Master Direction – Money Transfer Service Scheme (MTSS) (Updated as on November 28, 2025)
UR
- Applies toBanks, money changers and post offices approved to send money transfers (MTSS agents)
- StatusIn force
- ImportanceFOR INFORMATION
- IssuedFeb 23, 2017
- Amendmentsnone tracked
- Length28 points in 2 sections · 3 min read
The four dates on this rule
- PublishedFeb 23, 2017The day RBI put this document out.
- Starts to applyNot statedNot stated separately in this document. Read the rule itself before you assume a start date.
- Time to get readyNot statedCannot be worked out until the day it starts to apply is known.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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Numbers to remember
| Rs 50 lakh | A bank or money changer needs at least Rs 50 lakh of its own funds to become an agent. RBI Para 3 |
| three days | The foreign partner keeps security money with an Indian bank. It must be three days of transfers, or USD 50,000, whichever is more. RBI Para 3 |
| Rs 50,000 | Up to Rs 50,000 of a transfer can be paid in cash. Any larger amount must go by cheque, draft or bank transfer. RBI Para 3 |
| 15 days | An Indian Agent must report new sub-agents to RBI within 15 days of each quarter's end. RBI Para 5 |
| three months | An Indian Agent must end its agreement with a sub-agent that fails these checks within three months. RBI Para 5 |
| one month | An agent must apply to renew its permission at least one month before it expires. RBI Para 6 |
What it says
Must know
1. Who this scheme covers
MTSS lets banks and money changers send personal money transfers from abroad into India.
2. No sending money abroad
An Indian Agent cannot send any money from India back to the Overseas Principal.
3. Who may apply to join
Only an Authorised Dealer, a money changer, a scheduled bank or the post office may apply.
4. Net worth needed to join
A bank or money changer needs at least Rs 50 lakh of its own funds to become an agent.
5. Declare no enforcement case
A new agent must declare that no enforcement case is pending against it or its directors.
6. Security money from abroad
The foreign partner keeps security money with an Indian bank. It must be three days of transfers, or USD 50,000, whichever is more.
7. Least amount as foreign currency
At least USD 50,000 of that security money must be kept as a foreign currency deposit.
8. Cap on one transfer
RBI has capped a single money transfer under this scheme at USD 2500.
9. Cash limit to a reader
Up to Rs 50,000 of a transfer can be paid in cash. Any larger amount must go by cheque, draft or bank transfer.
10. Yearly cap per person
One person can receive only 30 money transfers under this scheme in a calendar year.
11. PSS Act licence needed
The foreign partner must first get RBI's payment-system licence under the PSS Act, 2007.
12. Foreign partner needs a licence
The foreign partner must be licensed for money transfer in its own home country.
13. Foreign partner's own net worth
The foreign money transfer company must hold at least USD 1 million of its own net worth at all times.
14. Report new sub-agents quarterly
An Indian Agent must report new sub-agents to RBI within 15 days of each quarter's end.
15. Checking a sub-agent every year
An Indian Agent must run these background checks on a sub-agent at least once a year.
16. Drop a failing sub-agent
An Indian Agent must end its agreement with a sub-agent that fails these checks within three months.
17. Monthly visits to sub-agents
An Indian Agent must physically inspect each sub-agent's office and records at least once a month.
18. Indian Agent answers for sub-agents
The Indian Agent, not RBI, is responsible for everything its own sub-agents do.
19. When to apply for renewal
An agent must apply to renew its permission at least one month before it expires.
20. Paying into a KYC account
A bank receiving the transferred money into an account must first check that the account is KYC-compliant.
21. Check KYC before paying out
If an account is not yet KYC-compliant, the bank must complete its checks before paying out the money.
22. Yearly certificate to RBI
Every Indian Agent must send RBI its yearly audited accounts and a certificate on its own funds.
23. Report a funds shortfall
An agent whose own funds fall below the minimum must tell RBI at once, with a plan to fix it.
Do it
1. Collateral reviewed every quarter
An Indian Agent must review its security money every quarter, based on the last three months.
2. How long a permission lasts
RBI first grants permission for one year, then renews it for one to three years at a time.
3. RBI's power to inspect agents
RBI can inspect any Indian Agent under this scheme at any time.
4. Keep the recipient's papers
The bank must keep the recipient's identification papers under the money-laundering record rules.
5. Cash limit during elections
During elections, cash movement is capped at Rs 10,00,000, or USD 1,00,000 in foreign currency.