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TMI BlogMaster Circular on Money Transfer Service Scheme (As updated on March 25, 2015)X X X X Extracts X X X X X X X X Extracts X X X X ..... DEX PART-A SECTION I Guidelines for permitting(authorising) Indian Agents under Money Transfer Service Scheme (MTSS) SECTION II Guidelines for Overseas Principals SECTION III Guidelines for appointment of Sub-Agents by Indian Agents SECTION IV Guidelines for renewal of permission (authorisation) of existing Indian Agents SECTION V Inspection of Indian Agents SECTION VI KYC/ AML/ CFT Guidelines for Indian Agents SECTION VII General Instructions PART-B Reports / Statements Annex-I: Format for Sub Agents of Indian Agents of MTSS Annex-II: Statement showing details of quantum of remittances received through Money Transfer Scheme during the quarter ended Annex-III: Statement of Collateral kept by Indian Agents Appendix PART-A SECTION I Guidelines for permitting (authorising) Indian Agents under Money Transfer Service Scheme (MTSS): 1. Introduction 1.1 Money Transfer Service Scheme (MTSS) is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible. No outward r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oup, all (other) non-banking financial companies as also the book value of debentures, bonds, outstanding loans and advances made to and deposits with its subsidiaries and companies in the same group in excess of 10 per cent of the Owned funds. 3. Procedure for making Applications to the Reserve Bank Application for necessary permission to act as an Indian Agent may be made to the respective Regional Office of the Foreign Exchange Department of the Reserve Bank of India, under whose jurisdiction the registered office of the applicant falls and should be accompanied by the documents pertaining to its proposed Overseas Principal, as detailed in Section II below and the following documents: a. A declaration to the effect that no proceedings have been initiated by / are pending with the Directorate of Enforcement (DoE) / Directorate of Revenue Intelligence (DRI) or any other law enforcing authorities, against the applicant or its directors and that no criminal cases are initiated / pending against the applicant or its directors. b. A declaration to the effect that proper policy framework on KYC / AML / CFT, in accordance with the guidelines issued by Reserve Bank of India, Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces favouring foreign tourists visiting India shall be allowed under this arrangement. Donations/contributions to charitable institutions/trusts, trade related remittances, remittance towards purchase of property, investments or credit to NRE Accounts shall not be made through this arrangement. b. A cap of US $ 2500 has been placed on individual remittance under the scheme. Amounts up to ₹ 50,000/- may be paid in cash to a beneficiary in India. Any amount exceeding this limit shall be paid by means of account payee cheque/ demand draft/ payment order, etc., or credited directly to the beneficiary's bank account only. However, in exceptional circumstances, where the beneficiary is a foreign tourist, higher amounts may be disbursed in cash. Full details of such transactions should be kept on record for scrutiny by the auditors/ inspectors. c. Only 30 remittances can be received by a single individual beneficiary under the scheme during a calendar year. 6. Criteria for RBI decisions (i) The Indian Agents need to have strength and efficiency to function profitably in a highly competitive environment. As a number of Indian Agents are already functioning, permission (author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... established in the money transfer business with a track record of operations in well regulated markets. e. The arrangement with Overseas Principal should result in considerably increasing access to formal money transfer facilities at both ends. f. The Overseas Principal should be registered with the overseas trade / Industry bodies. g. The Overseas Principal should have a good rating from one of the international credit rating agencies. h. The Overseas Principal should submit confidential reports from at least two of its bankers. i. The Overseas Principal should submit a report certified by independent Chartered Accountants, regarding steps taken to comply with anti money laundering norms in the home/ host country. j. The Overseas Principals will be fully responsible for the activities of their Agents and Sub Agents in India. k. Proper records of remitters as also beneficiaries pertaining to all pay-outs in India are to be maintained by the Overseas Principals. All records must be made accessible on demand to the Reserve Bank or other agencies of the Government of India, viz., Ministry of Finance, Ministry of Home Affairs, FIU-IND, etc. Full details of the remitters and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of incorporated entities). Note: Although obtaining of conduct certificate of the Sub Agent from the local police authorities is non-mandatory for the Indian Agents, the Indian Agents must take due care to avoid appointing individuals/ entities as Sub Agents who have cases / proceedings initiated / pending against them by any law enforcing agencies. * declaration regarding past criminal cases, cases initiated/ pending against the Sub Agent and/or its directors/ partners by any law enforcing agency, if any * PAN Card of the Sub Agents and its directors/ partners * Photographs of the directors/ partners and the key persons of the Sub Agent The above checks should be done on a regular basis, at least once in a year. The Indian Agents should obtain from the Sub Agents proper documentary evidence confirming the location of the Sub Agents in addition to personal visits to the site. The Indian Agents should discontinue agreements with Sub Agents who do not meet the criteria laid down above within three months from the date of this circular. 5. Selection of Centers The Indian Agents are free to select centers for operationalising the Scheme. However, this may be advised to the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [A.P. (FL Series) Circular No. 02] dated March 6, 2006, or a Scheduled Commercial Bank or the Department of Posts. 3. The Indian Agent should have minimum Net Owned Funds of ₹ 50 lakh. 4. Application for renewal of permission should be submitted to the Regional Office concerned of the Foreign Exchange Department of the Reserve Bank under whose jurisdiction the registered office of the Indian Agent falls along-with the documents pertaining to the Overseas Principal as detailed in Section II above and the following documents: a. A declaration to the effect that no proceedings have been initiated by / are pending with the Directorate of Enforcement (DoE) / Directorate of Revenue Intelligence (DRI) or any other law enforcing authorities, against the Indian Agent or its directors and that no criminal cases are initiated / pending against the Indian Agent or its directors. b. A write up on the KYC / AML / CFT, risk management and internal control policy framework, put in place by the Indian Agent. c. Audited Balance Sheet and Profit and Loss Account for the last two financial years of the Indian Agent, if available or a copy of the latest audited accounts, with a certificate f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certificate from their Statutory Auditors on Net Owned Funds to the Regional offices concerned of the Foreign Exchange Department of the Reserve Bank. As the Overseas Principals and the Indian Agents are expected to maintain minimum Net Worth and Net Owned Funds respectively on an ongoing basis, they are required to bring it to the notice of the Reserve Bank immediately along with a detailed plan of restoring the Net Worth/ Net Owned Funds to the minimum required level, if there is any reduction in their Net Worth/ Net Owned Funds below the minimum level. PART-B Reports / Statements 1. A quarterly statement of the quantum of remittances received, as per the enclosed format (Annex-II) should be furnished by the Indian Agents to the Regional Offices (ROs) concerned of the Foreign Exchange Department (FED) of the Reserve Bank, under whose jurisdiction their registered offices fall within 15 days from the close of the quarter to which it relates. 2. List of their additional locations should be furnished by the Indian Agents to the ROs concerned of the FED of the Reserve Bank, under whose jurisdiction their registered offices fall, on quarterly basis within 15 days from the close of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Accountant? Details (Enclosures as at Annex-Ia) 12. Whether prosecuted/ convicted for criminal/ economic offence? If yes, particulars thereof (Enclosures as at Annex-Ia) 13. Whether the Sub Agent is solvent as on date 14. Details (Name, Designation, Nationality, Residential address, PAN No., Name/s of other company/ies in which the person has held any post, Details of equity shareholding in the company, if any) of Chairman/Managing Director/Director/Chief Executive Officer (Details as at Annex-Ia) Note: With reference to point 9, ownership of the Sub Agent should be detailed up to the last layer of equity holding ending in mentioning the name of the individual/ entity that owns beneficial interest in the company. Date: Signature of Chartered Accountant Place: Signature of Managing Director Annex-Ia : List of Certified copies of Documents to be submitted * Certificate of Incorporation * Memorandum (up-to-date) and Articles of Association * Board resolution for conducting money transfer activities, submission of application and its contents including authorization of an official to make the application. * Details of associates, group companies, etc. * PAN Card/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26 [A.P.(FL Series) Circular No. 07] December 22, 2010 7. A.P.(DIR Series) Circular No.28 [A.P.(FL Series) Circular No. 09] December 22, 2010 8. A.P.(DIR Series) Circular No.50 [A.P.(FL Series) Circular No. 12] April 6, 2011 9. A.P.(DIR Series) Circular No. 52[A.P.(FL Series) Circular No. 14] April 6, 2011 10. A.P. (DIR Series) Circular No. 62 May 16, 2011 11. A.P. (DIR Series) Circular No. 64 May 20, 2011 12. A.P.(DIR Series) Circular No. 66 May 20, 2011 13. A.P.(DIR Series) Circular No. 22 September 19, 2011 14. A.P.(DIR Series) Circular No. 24 September 19, 2011 15. A.P.(DIR Series) Circular No. 78 February 15, 2012 16. A.P.(DIR Series) Circular No. 87 February 29, 2012 17. A.P.(DIR Series) Circular No. 108 April 17, 2012 18. A.P.(DIR Series) Circular No. 132 June 8, 2012 19. A.P.(DIR Series) Circular No. 49 November 7, 2012 20. A.P.(DIR Series) Circular No. 67 January 2, 2013 21. A.P.(DIR Series) Circular No. 71 January 10, 2013 22. A.P.(DIR Series) Circular No. 73 January 10, 2013 23. A.P.(DIR Series) Circular No. 89 March 12, 2013 24 A.P.(DIR Series) Circular No.102 May 3, 2013 25 A.P.(DIR Series) Circular No.35 Septem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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