Money Transfer Service Scheme
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Money Transfer Service Scheme

MTSS (Money Transfer Service Scheme) is the most convenient option for the purpose of inward remittance of money abroad to India .It can be availed tourist travelling to India. Only Inward remittance in India is allowed. Under  this , remittance can done in speedy & hassle-free manner.

Inward remittance as it is known as under the scheme Of MTSS is meant for expenditure  within  India. A resident India is used these remittances for maintenance  and other forms of expenditure.

 Features of Money Transfer Service Scheme:

  1. Reliable Swift and convenient.
  2. It is hassle free instantaneous payment to beneficiary against photo identification.
  3. The scheme does not envisage repatriation of such inward remittances.
  4. Only 30 transactions per beneficiary are permitted in calendar year.
  5. Maximum remittance with a ceiling of USD 2500.

Operational Procedure:
For Remitter

  1. Visit your nearest Money transfer outlet.
  2. Complete submit valid Identifications Documents & the send form.
  3. Remit the money to the agent , collect the Transaction reference number.
  4. Convey the transactional details to beneficiary.

For Beneficiary

  1. Collect the reference number from the Remitter.
  2. Walk into nearest SIB Branch.
  3. Complete the Remittance Receive from furnish transaction details with Valid Id Proof.
  4. Collect the funds in local currency.

General Guidelines for seeking permission For Money Transfer Scheme:

  1. The agent in India should be Authorised Dealer, Full Fledged Money Charger, Registered Non  Banking Financial Company or IATA approved Travelled Agent.(having minimum net worth of Rs.25 lakh).If the agent is a NBFC, they should incorporate a clause in the Memorandum and Articles of Association that it can take undertake money transfer activities.
  2. Information/documents to be submitted by the Agent alongwith application.
  • Name and address of the overseas Principal with whom the MTS will be conducted.
  • An undertaking that the agent/directors is/are not under investigation by any law enforcing agency.
  • List of branches in India and their addresses where MTS will be conducted by the Agent.
  • Estimated volume of business per month/year under the scheme.
  • Balance Sheet and Profit and Loss account for the last two financial years, if available.
  • Full details of the operation of the scheme by the overseas principal. (Our permission would be country specific).

Criteria for selection of overseas Principal

a) The principal should be a registered entity licensed by the Central Bank/Government or any other regulatory authority for carrying on Money Transfer Activities or where Money Transfer is an unlicenced activity, the principal should be licensed/supervised by any other regulatory/supervisory body in the host country.
b) Should be registered with the trade/Industry bodies.
c) Should have a good rating from one of the reputed credit rating agencies.
d) Should submit confidential reports from two banks.
e) Should submit a report certified by independent Chartered Accountants, regarding steps taken to comply with anti money laundering norms in the host country.

Collateral requirement
Collateral equivalent to 3 days’ average drawings or USD 50,000 whichever is higher, may be kept by the overseas principal with the designated bank in India.

The adequacy of collateral amounts should be reviewed half yearly on the basis of remittances received during the past six months.  The minimum amount of USD 50,000 shall be kept as a foreign currency deposit while the balance amount may be kept in the form of a Bank Guarantee.

Other conditions
a) Only personal remittances shall be allowed under this arrangement. Donations/contributions to charitable institutions/Trusts shall not be remitted through this arrangement.
b) A cap of USD 2500 has been placed on individual transaction under the scheme. Amounts upto Rs.50,000/- may be paid in cash. Any amount exceeding this limit shall be paid by means of cheque/D.D./P.O. etc. or credited directly to the beneficiary’s account only.
c) Only 12 remittances can be received by a single individual during a year.