FEFI · FOREIGNEXCHA

3 B SUB-AGENTS UNDER MTSS, KYC AML CFT GUIDELINES FOR INDIAN AGENTS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.

1 video class 66 one-liners
Quick revision

One-liners from this chapter

Free sample — 8 of 66 rapid-fire Q&A cards.

Q

What is the full form of MTSS in the context of foreign exchange remittance?

A

MTSS stands for Money Transfer Service Scheme, a mechanism for cross-border personal remittances into India through tie-ups between overseas money transfer companies and Indian agents.

Q

What is the maximum number of overseas principals an Indian Agent can tie up with under MTSS?

A

An Indian Agent can tie up with only one overseas principal under MTSS.

Q

Who is considered an Indian Agent under the MTSS framework?

A

An Indian Agent is an Authorised Dealer Category-II or a Full-Fledged Money Changer (FFMC) registered with RBI that has a tie-up with an overseas principal to disburse inward remittances in India.

Q

What is the minimum net worth required for an entity to become an Indian Agent under MTSS?

A

The minimum net worth required is INR 50 lakh for Indian Agents under MTSS.

Q

What is a Sub-Agent under MTSS and how does it differ from an Indian Agent?

A

A Sub-Agent is an entity appointed by the Indian Agent to expand the reach of remittance disbursement; unlike Indian Agents, Sub-Agents do not hold a direct RBI licence but operate under the Indian Agent's authorisation.

Q

Which regulatory body in India authorizes entities to act as Indian Agents under MTSS?

A

The Reserve Bank of India (RBI) authorizes entities to act as Indian Agents under MTSS.

Q

Which categories of entities are eligible to be appointed as Sub-Agents under MTSS?

A

Entities such as scheduled commercial banks, cooperative banks, regional rural banks, companies, firms, and other RBI-approved organisations can be appointed as Sub-Agents by Indian Agents under MTSS.

Q

What is the currency in which MTSS inward remittances are paid to beneficiaries in India?

A

MTSS inward remittances are paid to beneficiaries only in Indian Rupees (INR).

Unlock all 66 one-liners

Self-quiz mode with hidden answers + printable deck.

Open the deck
Watch & learn

Video classes for this chapter

Master the full FOREIGNEXCHA syllabus

Every chapter of Foreign Exchange Facilities for Individuals — videos, tests, notes and one-liner decks in one place.