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.
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Free sample — 8 of 66 rapid-fire Q&A cards.
What is the full form of MTSS in the context of foreign exchange remittance?
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.
What is the maximum number of overseas principals an Indian Agent can tie up with under MTSS?
An Indian Agent can tie up with only one overseas principal under MTSS.
Who is considered an Indian Agent under the MTSS framework?
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.
What is the minimum net worth required for an entity to become an Indian Agent under MTSS?
The minimum net worth required is INR 50 lakh for Indian Agents under MTSS.
What is a Sub-Agent under MTSS and how does it differ from an Indian Agent?
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.
Which regulatory body in India authorizes entities to act as Indian Agents under MTSS?
The Reserve Bank of India (RBI) authorizes entities to act as Indian Agents under MTSS.
Which categories of entities are eligible to be appointed as Sub-Agents under MTSS?
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.
What is the currency in which MTSS inward remittances are paid to beneficiaries in India?
MTSS inward remittances are paid to beneficiaries only in Indian Rupees (INR).
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