Master Direction – Money Transfer Service Scheme (MTSS)

Question 1

………………………….. is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India.

Answer 1

Money Transfer Service Scheme (MTSS)

Question 2

What type of remittances are permissible under MTSS

Answer 2

Only inward personal remittances for maintenance of family or remittances favouring foreign tourists visiting India

Question 3

Under MTSS the remitters and the beneficiaries are ………………….. only.

Answer 3

Individuals

Question 4

Tie-up under MTSS is between reputed money transfer companies abroad known as …………………… and agents in India known as …………………….

Answer 4

Overseas Principals, Indian Agents

Question 5

……………………………………… is an authorized money changer authorised to purchase foreign exchange from non-residents visiting India and residents, and to sell foreign exchange for private and business travel purposes only.

Answer 5

Full Fledged Money Changers (FFMC)

Question 6

What should be the minimum NOF for Indian Agents under MTSS

Answer 6

50 Lakhs

Question 7

What is the collateral requirement for Overseas Principal which needs to kept in favour of Indian Agent in a designated bank in India?

Answer 7

Collateral equivalent to 3 days’ average drawings or USD 50,000, whichever is higher out of which a minimum amount od USD 50,000 needs to be kept in the form of Bank Guarantee.

Question 8

what is the Cap on individual remittance per instance under MTSS?

Answer 8

USD 2500

Question 9

How many remittances can be received by a single individual beneficiary under the scheme during a calendar year?

Answer 9

30

Question 10

The Overseas Principal should obtain necessary authorisation from the………………, RBI under …….. Act

Answer 10

DPSS, PSS

Question 11

Minimum net-worth of Overseas Principals should be at least ………………. as per the latest audited balance sheet and shall be maintained all time.

Answer 11

USD 1 million

Question 12

Under MTSS, Amounts up to Rs……………………/- may be paid in cash to a beneficiary in India excess amount to be credited to Account.

Answer 12

₹ 50,000/-. However, in exceptional circumstances, where the beneficiary is a foreign tourist, higher amounts may be disbursed in cash

Question 13

The ………………….. have to ensure Due Diligence, KYC, Training, Audit, Inspection, Reporting and other compliances of sub-agents

Answer 13

Indian Agents. The audit at least once in a month and on-site inspection at least once in a year of premises and records of the Sub Agents shall be conducted by the Indian Agent.

Question 14

The upper limit for movement of cash in INR would be Rs………………../- and in Foreign Currency equivalent of USD …………………… except the transactions where the imported foreign currency is being transported to the offices/ branch of the AP.

Answer 14

₹10,00,000/-, $1,00,000