RBI vide RBI/2013-14/511 A.P. (DIR Series) Circular No. 110
dated March 4, 2014 has decided to allow foreign inward remittances
received under Money Transfer Service Scheme (MTSS) to be
transferred to the KYC compliant beneficiary bank account through
electronic mode, such as NEFT, IMPS etc. with a view to facilitate
receipt of Foreign Inward Remittances directly into bank account of
Accordingly, RBI has prescribed the procedure to be followed in
Foreign inward remittances received by the bank acting as Indian
Agent under MTSS (termed as 'Partner Bank'), may be
electronically credited directly to the account of the beneficiary,
held with a bank other than the Indian Agent Bank (termed as
'Recipient Bank'), subject to the following conditions:
A. The Recipient Bank will credit the amount transferred by the
Partner bank only to KYC compliant bank accounts.
B. In respect of the bank accounts which are not KYC compliant,
the Recipient Bank shall carry out KYC/ CDD of the recipient before
the remittance to such account is credited or allowed to be
C. The Partner Bank shall appropriately mark the
direct-to-account remittances to indicate to the Recipient Bank
that it is a foreign inward remittance.
D. The Partner Bank shall ensure that accurate originator
information and necessary beneficiary information is included in
the electronic message while transferring the fund to the Recipient
Bank. This information should be available in the remittance
message throughout the payment chain i.e. the overseas principal,
the Partner Bank and the Recipient Bank. The Partner Bank should
add an appropriate alert in the electronic message indicating that
this is a foreign inward remittance and should not be credited to
KYC non-compliant account and NRE/NRO account.
E. The identification and other documents of the recipient shall
be maintained by the Recipient Bank as per the provisions of
Prevention of Money Laundering (Maintenance of Records) Rules,
2005. All other requirements under KYC/AML/CFT guidelines issued by
the Reserve Bank of India for MTSS from time to time shall be
adhered to by the Partner Bank.
F. The Recipient Bank may seek additional information from the
Partner Bank and shall report suspicious transactions to the
FIU-IND with details of the Partner Bank through which they
received the remittances.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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