RBI/2013-14/511
A.P. (DIR Series) Circular No. 110
March 4, 2014
To,
All Authorised Persons, who are Indian Agents under Money Transfer Service
Scheme
Madam / Sir,
Money Transfer Service Scheme – ‘Direct to Account’ facility
Attention of Authorised Persons, who are Indian Agents under Money Transfer
Service Scheme (MTSS) is invited to Para 4.4 (e) Payment to Beneficiaries of
Annex II - Section I of the
A.P. (DIR Series) Circular No. 89 dated March 12,
2013 on Money Transfer Service Scheme – Revised Guidelines, as amended from time
to time.
2. To facilitate receipt of foreign inward remittances directly into bank
account of the beneficiary, it has been decided to allow foreign inward
remittances received under MTSS to be transferred to the KYC compliant
beneficiary bank account through electronic mode, such as NEFT, IMPS etc. The
procedure to be followed for the purpose is as under.
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:
- The Recipient Bank will credit the amount transferred by the Partner bank only
to KYC compliant bank accounts.
- 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is credited or allowed to be withdrawn.
- The Partner Bank shall appropriately mark the direct-to-account remittances to
indicate to the Recipient Bank that it is a foreign inward remittance.
- 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.
- 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.
- 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.
3. All other instructions issued vide
A. P. (DIR Series) Circular No. 89 dated
March 12, 2013, as amended from time to time, will remain unchanged.
4. Authorised Persons (Indian Agents) may bring the contents of this circular to
the notice of their constituents concerned.
5. The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999) and are without prejudice to permissions / approvals, if any, required
under any other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager In-Charge