By
TII News Service
NEW
DELHI, AUG 04, 2010: WHILE answering a question in the Rajya Sabha yesterday,
the MoS for Finance, Mr Namo Narain Meena, informed the House that the
RBI has so far appointed 25 Indian agents to route cross-border inward
personal remittances into India under Money Transfer Service Scheme (MTSS).
In terms of Section 4(1) of the payment and settlements Systems Act, 2007,
no person other than the Reserve Bank shall commence or operate a payment system
except under and in accordance with an authorization issued by the Reserve
Bank under the provisions of the said Act. In terms of explanation of Section
2(1)(i) of the Act, a payment system includes money transfer operations.
In terms of Section 3(c) of Foreign Exchange Management Act (FEMA), 1999, save
as otherwise provided in the said Act, rules or regulations made thereunder,
or with the general or special permission of the Reserve Bank, no person shall
receive otherwise (than) through an authorized person, any payment by order or
on behalf of any person resident outside India in any manner.
Under Money Transfer Service Scheme (MTSS), the Indian agent who has to be an
Authorised Dealer / Full Fledged Money
Changer requires prior RBI approval under the provisions of FEMA, 1999 to enter
into such an arrangement with an Overseas Principal for received cross border
personal inward remittances in India. The Overseas Principals are authorized
by the Reserve Bank under Section 4(1) of the Payment and Settlement Systems
Act, 2007.
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