Why worry about the 48-hour delay when you can transfer money to India instantly through MTSS? Money Transfer Service Scheme (MTSS) is a quick and safe inward remittance scheme operated under the supervision of the Reserve Bank of India.
However, MTSS comes with specific RBI rules on transfer limits, purposes and payment methods. Here is everything you need to know before making an MTSS transfer.
Also Read: How To Close A Savings Account In India As An NRI Living Abroad
What is MTSS?
The Money Transfer Service Scheme (MTSS) is a remittance service that allows for personal transfers from abroad to India instantly or within minutes. It is governed by the RBI under the Foreign Exchange Management Act (FEMA) 1999.
The scheme is designed exclusively for inward remittances for family maintenance and for foreign tourists in India. Donations to charitable organisations, remittances related to trade and freelance work, funds sent for property purchases, investments, or deposits into NRE accounts are not permitted through this arrangement.
MTSS is facilitated by the partnership between reputed overseas money transfer companies, called the Overseas Principals, and selected banks, Full-Fledged Money Changers (FFMCs), Non-Banking Financial Companies (NBFCs), and post offices in India, known as the Indian Agents. No person or entity is allowed to initiate MTSS transfers unless specifically permitted by the RBI.
Outward remittances from India are not permitted under the MTSS.
How Much Amount Can You Send Through MTSS
A cap of USD 2,500 has been established per transaction under this scheme.
Beneficiaries in India can receive amounts in cash if it is up to Rs. 50,000. Any amount exceeding this limit must be disbursed through an account payee cheque, demand draft, payment order, or can be directly credited to the beneficiary’s bank account.
But if the beneficiary is a foreign tourist, higher amounts may be provided in cash.
An individual beneficiary can only receive 30 MTSS remittances in a calendar year.
So, this arrangement sets the maximum limit for MTSS transfers per year at USD 75,000 (USD 2,500×30), which is approximately Rs. 70,86,000.
How to Transfer Money Under MTSS
- First, the remitter must visit an Overseas Principal, fill out the MTSS remittance form and provide a valid ID proof.
- Complete the transaction and get the reference code.
- Share the transaction details and reference code with the beneficiary.
- Within minutes, the beneficiary can visit the receiving Indian Agent to claim the amount.
- Fill out the receipt form, present a valid ID and the shared reference number.
- Collect the funds in Indian rupees instantly.
Popular MTSS Indian Agents and Overseas Principals
Indian Agents
- South Indian Bank
- ESAF Small Finance Bank
- YES Bank Ltd.
- Manappuram Finance Ltd.
- Muthoot Forex Ltd. and other Muthoot services
- Wizzmoni Financial Services Ltd.
- Trust Travel Pvt. Ltd.
- Ahalia Finforex Ltd.
- Capital India Finance Ltd.
- Alankit Forex India Ltd.
Overseas Principals
- Western Union Financial Services Inc.
- Muthoot Finserv USA Inc.
- MoneyGram Payment System
- Dandelion Payment Inc.
Pro Tip: Communicate with your bank or money transfer agent in advance to confirm they are RBI-approved for MTSS transfers to avoid last-minute hassle.
Fees Applicable for MTSS Transfers
The beneficiary in India is not charged for MTSS transfers, so they shall receive the transferred amount without any deductions or commission.
However, the sender abroad shall be charged an upfront fee, which is determined by the Overseas Principal. Additionally, banks charge high exchange rates for international money transfers.
MTSS is designed to make small personal remittances from abroad faster and easier to receive in India. Checking whether your transfer purpose and amount are eligible can make the process much smoother. And when it comes to fast and easy inward remittances, ExTravelMoney is your best option. Compare RBI-authorised service providers near you, book at competitive exchange rates, and complete your next money transfer abroad with expert assistance.
Ann Mariya Job is the Associate Content Writer at ExTravelMoney.com. Holding a Bachelor’s in Journalism, she excels in creating deeply researched, engaging, and crisp content. Her work helps readers understand the complexities of foreign exchange, overseas money transfers, and international travel.
