Clarification
I have received lot of queries related to the RBI Circular regarding the Money Transfer from abroad. The clarification for the same is given below.
Money Transfer Service Scheme (MTSS ) is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only personal remittances such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible. Remittance in the nature of donations or charity is not permitted under this scheme. The system envisages a tie-up between reputed money transfer companies abroad (Eg. Western Union, UAE Exchange Company etc) and agents in India (Eg. Indian Post Office, Muthoot, other NBFCs, etc) who would disburse the funds to the beneficiaries at ongoing exchange rates. The system does not envisage the repatriation of such inward remittances so this money is not eligible to credited in the NRE account. The Indian agent is also not allowed to remit any amount on account of exchange loss to the overseas principal.
This MTSS system of remittance of money from abroad is basically operated by agents of Non-banking money exchange companies like Western Union, UAE Exchange Company etc and this rule is not applicable for money remitted through normal banking channels to your NRE account. Also the limit of USD. 2,500/- per remittance is applicable to only the money transfer made through these money exchange companies. Also, this money is non-repairable hence not eligible to be credited in your NRE/FCNR accounts.
Hope, I clarified your quires. So I am not going to respond to your individual queries. Please treat this as my reply to your quires related to the above subject.
Best Regards
Prakash Nair
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