MTSS Licence: Money Transfer Service Scheme Agent Approval
The Money Transfer Service Scheme (MTSS) lets an Indian agent pay out money sent from abroad to people in India. An MTSS licence is really an RBI permission, and it is open only to authorised persons. We pick the right route for you and prepare the file.
What it is
The Money Transfer Service Scheme is the RBI framework for quick, small-value personal remittances into India. A foreign money transfer operator, called the overseas principal, sends the money. An Indian agent pays it out to the beneficiary. Think of a worker in Dubai sending money home to a family in Faridabad. No money leaves India under this scheme.
People call it an “MTSS licence”, but RBI does not issue a stand-alone licence. The permission rides on your status as an authorised person under the Foreign Exchange Management Act, 1999. Since the Foreign Exchange Management (Authorised Persons) Regulations, 2026 came into force on 6 May 2026, a Full Fledged Money Changer (FFMC) may act as an MTSS agent, and a Forex Correspondent (FxC) may act as an MTSS sub-agent.
Who it applies to
Existing FFMCs and AD Category-II entities
If you already hold RBI authorisation, you can apply to add MTSS agency by tying up with an overseas principal.
Businesses that want to pay out remittances
Say you run a travel desk or a mobile shop in Ballabgarh with steady walk-in customers. The sub-agent route usually fits, working under an Indian agent that RBI has already approved.
A fresh FFMC applicant
Under the 2026 Regulations RBI is not considering fresh FFMC applications, except those already pending. Here is the catch: a new business normally enters through an agent, as a Forex Correspondent.
Why it matters
Earn from remittances, legally
Payout work brings steady footfall to your counter. And because it sits inside the RBI framework, banks and principals can deal with you openly.
Know exactly what you can pay
The scheme has fixed caps per remittance, per person and per cash payout. Once your processes follow them, audits stay calm.
Trust from principals
Overseas principals prefer agents whose KYC and records are already in order. An approved set-up proves it.
Documents required
About your entity
- Certificate of incorporation, MOA and AOA
- Latest audited financials
- Existing RBI authorisation (AD-II or FFMC), if any
- Board resolution authorising the application
About the tie-up
- Details of the overseas principal and how it operates
- Draft or signed agency agreement
- List of branches or outlets that will pay out
- Estimated annual remittance volume
About the people
- PAN and address proof of directors
- Declaration that no law-enforcement case is pending
- KYC and AML policy for remittance payout
- Banker reports, where RBI asks for them
How it works
Check your route first
We look at your constitution and any existing RBI authorisation, then decide whether you apply as an Indian agent or work as a sub-agent.
Vet the overseas principal
The principal should be licensed in its home country and meet anti-money-laundering standards. We help you collect the papers to show that.
Build the application file
We draft the application, the board resolution, the business estimate and the KYC policy, and check every attachment before it goes.
File with RBI and answer queries
We submit through the channel RBI prescribes for your category and reply to queries in writing. Where the work needs a practising CA, a qualified professional signs.
Set up payout and reporting
After approval we help you draft SOPs for identity checks, the ₹50,000 cash limit and reporting, and keep your compliance calendar.
Rules that shape your daily operations
RBI’s MTSS guidelines set the working limits. We check each figure against the current RBI text before you sign anything.
| Item | Rule |
|---|---|
| Direction of money | Inward personal remittances only |
| Per remittance | Up to USD 2,500 |
| Per person per calendar year | Maximum 30 remittances |
| Cash payout | Up to ₹50,000; above that, cheque, demand draft or direct bank credit |
| Sub-agents | Work only through the Indian agent, which stays answerable for them |
Look at the payout row first. A single USD 2,000 remittance will almost always cross ₹50,000. In practice, most payouts need a bank credit or a cheque, not cash.
Timelines
6 May 2026
The Foreign Exchange Management (Authorised Persons) Regulations, 2026 came into force and now define who can act as an MTSS agent or sub-agent.
Within two years of 6 May 2026
Existing franchisee arrangements of money changers must wind down. After that, such a franchisee may become a Forex Correspondent.
RBI decides the pace
We cannot promise a fixed processing time. A complete file with a clean principal tie-up moves faster than one that needs repeated clarifications.
What happens if you break the rules
Penalty under FEMA
Section 13(1) of FEMA allows a penalty of up to three times the sum involved. Where the amount cannot be quantified it is up to ₹2 lakh, plus up to ₹5,000 a day while the breach continues.
Loss of authorisation
Breaching the conditions of your authorisation can lead RBI to cancel it, and the principal will end the tie-up too.
Exposure on KYC
Weak identity checks on payouts invite scrutiny under anti-money-laundering rules. Clean records are your best protection.
Frequently asked questions
Does RBI issue a separate MTSS licence?
No. RBI does not issue a stand-alone licence. You act as an MTSS agent or sub-agent because you are already an authorised person, such as an FFMC or an AD Category-II entity. The 2026 Regulations list MTSS agency among FFMC activities and MTSS sub-agency among Forex Correspondent activities. We first work out which status suits you, and the application follows from that.
Can a new company become an MTSS agent directly?
Usually not directly. Fresh FFMC applications are not being considered under the 2026 Regulations, except those already pending. A new business normally works as a Forex Correspondent, appointed by an authorised dealer, and acts as an MTSS sub-agent. We map this route with you and prepare the arrangement so it is clean from day one.
What is the maximum amount per MTSS remittance?
The guideline cap is USD 2,500 per remittance, and one person can receive at most 30 remittances in a calendar year. Both limits apply to inward personal remittances. If your customers receive more, the excess must come through a normal banking channel. We confirm the figures against the current RBI text before you set up your process.
Can I pay remittances in cash?
Yes, but only up to ₹50,000 per remittance. Anything above that must go by account payee cheque, demand draft, payment order or direct credit to the beneficiary’s bank account. Build this into your counter process so staff never have to decide on the spot. We draft a simple SOP for it.
Can I send money abroad under MTSS?
No. MTSS covers inward personal remittances only: money coming into India. Sending money abroad falls under different rules, and often needs an authorised dealer bank. If you also want to offer outward services, we can look at the other licences with you, such as a payment aggregator licence.
What is an overseas principal?
An overseas principal is the foreign money transfer operator that sends the money. It should be licensed or regulated in its home country, follow anti-money-laundering standards, and have a clean record. You sign an agency agreement with it. We help you check the principal’s papers and read the agreement before you commit.
What if my business already holds an FFMC authorisation?
Then you are close to the finish line. An FFMC may act as an MTSS agent under the 2026 Regulations. You still need to tie up with an overseas principal and follow the MTSS guidelines. We prepare the file and the board resolution, and keep your FFMC compliance and MTSS reporting aligned.
How long does approval take?
RBI sets its own pace, so we do not promise a date. The biggest delays come from incomplete papers and from principals whose documents need fresh clarifications. A complete file, with the principal vetted early, saves weeks of back-and-forth. We keep you posted at each step and reply to RBI queries quickly.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Ready to begin?
Tell us whether you hold an RBI authorisation today. We will name the route and the papers you need.