RBI Grants MTSS License to Act as Indian Agent for Western Union and MoneyGram
RBI has permitted the company to act as an Indian Agent under the Money Transfer Service Scheme (MTSS).
- License Type
- Money Transfer Service Scheme (MTSS) - Indian Agent
- Principal Agents
- Western Union Financial Services Inc and MoneyGram Payment Systems, Inc
- Service Scope
- Inward cross-border money transfers
- License Validity
- Perpetual
- Regulatory Authority
- Reserve Bank of India (Foreign Exchange Department)
What happened
The Reserve Bank of India (Foreign Exchange Department) has accorded its permission to the company to act as an Indian Agent under the Money Transfer Service Scheme (MTSS) of the RBI.
Scope of the approval
- The company may act as principal agent for Western Union Financial Services Inc and MoneyGram Payment Systems, Inc.
- It may undertake inward cross-border money transfer business in line with the applicable RBI framework.
- Validity of the approval: perpetual.
Background
This follows the Board's earlier decision, intimated to the exchange in November 2024, to re-commence the MTSS business by obtaining the required licence from the RBI. The company applied, and the RBI conveyed its permission by email.
What it means
MTSS is the RBI framework that allows money sent from abroad to be paid out to beneficiaries in India. Acting as an Indian Agent for the two overseas principals is a key regulatory authorisation for the company's remittance-related activities. Commencement of operations will be in accordance with the conditions of the approval and applicable law.
There is no withdrawal, cancellation or suspension of any licence involved in this intimation.
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