Money Transfer Service Scheme (MTSS): Process, Features & Service Providers in India


Money Transfer Service Scheme (MTSS): Process, Features & Service Providers in India

By Jupiter Team · · 5 min read

If you have a family in India, or your family is visiting India as tourists, then you can transfer money easily to India through the money transfer service scheme (MTSS). It is one of the easiest ways to transfer money to India. Read to find out more about how to send money to India through MTSS.

Overview of Money Transfer Service Scheme (MTSS)

The money transfer service scheme of MTSS is an inward remittance (transfer) scheme that allows quick and easy transfer of foreign currency from abroad to beneficiaries in India. However, through MTSS, only personal remittances towards family maintenance and foreign tourists visiting India are possible. Also, no outward remittance is allowed through the money transfer service scheme.

MTSS has been introduced to ensure that foreign currency transfer happens swiftly to India. Foreign currency contributes to the national income and is also the biggest source of external financing. By making inward remittances easier, the government is not only helping people transfer money into the country but also ensuring growth in foreign currency reserves.

In MTSS, the inward remittance is done through a foreign fund transfer service company called the overseas principal. They coordinate with authorized agents or banks in India who disburse the funds to the beneficiary. The inward remittance is capped at USD 2,500 per transaction with a maximum of 30 transactions per calendar year per person. MTSS also pays in cash, and the maximum cash disbursement limit is Rs 50,000. The bank gives a cheque or demand draft to the beneficiary for any amount higher than this.

Apart from MTSS, there is another inward remittance scheme called Rupee Drawing Arrangement (RDA). RDA is a remittance scheme that is only for individuals. However, it can also be used for the purpose of trade, but there is a restriction on the amount that can be transferred. Here, the authorized banks enter into an agreement with foreign exchange houses. The banks open and maintain the foreign exchange houses' accounts and disburse the funds to the beneficiaries.

Features of Money Transfer Service Scheme

  • Remittances allowed: Through MTSS, one can only transfer money for personal purposes, such as maintaining a family or favouring a foreign tourist. MTSS cannot be used for the purpose of trade, making any donation, or transferring to NRE or NRO accounts.
  • Limit on transactions: MTSS allows only 30 transactions per calendar year with a limit of USD 2,500 per transaction.
  • Cash disbursal: MTSS also pays in cash, but only up to Rs 50,000. Anything beyond that is paid through cheques or demand drafts.
  • Payment currency: MTSS pays only in Indian currency, not foreign currency.
  • Convenience: MTSS is a very easy, hassle-free, and swift method of sending payment to a beneficiary in India.
  • No outward remittances: MTSS doesn’t allow outward remittances or repatriation of funds. In other words, the remitter, or the person transferring the money from abroad, cannot transfer the money back to his country of residence through MTSS.

Operational Procedure

To send money through MTSS, you have to follow the steps below:

  • The remitter must go to an overseas principal, fill out a form, and pay fees as required. The overseas principal is a registered entity with the central bank of the foreign country, which has to obtain authorization from the Reserve Bank of India (RBI) to commence or operate payments.
  • Once the fee is paid, the overseas principal will generate a unique Money Transfer Control Number (MTCN). This MTCN will act as a reference number for the transaction.
  • The remitter has to give this reference number to the payee or beneficiary. Then the beneficiary will then go to an authorized agent or bank and fill in the necessary application, attach the necessary identification documents, and give the MTCN number.
  • After verification, the money is paid to the beneficiary in Indian currency.

MTSS Service Providers in India

In India, Indian agents are authorized to pay money to the beneficiary received through MTSS. Beneficiaries can go to any of the Indian agents to collect the remittance amount. An Indian agent can be any one of the following:

  • Authorized Dealer Category-I bank: All Scheduled, Commercial, State, and Urban Cooperative banks authorized by the RBI can undertake capital and current account transactions in the country.
  • Authorized Dealer Category II: Select entities who are authorized to carry out non-trade-related foreign currency transactions in the country fall under Authorized Dealer Category II.
  • Full Fledged Money Changer (FFMC): Select registered companies that are authorized to buy and sell foreign currency only for specified purposes such as private or business travel aboard.
  • Department of Posts: The Department of Posts in India is authorized to give inward remittances to the beneficiaries in India.


MTSS is one of the easiest and fastest ways to transfer money to India. However, to remit money in India, the remitter must go to only registered agents in their country. They must also ensure that the MTCN number is correctly passed onto the beneficiary in India. Only then can the beneficiary get the money.

Frequently Asked Questions

What is the full form of MTSS?

MTSS stands for Money Transfer Service Scheme, which is the easiest way to transfer money from abroad for personal purposes.

Which is the best method to transfer money internationally?

The best method to transfer money to India is a wire transfer. It is faster than money order and demand draft and cheaper than direct online transfer.

How to transfer money internationally?

To transfer money from India, you can use a money order, demand draft, online transfer, or wire transfer. Each of them has pros and cons with respect to speed, safety, and charges. In contrast, you can use the money transfer service scheme (MTSS) or the rupee drawing arrangement (RDA) to transfer money from abroad to India for personal purposes.

How many days does it take to complete the transaction under MTSS?

Through MTSS, you can get the money almost instantly from the Indian agent, provided you have the reference or Money Transfer Control Number (MTCN) with you. All you have to do is go to the Indian agent, such as a post office or an authorized bank, fill out the form with the necessary details, and provide identification proof. You will either be paid in cash or cheque almost immediately.

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