All Non-Deposit Accepting Non-Banking Financial Companies with asset size of `.100 crore and above
Appointment of Non-Deposit Accepting NBFCs with asset size of `.100 crore and above as sub- agents under Money Transfer Service Schemes (MTSS)
In order to broaden the network of sub-agents under the Money Transfer Service Schemes (MTSS), it has been decided to permit Non-Deposit Accepting NBFCs with asset size of `.100 crore and above to act as sub-agents under MTSS subject to the following conditions:
There is no co-mingling of the Indian agent’s funds with that of the NBFC’s funds.
The Indian agent should maintain with a designated bank, a security deposit in favour of the NBFC sub-agent. The amount of the security deposit to be maintained may be mutually decided between the Agent and the sub-agent. It should be ensured that the payouts of NBFC sub-agents pending reimbursement by the agents should not, at any point of time, be higher than the security deposits.
No NBFC, acting as sub-agent, should appoint any other entity as its sub-agent.
2. NBFCs desirous to act as sub-agents under the MTSS shall take prior approval of the Reserve Bank. Application in this regard may be forwarded to the concerned Regional Offices of the Reserve Bank of India.