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As of my last knowledge update in January 2022, the Money Transfer Service Scheme (MTSS) in India is a service offered by authorized entities, including banks and non-banking financial institutions, for facilitating cross-border remittances. MTSS allows individuals to send and receive money internationally through designated service providers.

Here are some key points about MTSS in India:

1. **Authorization:**
– Entities wishing to offer MTSS must be authorized by the Reserve Bank of India (RBI) to operate as a principal or an aggregator under the MTSS.

2. **Designated Service Providers:**
– Authorized entities can provide the MTSS through their branches or franchisees. The service is often provided in collaboration with international money transfer operators (IMTOs).

3. **Transaction Limits:**
– The RBI sets transaction limits for individuals using MTSS. These limits are subject to periodic reviews and may vary based on the remittance corridor.

4. **Documentation and Compliance:**
– Users of MTSS need to provide necessary identification and documentation as per the regulatory requirements. The service providers are required to adhere to anti-money laundering (AML) and know your customer (KYC) norms.

5. **Foreign Exchange Management Act (FEMA):**
– Transactions under MTSS are governed by the Foreign Exchange Management Act (FEMA), and service providers must comply with FEMA regulations.

6. **Purpose of Remittances:**
– Remittances under MTSS are typically for personal purposes such as family maintenance and support, gift remittances, donations, etc.

7. **Regulatory Oversight:**
– The RBI monitors and regulates MTSS to ensure compliance with guidelines and to safeguard the interests of users.

8. **Service Charges:**
– Service providers may charge fees for facilitating remittances. The fees and charges are typically disclosed to the users.

9. **Network Expansion:**
– Over time, the RBI and service providers may work towards expanding the MTSS network and enhancing the efficiency of cross-border remittances.

10. **Regular Updates:**
– The regulatory framework and guidelines for MTSS may be subject to updates and revisions. It’s important for service providers and users to stay informed about any changes.

11. **Consumer Education:**
– Service providers often engage in consumer education to make users aware of the features, costs, and safe usage practices of MTSS.

Please note that the information provided here is based on my knowledge as of January 2022, and there may have been developments or changes in regulations since then. For the most current and specific details regarding MTSS, it is advisable to refer to the latest guidelines issued by the Reserve Bank of India or consult with regulatory authorities.

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