RBI may allow online money transfer overseas

Reserve Bank of India (RBI) announced it was considering allowing non-banking entities to start wire transfers for outward remittances from India. Currently inward remittances are limited and only banks are permitted to implement outward remittances.

The sources stated that several players of the industry have approached the institution with requests on enabling outward remittances on their money transfer channels. However, the know-your-customer (KYC) norms to be followed in online cash transfer abroad are still being developed.

Money Transfer Service Scheme (MTSS) provide transfer of personal remittances from overseas to beneficiaries in India. There have been 26 Indian agents and 11 overseas principals under MTSS since April 2008. However, the system does not allow the repatriation of similar inward remittances anymore.

Additionally, sources state RBI may soon permit online outward remittances for Indian customers as well.

Such money transfer operators as Western Union Money Transfer, and Moneygram cannot offer outward remittances in India. Nevertheless, TimesofMoney, online money transfer portal provides inward remittances.

Outward remittances in the country are mostly done at bank-branch levels. However, there is an annual remit limit of $200,000 per customer.