BRIEF UNDERSTANDING OF THE PRODUCT

Transcription

1 Product Name: Money Transfer Services Scheme Product Manual by Department of Organizational Development BRIEF UNDERSTANDING OF THE PRODUCT Version: 0.1 Money Transfer Services Scheme (MTSS) is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India or any other country. Only personal remittances such as remittances towards family maintenance and remittances favoring foreign tourists visiting India are permissible. The system envisages a tie -up between reputed money transfer companies abroad and agents in India who would disburse the funds to the beneficiaries at ongoing exchange rate. Features Flexibility (30 transactions/calendar year & max $2500 per transaction) Wide network (tie up with 6 service provider s & proximity of MFL branches) Eligibility criteria (Indian/foreign national above 18 years of age) Easy documentation (id & address proof) Easy payment mode (up to 50,000 in cash) Advantages Receive money from anywhere in the world at their doorstep Both Indian & Foreign National above 18 can receive money Receive money only with MTCN & Valid ID proof Funds remittance facility without Bank A/c up to Rs. 50,000 in cash 30 Remittances per Calendar Year & Max $2500 allowed per remittance for a single beneficiary SERVICE PROVIDERS Western Union 10 Digits The Western Union Group is the world's largest international money transfer service provider. Based on 135 years or more of experience in money transfer operations, Western Union provides an international money transfer service at about 510,000 locations in 200 countries.

2 Core business : The Western Union Company Location of head office of core business : Englewood, Colorado, USA Number of money transfers between individuals : 242D million Website : Money Gram 8 Digits Money Gram offers person-to-person money transfer and payment services in more than 200 countries and territories through a global network of 345,000 locations, working with retailers, international post offices and banks. Money Gram also offers bill payment services, issues money orders and processes official checks in select markets. The company is committed to providing affordable, reliable, secure and convenient payment services to consumers around the world. EzRemit 12 Digits EzRemit, launched in June 2003 is the money transfer product of BFC Exchange Limited, in the United Kingdom and was established to provide a remittance service to growing expatriate communities. It offers by the minute money transfer facilities across the globe. TRANS FAST 13 alpha numeric / 12 digits for remittance from Saudi Arabia TRANSFAST which was started in 1988 is set out to provide a safe, convenient and affordable way for people to send money to family, friends even themselves. It has an ever-growing network of over 300,000 points of payment, and has transferred more than $30 BILLION on behalf of millions of customers in over 100 countries. XPRESS MONEY 16 Digits Xpress Money started its operations in the year 1999 and is present over 170,000 agent locations in 150 countries. INSTANT CASH 9 Digits Instant Cash FZE, a subsidiary of Emirates Post - a UAE Federal Government Entity. Instant Cash has more than agent locations worldwide.

3 TARGET CUSTOMERS AND PRODUCT SUITABILITY NRI dependent families in India Visiting International tourists Foreigners for medical treatment in India Foreign students studying in India IDENTIFICATION & KYC Money Transfer Control Number (MTCN) - Presented by the beneficiary ID & Address Proof of the beneficiary To Receive Money (TRM) Form to be filled by the beneficiary (There is separate TRM form for each service provider) Innovative packaging PROCESS IN DETAIL 1. When recipient comes to branch (i.e., the beneficiary) the dealing Staff should Verify MTCN /Security number to know through which service provider he/she is receiving money o Money Gram 8 Digits o Western Union 10 Digits

4 o EzRemit 12 Digits o Trans Fast 13 Alpha numeral & 12 digits for remittance from Saudi Arabia o Xpress Money 16 Digits o Instant cash 9 Digits 2. Fill the respective TRM (To Receive money) Form with full name and address of the customer (E.g.: If customer comes with 8 digit codes fill Money Gram form, if 16 digits fill Xpress Money form) and obtain receiver s signature on that. 3. Verify Proof of ADDRESS and IDENTITY The beneficiary may be requested to produce address and Identity Document with photo identification in original which may be verified carefully and his / her identity established. Original ID and address proof must be scanned. 4. If the customer is Foreign National We can accept only valid Passport and Visa. In case of loss/theft of passport, the amount can be paid only if a copy of the FIR is provided along with a letter from the Consulate / Embassy of the Country concerned confirming the loss of passport of the person. 5. Make sure customer is above 18 years of age, if the customer is not completed 18 years of age, we are not supposed to make payment. 6. Before making the payment, the following mandatory details furnished in the TRM Form shall be verified and the correctness of the same confirmed from the Computer by accessing respective Money Transfer company software. In case of any queries or clarifications related to MTSS branch can call MTSS help desk team in Kochi ( /206/ 207 & ) o MTCN (Money Transfer Control Number) if available o Sender s Name o Country of origin (i.e., the Country wherefrom money is sent) o Amount expected (i.e., to be received) o Test question and the answer (if incorporated) 7. If all details in TRM form matches with data in the system we can make payment to the customer else, no Payment shall be made as it will result in Paid in Error making the Company liable for the same. 8. Confirm the customer not exceed 30 transactions in current Calendar Year.

5 9. Pay out should be made only through INR and not exceeded or euqalant USD 2500 per transaction. 10. For Indian national Up to Rs (Rupees Fifty thousand) or US dollar upto $2500 can be paid through cash. From Rs (Rupees Fifty thousand and one paisa) onwards paid only by local A/c Payee Cheques / Pay Orders / Demand Drafts / Fund Transfer to Beneficiary s bank account. On Medical emergency or for students for making fee payment, if the beneficiary brings original proof of Hospital records or school / college letters, we can pay cash above (subject to a maximum of amount equal to USD 2500) in cash. 11. If the receiver is foreign national with Tourist VISA we can make full payment in cash (subject to a maximum of amount equal to USD 2500). If the foreign national is under any other category of visa (business or student or any other ) we cannot pay cash above Rs If a customer comes to a branch for more than one transactions on a single day a) We can pay cash only if all transactions put together is less than or equal to b) If the transaction amount crosses then for the remaining transactions we need to issue cheque / DD or fund transfer to beneficiary. E.g. If customer comes for two transactions of Rs each on a single day, we can pay cash only for the first transaction of Rs and second can be paid only through cheque/dd/ Fund transfer. 12. Once the payment made to the customer copy of the TRM form and confirmation print out shall be properly filed and preserved as record for any verification by the Reserve Bank of India Officials or Company s Internal Auditors and or Inspecting Officials. 13. Once generated voucher for the transaction obtain customer signature on the voucher and file it for verification purpose. 14. The details of all the transactions undertaken, viz., Sender s name, Receiver s name, Amount of the remittance, Country of origin, MTCN etc shall be entered in our BRANCH MTSS ENTRY MODULE / software. APPLICABLE NORMS 1. An individual can receive only 30 transactions in a calendar year (January - December) Payout should be made in Indian Rupees only, not exceeding an equivalent of USD 2500/- per transaction.

6 2. Transactions only up to INR 50,000/- can be paid in cash; any amount greater than to INR 50,000/- should only be paid by way of account payee cheque / demand draft / Pay Order / Account Credit. 3. Remittances received should be for personal use only and NOT for trade / investments / property purchase or any commercial purposes. Donations to charitable institutions / trusts are NOT allowed. 4. Individuals can only receive money through MTSS. They are NOT allowed to SEND money through MTSS. 5. Payouts can be made ONLY to individuals, who are 18 years and above. Payouts cannot be made to firms / companies / trusts / societies etc. 6. Only in exceptional circumstances, where beneficiary is a foreign tourist (Foreign citizen with Tourist Visa), higher amounts can be paid in cash. (Need to take approval from MTSS back office for payment above INR in cash) or On Medical emergency or for students for making fee payment, if the beneficiary brings original proof of Hospital records or school / college letters, we can pay cash above (subject to a maximum of amount equal to USD 2500) in cash. 7. As per PMLA (Prevent Money Laundering ACT) and RBI guidelines, all MTSS transaction documents should be retained for a period of 10 years from the date of transaction. This includes TRM form, copies of self attested KYC documents (should contain signature of beneficiary), copy of crossed cheque and copy of valid visa issue (for foreigners). ADDITIONAL DUE DILIGENCE (ADD) Special attention needs to be provided to ensure that payouts meet the purpose of remittance requirement allowed under MTSS guidelines. Inward remittances through Overseas Principals should only be for family maintenance. Therefore adequate due diligence should be exercised to process transactions in instances where - There is seemingly no relationship between the receiver and the sender and/or - If they otherwise suspect that the remittance may not be for family maintenance. ADD guidelines are applicable to the states of Bihar and Jharkhand, Delhi, Rajasthan, Haryana, Uttar Pradesh, West Bengal and Jammu & Kashmir. ADD guidelines have to be followed where the remittances are originating from English speaking countries (e.g. USA, UK, Australia, Canada, New Zealand etc) and the senders are having Western/Anglo-Saxon names.

7 When is the ADDITIONAL DUE DILIGENCE (ADD) process required? The transactions with the above mentioned characteristics can be identified when: 1. A person of foreign origin (typically with a Western / Anglo-Saxon name) is sending money to an Indian (example: Michael Clarke sending to Babu Ram) where there is no apparent relationship between the sender and receiver. 2. A person of foreign origin (typically with a Western / Anglo-Saxon name) is sending money to a beneficiary in India who has a similar Western / Anglo-Saxon name. These beneficiaries may present local KYC identification documents (example: Michelle Stewart sending a remittance to Andrew Larsen, who presents Indian identification documents while collecting payouts in India) but do not appear to have any direct relationship with the sender. 3. A person of foreign origin (typically with a Western / Anglo-Saxon name) sending money to foreigners in India who are from a different nationality (example: John Clarke from US sending money to Ray Hard who presents an Australian passport). Branch should implement the below guidelines to ensure compliance to the ADD requirement: 1. The branches in the states of Delhi, Rajasthan, Haryana, Uttar Pradesh, West Bengal, Jammu & Kashmir, Bihar and Jharkhand should maintain the record of all payments made to foreign nationals in a register / xls file to track to keep track of the transactional history. The details should include name of the sender and also the send country. 2. Before making payment to the foreign national, the transactional history has to be verified and, if the foreign national has earlier received payment from other senders/ other countries, the branch should make proper inquiries from the foreign national as to why he is receiving the remittances from different senders/ different countries.

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9 IDENTIFICATION DOCUMENTS FOR INDIAN NATIONALS: Valid Passport Valid Driver's License issued by respective State Road Transport Authority in India. (Driving Licenses issued by foreign countries should not be accepted. Learner s License is not acceptable). Voter's Card PAN card (a separate address proof should be collected from the beneficiary) Employee id of Armed Forces & paramilitary services Central / State Government employee ID card Employee id of RBI, SEBI, TRAI & IRDA FOR FOREIGN NATIONALS: Valid Passport with valid visa (Driving Licenses and other in-country identification documents cannot be accepted as a primary identity proof document could be accepted as additional ids) Valid Refugee card. DO S AND DON TS 1. Always sight original id and validate the beneficiary before making payment. 2. Always closely examine identification presented and ask for a 2 nd form of ID if the Primary ID presented looks suspicious 3. Ensure a copy of the Id document and address proof is collected for every transaction Ensure copies collected for each transaction is self-attested by the beneficiary at the time of transaction. 4. Probe consumers on the relationship with the sender. 5. Ensure that the receiver comes personally to collect the payment please do not make payment to third-parties. 6. Ensure Additional Due Diligence is conducted if there exists no apparent relationships between sender and receiver. 7. Question the recipient if address not in vicinity of the paying location 8. Record any additional information collected from the beneficiary on the To Receive Money (TRM) form so that this is available on record.

10 Do Not Make Payment If 1. You suspect the transaction is fraudulent. 2. Original identification documents are not provided for validation. 3. The transaction does not appear to be for personal/family maintenance. Always look out for following suspicious activity / behaviour: Payees do not provide their original photo identification document for validation. Transactions conducted by a group of individuals. Payees frequently receive transfers from multiple senders. Payees receive money using different KYC ids documents Payees appear nervous or anxious / Submitted IDs have expired and / or look altered or modified. Payees who reside at addresses not in the vicinity of the paying locations COMPETITOR ANALYSIS Muthoot Finance services are carried out from the following associates: Western Union Money Gram Xpress Money Instant Cash EzRemit Transfast Royal Money Muthoot Global and Muthoot Finance s own branches abroad

11 FREQUENTLY ASKED QUESTIONS 1. State the MTCN/SECURITY NUMBER of western union? EzRemit 12 Digits Western Union 10 Digits Money Gram 8 Digits Xpress Money 16 Digits Trans Fast 13 Alpha numeral Instant cash 9 Digits 2. What is the procedure to be followed if the foreign national loses his passport? In case of loss/theft of passport, the amount can be paid only if a copy of the FIR is provided along with a letter from the Consulate / Embassy of the Country concerned confirming the loss of passport of the person. 3. Before making the payments, which all details have to be furnished to verify the correctness? o The following has to be checked:- MTCN (Money Transfer Control Number) if available Sender s Name Country of origin (i.e., the Country wherefrom money is sent) Amount expected (i.e., to be received) Test question and the answer (if incorporated) 4. What is the maximum number of transaction which a person can make in a year? 30 transactions in a calendar year. 5. Riya receives Rs from Muthoot Fincorp Poojapura branch through western union money transfer. Should she be paid the entire amount in cash? No, Riya can t be paid Rs 60,000 in cash. For Indian national Up to Rs we can make cash payment. From Rs50000 onwards paid only by local A/c Payee Cheques / Pay Orders / Demand Drafts / Fund Transfer to Beneficiary s bank account. 6. If customer comes for two transactions of Rs each on a single day, what is the procedure to be followed? If customer comes for two transactions of Rs each on a single day, we can pay cash only for the first transaction of Rs and second can be paid only through cheque/dd/ Fund transfer. 7. What will be the cash payout limits for beneficiary's who have Refugee status? The treatment will be the same as resident Indians since they are not tourists. Payments in cash can only be made up to INR 50,000.

12 8. Can a Nepali/Bhutanese customer be paid based on their respective countries National Identity Card? They are not required to obtain a visa to enter India, and are also not required to carry a passport. 9. What is to be obtained as valid identity proof from these nationals? MTSS transaction can be paid out to such nationals on production of a valid passport issued by the Nepali/Bhutanese governments. No other document is currently accepted for processing MTSS transactions. 10. Do I need to check if the signature on the ID document tallies with the signature on the TRM form? Yes, it is critical to ensure that the signature on the TRM form tallies with the one in the Id document. 11. What is the full form of ACR? Automated Computerized Receipt (print out containing transaction details handed to customer by Agent after payout) 12. What is the full form of PMLA? Prevention of Money Laundering Act, 2002 and subsequent Amendments. 13. What is the maximum amount for a foreign citizen in India under Student Visa can get in cash through MTSS? Rs 50000/ Receive form after getting signature from the beneficiary have to keep in branch for.. period 10 years 15. What is the maximum amount for a foreign citizen in India Under tourist visa can get in cash through MTSS? Equivalent of USD The details of all the transactions undertaken, viz., Sender s name, Receiver s name, Amount of the remittance, Country of origin, MTCN etc shall be entered in. Web based application: muthootapps.com 17. How can make payment In case a foreigner has lost his passport/refugee card? Can pay with copy of docs with police FIR copy 18. Transfast has. Digit as its security code, which the beneficiary brings for receiving money. Alpha numeric and 12 Digit number from Saudi Arabia

13 19. What is the maximum amount for a foreign citizen in India under Business Visa can get in cash through MTSS? Rs /- 20. If the customer comes for two transactions of Rs each. Please let me know the mode of payment? First transaction has to be through Cash and Second transaction thru cheque payment.