Worker remittances and money transfer service scheme (MTSS): The Royal Bank of Scotland

Abstract

India is expected to be the top recipient of remittances from its Diaspora in 2012, according to a World Bank report. The country is set to receive about $70 billion by the end of the year, with China coming second with remittances of $66 billion, according to the study. With this rising trends, a lot of banking and non-banking companies are vying to control and benefit from the growing pie of remittance market. This document discusses the general trend in workers’ remittances. Specifically data and analysis about various players in the remittance markets across multiple corridors and their cost effectiveness in terms of money transfer is dealt with. An excel object is attached that provides detailed information for $500 transfer from various corridors to India. Further Money Transfer Operators who facilitate these money transfers are discussed from an operational point of view. Finally regulation with respect to Money Transfer Service Scheme provided by RBI to be followed by all MTOs operating out of India has been discussed in detail Various mandatory compliance/regulatory procedures in the remittance business are to be followed including (but not limited to)