RBI Clarifies on “Exclusive Agreements” on Money Transfer


In a Circular to All Authorised In-bound Money Transfer Service providers, has clarified that Overseas money transfer agents cannot enter into any 'exclusive' arrangement with Indian entities for transfer of funds into the country,

In a Circular to All Authorised In-bound Money Transfer Service providers,Reserve Bank of India(RBI) has clarified that Overseas money transfer agents cannot enter into any 'exclusive' arrangement with Indian entities for transfer of funds into the country,
since such arrangement "limits competition, distort pricing and thereby act as a deterrent to a payment system from achieving the desired goal of efficiency and affordability"

The exclusivity arrangement, it said, would have prohibited Indian agents and sub-agents from undertaking similar services on behalf of other overseas money transfer agents.

Making it more clear, the communication emphasized that all new agreements and those due for renewal should not have any exclusivity clause.


Comments

No responses found. Be the first to comment...


  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name:
    Email: