Introduction: In a recent development, the Reserve Bank of India (RBI) issued Circular No.15 on March 5, 2024, impacting all Authorised Persons acting as Indian Agents under the Money Transfer Service Scheme (MTSS). The circular introduces a crucial shift in reporting practices, necessitating compliance with the Centralised Information Management System (CIMS). This article explores the key aspects of the circular, shedding light on the updated reporting requirements and the significance of the new CIMS portal.
Detailed Analysis: The circular, building on the foundation laid by A.P. (DIR Series) Circular No.70 dated May 19, 2016, mandates a quarterly statement submission on the quantum of remittances received through MTSS. What sets this circular apart is the transition to the Centralised Information Management System (CIMS) portal, marking a significant leap in data management for the Reserve Bank.
As of the quarter ending March 2024, the reporting responsibility, formerly under the eXtensible Business Reporting Language (XBRL) platform, has now shifted to the CIMS portal (URL: https://sankalan.rbi.org.in/). The designated return code for this statement on CIMS is ‘R130.’ It’s noteworthy that even if no remittance occurs during a quarter, a ‘NIL’ report must be submitted to maintain compliance.
To facilitate seamless adaptation, the Master Direction on ‘Reporting under Foreign Exchange Management Act, 1999’ is being updated to incorporate these changes. This ensures that the regulatory framework aligns with the technological advancements introduced by RBI in the form of the CIMS portal.
Conclusion: The RBI’s Circular No.15 heralds a new era in reporting practices for MTSS, emphasizing efficiency and precision through the adoption of the CIMS portal. Indian Agents under MTSS must promptly adjust their reporting mechanisms to comply with the updated directive. As the regulatory landscape evolves, staying abreast of such changes becomes imperative for financial entities, ensuring not only compliance but also smooth operations within the framework of the Foreign Exchange Management Act, 1999. The RBI’s commitment to modernizing data management reflects its proactive stance in fostering a robust financial ecosystem. Entities are encouraged to embrace these changes and submit reports diligently on the CIMS portal to uphold regulatory integrity.
***
RBI/2023-24/130
A.P. (DIR Series) Circular No.15
March 05, 2024
To
All Authorised Persons, who are Indian Agents under Money Transfer Service Scheme
Madam / Sir,
Money Transfer Service Scheme – Submission of Statement on CIMS
Please refer to the A.P. (DIR Series) Circular No.70 dated May 19, 2016, wherein all Authorised Persons who are Indian Agents under the Money Transfer Service Scheme (MTSS) were required to submit a quarterly statement (within 15 days from the close of the quarter to which it relates) on the quantum of remittances received through MTSS using the eXtensible Business Reporting Language (XBRL) platform.
2. With the launch of the Reserve Bank’s next generation data warehouse viz., the Centralised Information Management System (CIMS), it has been decided that the reporting of the aforesaid statement will be done on CIMS portal (URL: https://sankalan.rbi.org.in/) with effect from the quarter-ending March 2024. The statement has been assigned return code – ‘R130’ on CIMS. In case no remittance was received during a quarter, a ‘NIL’ report shall be submitted.
3. The Master Direction on ‘Reporting under Foreign Exchange Management Act, 1999’ is being updated to reflect the changes.
4. The directions contained in this circular have been issued under section 10(4), 11(1), and 11(2) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Puneet Pancholy)
Chief General Manager
