In banking, you must have definitely come across two words – FCRA and MTSS. In this article, we will have a look at both these words.
1. FCRA Transaction
FCRA stands for Foreign Contribution (Regulation) Act, 2010. It is an Indian law that regulates the acceptance and utilization of foreign funds or hospitality by individuals, associations, and companies. Enacted to protect national security, it ensures foreign donations do not adversely affect India’s sovereignty or internal security. If any transaction involves selecting FCRA as Yes or No, then:
- Select Yes if the transaction involves a foreign contribution received by an organisation that is registered or permitted under the FCRA.
- Select No for normal domestic transactions or if the payment is not a foreign contribution.
Examples:
- Donation from a foreign citizen to an NGO → Yes
- Salary, pension, domestic transfer, or normal remittance → No
2. MTSS Transaction
MTSS stands for Money Transfer Service Scheme. It is a scheme under which money is sent from abroad to beneficiaries in India through authorised money transfer companies (such as Western Union, MoneyGram, etc.).
If any transaction involves selecting MTSS as Yes or No, then:
- Select Yes if the transaction is an inward remittance under the MTSS scheme.
- Select No if it is not an MTSS remittance.
Examples:
- A person receives money in India from a relative abroad through Western Union → Yes
- NEFT, RTGS, IMPS, UPI, cash deposit, or normal bank transfer → No
In most bank branch transactions
For normal account opening, cash deposit, withdrawal, NEFT/RTGS, IMPS, DD, cheque, or regular banking transactions:
- FCRA Transaction: No
- MTSS Transaction: No
These options should only be marked Yes when the transaction specifically falls under FCRA or the Money Transfer Service Scheme.
