SME Times is powered by   
Search News
Just in:   • EAM Jaishankar dials counterparts in Asia and Europe, discusses strikes on Pak-based terror camps  • Iran rejects report of proposing direct talks with US  • Singapore issues travel advisory asking citizens to avoid J&K, Pak  • US: Two injured, suspect dead after shooting at Florida pharmacy store  • 430 flights cancelled, 27 airports to remain shut till May 10 
Last updated: 24 Jul, 2024  

RBI.logo.Thmb.9.jpg RBI tightens rules for domestic money transfers

RBI.9.jpg
   Top Stories
» Sensex, Nifty open nearly flat as geopolitical tensions continue
» Sensex, Nifty gain in early trade as India carries out ‘Operation Sindoor’
» India, UK finalised free trade deal, says PM Modi
» Moody’s pegs India’s GDP growth at 6.3 per cent for 2025
» Nifty, Sensex open higher; Adani Ports among top gainers
IANS | 24 Jul, 2024

The Reserve Bank of India (RBI) has tightened the framework for domestic money transfers in order to keep track of both cash pay-in and pay-out services.

In a circular issued on Wednesday, the RBI stated that in the case of cash pay-out service, the remitting bank shall obtain and keep a record of the name and address of the beneficiary.

The circular also mentioned that in the case of cash pay-in service, the remitting banks or business correspondents shall register the remitter based on a verified cell phone number and a self-certified 'Officially Valid Document (OVD)' as per the Master Direction – Know Your Customer Direction 2016, as amended from time to time.

Every transaction by a remitter will also have to be validated by an Additional Factor of Authentication (AFA).

"Remitting banks and their business correspondents shall conform to provisions of the Income Tax Act, 1961 and the rules/ regulations framed thereunder (as amended from time to time), pertaining to cash deposits," the circular states.

The remitter bank shall include remitter details as part of the IMPS/NEFT transaction message, it added.

The transaction message will have to include an identifier to identify the fund transfer as a cash-based remittance.

The RBI also stated that the guidelines on card-to-card transfers are excluded from the purview of the DMT framework and shall be governed under the guidelines granted for such instruments.

The RBI explained that since the framework for Domestic Money Transfer (DMT) was introduced in 2011, there has been significant increase in the availability of banking outlets, developments in payment systems for funds transfers, and ease in fulfilling KYC requirements, etc. Now, users have multiple digital options for fund transfer.

The RBI said that the changes are being introduced following a review that was undertaken recently of various services facilitated in the current framework.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter