July 09, 2025 01:23 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Indian nurse Nimisha Priya, on death row for murder in Yemen, to be executed on July 16 | Fatal Air India plane crash preliminary report submitted to government | MNS workers out to oppose protests against slapgate incident detained | Social media influencer files complaint against MNS leader's son for ramming car into her vehicle in drunken state | Bihar businessman Gopal Khemka murder accused killed in police encounter in Patna | PM Modi meets Uruguay President on sidelines of 17th BRICS Summit in Rio de Janeiro | PM Modi meets Bolivian President on the sidelines of BRICS in Rio de Janeiro | Supreme Court refuses interim stay on Election Commission's voter list revision drive in Bihar, hearing on Thursday | Khalistani terrorist Harpreet Singh alias Happy Passia, responsible for terror attacks in Punjab, brought to India from US: Report | Calcutta HC dismisses medical council's order suspending TMC leader Dr. Santanu Sen
Photo Courtesy: Pixabay

RBI changes regulatory framework for domestic money transfer services

| @indiablooms | Jul 25, 2024, at 05:02 am

Mumbai: The Reserve Bank of India (RBI) has updated the regulatory framework for domestic money transfer services, tightening Know Your Customer (KYC) requirements for regulated entities.

This revision follows a recent review of payment transfer services.

The new rules require remitting banks to collect and retain the name and address of beneficiaries for cash payouts, as communicated by the RBI to authorized payment system operators.

Each transaction by a remitter must now include an additional factor of authentication (AFA).

Initially introduced in 2021, the regulations aimed at the domestic money transfer segment have been updated to reflect the growth in banking outlets, advancements in payment systems, and easier KYC compliance.

With numerous digital fund transfer options available, the RBI mandates that remitting banks and business correspondents (BCs) register remitters using a verified cell phone number and a self-certified 'officially valid document' (OVD).

Furthermore, remitting banks must include remitter details in the IMPS/NEFT transaction messages, and these messages should clearly identify cash-based remittances.

Remitting banks and BCs must adhere to the provisions of the Income Tax Act, 1961, and related rules regarding cash deposits.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
RBI announces repo rate cut Jun 06, 2025, at 10:51 am
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm
Close menu