RBI's New Money Transfer Rules: Key Changes for Safer Transactions from November 1

New Money Transfer Rules: Prime Points To Note

Below are the key points regarding the money transfer rules:-

Enhanced KYC Standards

• Beneficiary details such as their names and addresses have to be collected and maintained by banks for all cash transfers to enhance the relationship between the transfer and the beneficiary.

• This takes about 1-2 working days to complete as the verification of the remitter details submitted by the customer through their account information is done.

Verifying The Remitter Details

• To ensure that a remitter’s mobile number is not fake, both the banks and the Business Correspondents (BCs) have to ensure that they verify the documentation that is produced by the remitter.

Mandatory Registration For Remitters

• Remitters in this country are required to register with the AFAS simply because they are remitters who transact through cash pay-in services and must provide a valid phone number for registration and an OVD according to RBI’s KYC norms.

Secondary Authentication for Transaction

• AFA means that every transaction from the remitter side will provide another layer of security in the form of an additional factor of authentication.

Compliance With The Income Tax Rules

• Regarding the cash deposit, both the remitting banks and BC must follow the rule provided in the Income Tax Act.

Clear Transaction Messaging

• Transaction messages of remitter banks using IMPS, NEFT, and other methods must contain the remitter’s details. This means that cash-based transactions will now give rise to certain markers, which will facilitate their tracking.

Updated Cash Pay-out Limits

• As for transfers with cash pay-out, the cap has been increased from ₹1,500 to ₹10,000 per transaction and ₹10,000 in a month.