RBI allows money transfer directly into beneficiaries’ bank accounts

The Reserve Bank of India (RBI), on Tuesday, decided to allow foreign inward remittances received under money transfer service scheme (MTSS) directly into the bank account of the beneficiary through electronic modes such as national electronic funds transfer (NEFT) and immediate payment service (IMPS).

However, the RBI said that the recipient bank would credit the amount transferred by the partner bank only to KYC (know-your-customer) compliant bank accounts.

Further, it said, with regard to bank accounts that are not KYC compliant, “the recipient bank shall carry out KYC/CDD (customer due diligence) of the recipient before the remittance to such account is credited or allowed to be withdrawn.”

The RBI also instructed that the partner bank should appropriately mark the direct-to-account remittances to indicate to the recipient bank that it is a foreign inward remittance.

Electronic message

“The partner bank shall ensure that accurate originator information and necessary beneficiary information is included in the electronic message while transferring the fund to the recipient bank,” the RBI said.

“The partner bank should add an appropriate alert in the electronic message indicating that this is a foreign inward remittance and should not be credited to KYC non-compliant and NRE/NRO account,” the RBI added.

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Printable version | Apr 3, 2020 5:56:36 AM |

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