August 17, 2026 07:34 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
After SC rebuke, BCI chief apologises to NALSAR students over enrolment freeze row | Independence Day: PM Modi’s big youth pitch— AI training, free coaching amid exam row and job concerns | ‘Shakti Ki Saptadhara’: Modi reveals 7 pillars to power India’s next leap in his I-Day speech from Red Fort | West Bengal STF arrests 3 more suspected Pakistani spies in Cooch Behar | Bengal man arrested in Bengaluru over terror links, Afghanistan travel plan | Ajit Doval breaks silence on Operation Sindoor in Discovery’s explosive new docuseries | Rahul Gandhi's 'mock hug' taunt sparks row; Centre stresses 'mutual respect' with Italy | Delhi on high alert: Bomb threat to High Court, airport and multiple locations ahead of I-Day | ‘Who are they to interfere?’: CJI Surya Kant slams Bar Council of India over NALSAR students’ enrolment row | 'Shows how low Congress has sunk': BJP slams Rahul Gandhi over Modi foreign policy jibe
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.