MUMBAI: In a bid to stop fraudsters from utilizing the cash switch route for laundering, RBI has tightened guidelines for cash transfers and has requested banks to acquire KYC particulars of remitters and beneficiaries.
Earlier, RBI’s cash switch guidelines allowed walk-in clients with out financial institution accounts to switch funds topic to a transaction restrict of Rs 5,000 and month-to-month cap of Rs 25,000 per remitter.The brand new guidelines specify that remitting banks and enterprise correspondents should register the remitter primarily based on verified mobile phone quantity and a self-certified ‘formally legitimate doc (OVD)’ in keeping with up to date KYC instructions.
The brand new guidelines additionally introduce a further issue authentication for each transactions. RBI has requested banks and enterprise correspondents to adapt to the provisions of the I-T Act and embody remitter particulars as a part of the IMPS/NEFT transaction message, figuring out the transaction as a money primarily based remittance.
“There was vital improve within the availability of banking retailers, developments in cost techniques for funds transfers, and ease in fulfilling KYC necessities and so on., since then; and now customers have a number of digital choices for funds switch,” RBI stated. . RBI has stated that adjustments will come into impact from Nov 1, 2024.
RBI’s measures are a part of an initiative to fight using banking channels for transferring fraudulent proliferation of on-line fraud throughout the nation. Fraudsters deceive clients into transferring funds to third-party accounts, that are subsequently withdrawn utilizing cash mules.
Earlier, RBI’s cash switch guidelines allowed walk-in clients with out financial institution accounts to switch funds topic to a transaction restrict of Rs 5,000 and month-to-month cap of Rs 25,000 per remitter.The brand new guidelines specify that remitting banks and enterprise correspondents should register the remitter primarily based on verified mobile phone quantity and a self-certified ‘formally legitimate doc (OVD)’ in keeping with up to date KYC instructions.
The brand new guidelines additionally introduce a further issue authentication for each transactions. RBI has requested banks and enterprise correspondents to adapt to the provisions of the I-T Act and embody remitter particulars as a part of the IMPS/NEFT transaction message, figuring out the transaction as a money primarily based remittance.
“There was vital improve within the availability of banking retailers, developments in cost techniques for funds transfers, and ease in fulfilling KYC necessities and so on., since then; and now customers have a number of digital choices for funds switch,” RBI stated. . RBI has stated that adjustments will come into impact from Nov 1, 2024.
RBI’s measures are a part of an initiative to fight using banking channels for transferring fraudulent proliferation of on-line fraud throughout the nation. Fraudsters deceive clients into transferring funds to third-party accounts, that are subsequently withdrawn utilizing cash mules.
