look news india
The Reserve Bank of India has tightened the norms related to cash payment services in banks. For this, it is necessary to keep a record of the lender and the recipient. This cash payment refers to the arrangement of transferring money from bank accounts to those beneficiaries who do not have a bank account. According to the information, the Reserve Bank of India (RBI) has changed its October-2011 framework related to domestic money transfer.
The new rule comes into effect from November 1
According to the information, the new rules will come into effect from November 1, 2024. The revised framework for cash payment service asks the remitter bank to obtain and maintain a record of the name and address of the beneficiary. Regarding the cash payment service, the RBI said that the remitter can authenticate his customer over the phone as per KYC guidelines.
Every transaction must be approved by the AFA
The new norm also states that all transactions made by the acquirer must be validated by a certified AFA. RBI said that in addition, the sending bank should include the details of the sender as part of the IMPS or NEFT transaction message. However, it has excluded guidelines related to card-to-card transfers from the scope of the framework.