Money coming from abroad will become credit within a day, RBI has made a big change in the rules
Under new directives from the Reserve Bank of India, remittances from abroad will now be credited to accounts on the same day. This will speed up transactions, reduce delays, and provide greater transparency and convenience to customers.
The delay in receiving money from abroad is soon to end. In a major decision, the Reserve Bank of India (RBI) has directed banks to credit customers' accounts on the same day as international transactions. This move aims to provide better convenience to the public and strengthen India's payment system globally.
Until now, when someone sent money from abroad, it often took a day or two or even longer to arrive in their account.
This caused inconvenience to people, especially those who depend on this money for their families or businesses. The RBI has implemented this new rule to address this problem.
Now, according to the new rule, if a bank receives foreign money, i.e., inward remittances, during foreign exchange market hours,
they must be credited to the customer's account on the same day. If the money arrives after market hours, it must be credited on the next working day. However, all these transactions will be subject to FEMA regulations.
These changes also took place
The RBI has not only set a deadline for crediting funds, but has also instructed banks to immediately inform customers of incoming funds from abroad.
If this information is received after banking hours, the customer must be informed by the beginning of the next working day. This will provide customers with a clear understanding of their financial status.
Furthermore, the RBI has also emphasized improving banking practices.
Currently, many banks reconcile their accounts at the end of the day, which causes delays. They have now been asked to update this process in real time, or at least every hour, to ensure faster crediting.
Banks have also been instructed to strengthen their systems in terms of technology. The RBI wants banks to create digital platforms where customers can track their transactions, submit necessary documents, and view statuses in real time.
Banks have also been advised to adopt automated systems like STP. This will allow funds to be transferred directly to customer accounts without any manual intervention, saving time and reducing the likelihood of errors.
This new rule will come into effect six months after its issuance, giving banks time to update their systems. This directive was issued under the Payment and Settlement Systems Act 2007.
This move by the RBI will bring relief to millions of people who receive remittances from abroad. This will not only speed up transactions but also increase transparency and trust.