RBI Update: The Reserve Bank of India (RBI) has tightened the rules related to cash payment service in banks. This has made it necessary for lenders to keep a record of recipients. Here cash payment means the system of transferring money from bank accounts to those beneficiaries.
Who do not have a bank account. According to PTI news, the Reserve Bank of India (RBI) has revised its October 2011 framework related to ‘domestic money transfer’.
New rules will come into effect from November 1
According to reports, the new rules will come into effect from November 1, 2024.
The revised framework for cash payment service states that the sending bank will obtain and maintain a record of the name and address of the beneficiary. In case of cash payment service.
RBI said the sending bank/business correspondent (BC) shall register the sender based on verified cell phone number and self-attested ‘officially valid document (OVD)’ as per Know Your Customer (KYC) directions.
Every transaction should be validated by AFA The new norms also state that every transaction made by the sender should be validated by an additional factor of authentication (AFA).
Further, the sending bank should include the details of the sender as part of the IMPS/NEFT transaction message, RBI said. However, guidelines related to card-to-card transfers have been left out of the scope of the framework.
