RBI Tightens Cash Pay-out Norms at Banks: New Rules for November 2024
By Rediff Money Desk, Mumbai Jul 24, 2024 19:33
The Reserve Bank of India (RBI) has tightened norms for cash pay-out services at banks, making it mandatory for lenders to record recipients' details. Learn about the new rules and their impact.
![RBI Tightens Cash Pay-out Norms at Banks: New Rules for November 2024](https://im.rediff.com/news/2016/nov/30jan.jpg)
Mumbai, Jul 24 (PTI) The RBI on Wednesday tightened norms related to cash pay-out service at banks, making it mandatory for lenders to keep a record of recipients.
Cash pay-out refers to arrangements for amounts being transferred out of bank accounts to beneficiaries not having a bank account.
The Reserve Bank of India (RBI) has revised its October 2011 framework related to 'Domestic Money Transfer'.
The new norms will come into effect from November 1, 2024.
For cash pay-out service, the revised framework said, "The remitting bank shall obtain and keep a record of the name and address of the beneficiary".
In case of cash pay-in service, the RBI said remitting banks/ business correspondents (BCs) will register the remitter based on a verified cell phone number and a self-certified officially valid document (OVD)' as per the know your customer direction.
Also, every transaction by a remitter should be validated by an additional factor of authentication (AFA).
Futher, remitter bank should include remitter details as part of the IMPS / NEFT transaction message, the RBI said.
The guidelines on card-to-card transfer are excluded from the purview of the framework.
Cash pay-out refers to arrangements for amounts being transferred out of bank accounts to beneficiaries not having a bank account.
The Reserve Bank of India (RBI) has revised its October 2011 framework related to 'Domestic Money Transfer'.
The new norms will come into effect from November 1, 2024.
For cash pay-out service, the revised framework said, "The remitting bank shall obtain and keep a record of the name and address of the beneficiary".
In case of cash pay-in service, the RBI said remitting banks/ business correspondents (BCs) will register the remitter based on a verified cell phone number and a self-certified officially valid document (OVD)' as per the know your customer direction.
Also, every transaction by a remitter should be validated by an additional factor of authentication (AFA).
Futher, remitter bank should include remitter details as part of the IMPS / NEFT transaction message, the RBI said.
The guidelines on card-to-card transfer are excluded from the purview of the framework.
Source: PTI
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