The delay in receiving money from abroad is going to end soon. Taking a major decision, the Reserve Bank of India (RBI) has instructed the banks that the money coming through foreign transactions should now be deposited in the customer’s account on the same day. The purpose of this step is to provide better facilities to the people and strengthen India’s payment system at the world level.
What used to happen till now was that when a person sent money from abroad, it sometimes took a day or two or more for it to reach the account. This caused problems to people, especially those who depend on this money for their family or business. Keeping this problem in mind, RBI has implemented this new rule.
Now according to the new rule, if the bank receives foreign money i.e. inward remittance during the foreign exchange market hours, then it will have to be deposited in the customer’s account on the same day. If the money arrives after market hours, it will need to be credited on the next working day. However, all these transactions will be as per FEMA rules only.
These changes also happened
RBI has not only fixed the time limit for credit of money, but has also asked the banks that as soon as they get information about money coming from abroad, they should immediately inform the customer. If this information is received after banking hours, the customer will be required to provide the information at the beginning of the next working day. With this, customers will be able to get clear information about their money status. Apart from this, RBI has also emphasized on improving the functioning of banks. Currently many banks reconcile their accounts at the end of the day, which causes delays. Now they have been asked to update this process in real-time or at least every hour, so that the money can be credited quickly.
In terms of technology also, banks have been instructed to strengthen their systems. RBI wants banks to create such digital platforms where customers can track their transactions, submit necessary documents and see the status in real time. Also, banks have been advised to adopt automated systems like STP. With this, the money will be directly transferred to the customer’s account without any manual intervention, which will save time and also reduce the chances of mistakes.
This new rule will come into effect six months after its issuance, so that banks can get time to update their systems. This instruction has been issued under the Payment and Settlement Systems Act 2007. This step of RBI will bring relief to millions of people who receive money from abroad. This will not only speed up transactions but will also increase transparency and trust.
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