RBI releases Guidelines to facilitate faster cross-border inward payments

The Reserve Bank of India (RBI) has released guidelines to facilitate faster cross-border inward payments. The guidelines are as given below:

1. Banks shall inform their customer of the receipt of cross-border inward transactions immediately on receipt of inward message. Messages received after close of operating hours of banks shall be informed to customer immediately at the start of the next business day.
2. It is observed that several banks rely upon end-of-day statements of the nostro account for confirming and reconciling receipts in nostro accounts, resulting in delay in crediting funds to the beneficiary’s account. To expedite this process, banks are advised to undertake reconciliation and confirmation of credit in the nostro account frequently either on near real time basis or at periodic intervals. The reconciliation interval should normally not exceed one hour.
3. Banks shall endeavour to credit the inward payments received during the foreign exchange market hours within the same business day to the beneficiary’s account, and credit the inward payments received after market hours on the next business day, subject to compliance with the extant FEMA and other regulatory requirements.
4. Banks may, based on their risk assessment and subject to compliance with extant FEMA guidelines, put in place straight through process for crediting the inward payments to the account of individual residents.
5. Banks may, within a reasonable time frame, endeavour to provide digital interface to their customers to facilitate foreign exchange transactions, including submission of documents or information, and monitoring of transactions.

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