RBI updates rules for overseas transactions via NEFT and RTGS route - Check details

The Reserve Bank of India (RBI) has updated the Foreign Contribution (Regulation) Act (FCRA) for NEFT and RTGS in foreign transactions on February 16 and mandated that foreign contributions must be received only in the “FCRA account” of the State Bank of India (SBI), New Delhi Main Branch (NDMB). 

The contributions to the FCRA account are received directly from foreign banks through SWIFT and from Indian intermediary banks through NEFT and RTGS systems. The instructions will be effective from March 15, 2023.  

As per the mandate of the Ministry of Home Affairs (MHA), Government of India, the donor details such as name, address, country of origin, amount, currency, and purpose of remittance are required to be captured in such transactions, stated the central bank in its circular. SBI is required to report the same to MHA on daily basis.

Member banks have been advised to incorporate necessary changes in their core banking/middleware solutions to capture the requisite details while forwarding the foreign donations through NEFT and RTGS systems to SBI.

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