RBI Updates Domestic Money Transfer Framework... published at LexSonic.

RBI Updates Domestic Money Transfer Framework.

The RBI has updated the Domestic Money Transfer (DMT) framework, effective November 1, 2024. Key changes include:

1. For Cash Pay-out: Banks must record the beneficiary’s name and address.

2. For Cash Pay-in:

- Remitters must be registered with a verified phone number and valid ID.

- Transactions require Additional Authentication (AFA).

- Compliance with Income Tax regulations is required.

- Remitter details must be included in IMPS/NEFT messages.

- Transactions will include a cash-based remittance identifier.

3. Card-to-Card Transfers: These are excluded from the DMT framework and will follow separate guidelines.

4. Existing Instructions: Previous rules, including transaction limits, remain in effect.

These updates aim to enhance the security and efficiency of domestic money transfers.