RBI makes changes in NEFT, RTGS for daily reporting of foreign remittances: With the Home Ministry mandating SBI to report all details of overseas donors, including the purpose of remittances on a daily basis, the Reserve Bank of India (RBI) on Thursday made necessary changes in NEFT and RTGS systems for Foreign Contribution (Regulation) Act (FCRA) related transactions.
February 2023 Current Affairs Quiz
Under the FCRA, foreign contributions must be received only in the “FCRA account” of 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.
In a circular, the RBI said in terms of extant requirements of the Ministry of Home Affairs (MHA), the donor details such as name, address, country of origin, amount, currency, and purpose of remittance are required to be captured in such transactions and SBI is required to report the same to MHA on daily basis. RBI has asked banks 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.
