Cash Payment Rules: Here cash payment means the arrangement for transferring funds from bank accounts to beneficiaries who do not have a bank account. For cash payment service, the revised framework states that the remitting bank will obtain and maintain a record of the name and address of the beneficiary.
Cash Payment Rules: The Reserve Bank of India (RBI) has tightened the norms related to cash payment service in banks. This has made it necessary for lenders to keep a record of recipients. Here cash payment means the system of transferring money from bank accounts to those beneficiaries who do not have a bank account. According to PTI news, the Reserve Bank of India (RBI) has revised its October 2011 framework related to ‘domestic money transfer’.
New rules will be applicable from November 1
According to the news, the new rules will come into effect from November 1, 2024. For cash payment service, the revised framework states that the sending bank will obtain and maintain a record of the name and address of the beneficiary. In the case of cash payment service, the RBI said that the sending bank / business correspondent (BC) will register the sender on the basis of verified cell phone number and self-certified ‘officially valid document (OVD)’ as per Know Your Customer (KYC) instructions.
Every transaction should be validated by AFA
The new norm also states that every transaction made by the sender should be validated by Additional Factor of Authentication (AFA). RBI said that in addition, the sending bank should include the details of the sender as part of the IMPS / NEFT transaction message. However, the guidelines related to card-to-card transfer have been kept out of the scope of the framework.
