The Reserve Bank of India (RBI) have announced domestic money transfer relaxation for small money transfers. The new guidelines issued by the RBI have made changes in the cash pay out, cash pay in and card to card transfer schemes.
As of now only banks are allowed to initiate money transfers in the country subject to the adherence of KYC/AML guidelines. As a result a big number of individuals suffers, especially the migrant population who do not have access to the formal banking channel to transfer funds back home, because of lack of identity and address proofs. These new guidelines will facilitate such individuals to remit funds to back home even without having bank account.
Therefore, the Reserve Bank of India has liberalized the fund transfer guidelines. The relaxation falls under the following three categories:-
- Cash Pay Out Scheme :- RBI have liberalized the cash pay out scheme under which bank customers can transfer money from their bank account to the recipients who are not having bank account. Cash can be delivered to the recipient in cash through an agent appointed as business correspondent.
- Now as per new RBI guidelines the amount of transfer has been increased from Rs 5000 to Rs 10,000 per transaction subject to a monthly cap of Rs 25,000 per beneficiary.
- Now as per new RBI guidelines a walk in customer can also transfer funds to the bank account of the beneficiary through BCs or ATMs etc. upto a maximum amount of Rs 5000 per transaction with a monthly cap of Rs 25,000.
- As per the new RBI guideline Debit /Credit /Pre paid cards can also be used for card to card transfer upto a maxim limit of Rs 5000 per transaction with a monthly cap of Rs 25,000.