RBI mandates payment of inward remittances on same business day

Why in news

The Reserve Bank of India (RBI) mandated banks to credit inward remittances to beneficiary accounts within one hour to improve efficiency and reduce delays.

Background

The RBI requires banks to reconcile and confirm credits in their nostro accounts on a near real-time basis or at intervals not exceeding one hour. A six-month deadline has been set for the full implementation of the one-hour credit mandate.

Facts for Prelims

• FactIndia is the world's largest recipient of remittances, with over $135 billion expected by 2025
• FactThe mandate requires inward remittances to be credited to beneficiary accounts within one hour

For Mains

Q. Discuss how streamlining the remittance infrastructure can enhance India's position as a global hub for inward capital flows and improve financial inclusion.

Dimensions to cover in your answer

• Operational efficiency: Reducing settlement delays through near real-time nostro account reconciliation
• Global competitiveness: Enhancing the speed of cross-border payments to maintain India's lead in remittance inflows

Keywords: Remittance · Nostro Accounts · Real-time Settlement · Financial Infrastructure · Monetary Regulation

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