Home   »   Banking Current Affairs 2023   »   RBI: Introduction of Foreign Contribution (Regulation)...

RBI: Introduction of Foreign Contribution (Regulation) Act (FCRA) related transaction code in NEFT and RTGS Systems

Reserve Bank of India vide its Circular dated 16th February, 2023 regarding the introduction of Foreign Contribution (Regulation) Act (FCRA) related transaction code in NEFT and RTGS Systems.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

New RBI rules for foreign donations via NEFT, RTGS:

  • Currently, 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.
  • 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 Ministry of Home Affairs (MHA) on daily basis.
  • The necessary changes have been introduced in NEFT and RTGS systems, the technical details are provided in the Annexure of the given Circular.
  • Member banks are advised 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.
  • This Circular is applicable to the Chairman / Managing Director / Chief Executive Officer of member banks participating in NEFT and RTGS Systems and shall come into force from 15th March, 2023.

Also Read: Karnataka Bank awarded ‘Prathista Puraskar for achieving the highest percentage in BHIM-UPI transactions

IDFC FIRST Bank launched ZERO Fee Banking savings accounts_90.1

Leave a comment

Your email address will not be published. Required fields are marked *