Same-Day Cross-Border Payments: A Reality Soon By RBI?

The Reserve Bank of India (RBI) has proposed a significant update to India’s cross-border payment framework. In a draft circular dated 29 October 2025, it suggests that banks must credit foreign remittances on the same business day if received during foreign exchange (forex) market hours. Remittances received after these hours would be credited on the next business day. This initiative is part of the RBI’s larger vision to modernise India’s cross-border payments ecosystem, boost transparency, and align with international best practices.

Key Proposals in the Draft

The RBI’s draft outlines several operational changes for inward remittances,

• Same-day credit must be given for remittances received during forex market hours.
• Next-day credit applies to remittances received after market hours.
• Banks are encouraged to implement straight-through processing (STP)—a fully automated transaction process that reduces delays and human errors.
• Mandatory reconciliation of nostro accounts (foreign currency accounts) should be done in near-real time, with intervals not exceeding 30 minutes.
• Banks should also offer user-friendly digital platforms for customers to upload necessary documents and track transaction status online.

These proposed changes aim to create seamless, faster, and more reliable fund transfers from overseas to Indian recipients.

Faster Access to Funds

• The proposed norms will eliminate delays in receiving foreign funds, ensuring that individuals and businesses can access money almost immediately after it reaches the bank.
• This is particularly important for students, families of migrant workers, and exporters who rely on timely fund flow.

Enhancing India’s Financial Competitiveness

• Globally, the trend is toward instant or near-instant payments.
• With these norms, India aligns its banking system with global payment benchmarks, increasing its attractiveness as a financial hub and making it more efficient in handling foreign inflows.

Supporting Economic Inclusion

• For many low-income households dependent on remittances from abroad, faster credit can make a tangible difference—helping meet urgent needs like medical expenses, education, or day-to-day living costs.
• This reform encourages broader financial inclusion.

What Stakeholders Should Do

• Banks should start auditing their current systems, identify gaps in their inward remittance workflows, and plan necessary upgrades.
• Businesses can prepare for faster payment cycles by integrating their internal finance systems with bank interfaces.
• Customers, especially those who rely on foreign remittances, should stay informed and choose banks that provide efficient, digital tracking tools.