RBI Updates: RBI said that some changes have been made in NEFT and RTGS system. The new rules will come into effect from March 15, 2023. Know what is the update
RBI Guidelines For RTGS and NEFT: Big news related to Reserve Bank of India (RBI) is coming out. On Friday, RBI has made several changes in the RTGS and NEFT systems regarding foreign donations. This change has taken place in the online transfer system from RBI for transactions related to Foreign Contribution Regulation Act (FCRA). The new guideline issued by RBI will be effective from March 15, 2023. Know what is the new update….
RBI gave instructions to SBI Bank
RBI has issued new guidelines to all the member banks participating in the online payment system. RBI said that State Bank of India (SBI Bank) needs to make some improvements in its core banking, middleware solutions to capture necessary details while receiving foreign donations through NEFT and RTGS systems.
Home Ministry will have to give information
RBI has mandated the Ministry of Home Affairs to report all the details of foreign donors. State Bank of India (SBI Bank) has been asked to send a report to the Ministry of Home Affairs on a daily basis about foreign donors, including remittances from abroad. RBI said that various details including name, address, country, amount, currency and purpose of sending the donor will have to be given. SBI will have to give information about this to the Ministry of Home Affairs on a daily basis.
Money directly in FCRA account
According to the new rule, foreign contributions under the Foreign Contribution Regulation Act (FCRA) should come only in the FCRA account of SBI’s New Delhi main branch. Contributions to the FCRA account from foreign banks are sent through Society for Worldwide Interbank Financial Telecommunications (SWIFT) and from Indian banks through NEFT and RTGS. Contributions to the FCRA account come directly from foreign banks through SWIFT and through Indian intermediary banks.
Rules will be applicable from March 15
RBI has made several major changes for transactions related to Foreign Contribution Regulation Act (FCRA). These changes have made necessary changes in NEFT (National Electronic Fund Transfer-NEFT) and RTGS (Real Time Gross Settlement – RTGS) systems. RBI said that these new guidelines have been asked to be implemented across the country from March 15, 2023.
NGO registration canceled
Since the Modi government came to power in 2014, the rules related to FCRA have been further tightened. Under this, FCRA registrations of about 2,000 non-governmental organizations (NGOs) have also been canceled for violating various provisions of the law. There were 22,762 FCRA-registered at the end of December 2021.
