RBI allows 'direct to account' facility for rupee drawing arrangement
Updated: Apr 11, 2014 02:43:03pm
Mumbai, Apr 11 (KNN) In order to facilitate receipt of foreign inward remittances directly into bank accounts of the beneficiaries, RBI has decided to allow foreign inward remittances received under Rupee Drawing Arrangement (RDA) to be transferred to the Know Your Customer (KYC) compliant beneficiary bank accounts through electronic mode, such as, NEFT, IMPS, etc.
The procedure for the arrangement will be: foreign inward remittances received by the Partner Bank having RDA with Non Resident Exchange Houses may be credited directly to the account of the beneficiary held with a bank other than the Recipient Bank electronically.
According to the RBI notification, for the conditions for the rupee drawing arrangement directly will be, “In respect of the bank accounts which are not KYC compliant, the Recipient Bank shall carry out KYC/CDD of the recipient before the remittance to such account is credited or allowed to be withdrawn.”
Further, “The Partner Bank shall appropriately mark the direct-to-account remittances to indicate to the Recipient Bank that it is a foreign inward remittance,” the notification added.
The identification and other documents of the recipient shall be maintained by the Recipient Bank as per the provisions of Prevention of Money Laundering (Maintenance of Records) Rules, 2005.
All other requirements under KYC/AML/CFT guidelines issued by the Reserve Bank of India from time to time shall be adhered to by the Partner Bank.
“The Recipient Bank may seek additional information from the Partner Bank and shall report suspicious transactions to the FIU-IND with details of the Partner Bank through which they received the remittances,” the notification said. (KNN/SD)
The procedure for the arrangement will be: foreign inward remittances received by the Partner Bank having RDA with Non Resident Exchange Houses may be credited directly to the account of the beneficiary held with a bank other than the Recipient Bank electronically.
According to the RBI notification, for the conditions for the rupee drawing arrangement directly will be, “In respect of the bank accounts which are not KYC compliant, the Recipient Bank shall carry out KYC/CDD of the recipient before the remittance to such account is credited or allowed to be withdrawn.”
Further, “The Partner Bank shall appropriately mark the direct-to-account remittances to indicate to the Recipient Bank that it is a foreign inward remittance,” the notification added.
The identification and other documents of the recipient shall be maintained by the Recipient Bank as per the provisions of Prevention of Money Laundering (Maintenance of Records) Rules, 2005.
All other requirements under KYC/AML/CFT guidelines issued by the Reserve Bank of India from time to time shall be adhered to by the Partner Bank.
“The Recipient Bank may seek additional information from the Partner Bank and shall report suspicious transactions to the FIU-IND with details of the Partner Bank through which they received the remittances,” the notification said. (KNN/SD)
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