The RBI has updated the Domestic Money Transfer (DMT) framework introduced in 2011. Now, remitting banks must record beneficiary details for cash pay-out services. For cash pay-in services, banks/Business Correspondents (BCs) must register remitters using a verified cell phone number and a self-certified Officially Valid Document (OVD). Each transaction requires an Additional Factor of Authentication (AFA). Remitting banks and BCs must comply with the Income Tax Act for cash deposits, and include remitter details in IMPS/NEFT messages with a cash-based remittance identifier. Card-to-Card transfers are excluded from DMT and will follow separate guidelines. The circular, effective November 01, 2024, retains other instructions from the 2011 framework.
Click here to read more.