RBI told to report daily on foreign remittances

RBI told to report daily on foreign remittances

The Ministry of Home Affairs has mandated the State Bank of India (SBI) to daily reporting on all details of overseas donors, including the purpose of remittances.

In response, the Reserve Bank of India (RBI) announced changes to national electronic funds transfer (NEFT) and real time gross settlement (RTGS) systems for transactions relating to the Foreign Contribution (Regulation) Act.

A highlight is that foreign contributions must be received only in the “FCRA account” of the SBI at the bank’s main branch in New Delhi.

The RBI advised member banks to incorporate necessary changes in core banking and middleware solutions to capture the requisite details while forwarding the foreign donations through NEFT and RTGS systems to the SBI.

The changes took effect from 15 March 2023.