India’s central bank on Wednesday proposed measures to make it easier and faster for people and businesses to receive money from abroad, aiming to cut delays between when a bank gets the payment and when it reaches the recipient’s account.
“One of the challenges with speed of cross-border payments is the delay between receipt of the payment at the beneficiary bank and credit to the beneficiary account,” the Reserve Bank of India said.
The RBI, in a draft circular published on its website, proposed that banks should ensure payments received during foreign exchange market hours are credited to customers’ accounts on the same day, while those received after market hours should be credited the next business day.
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To further speed up the process, the regulator proposed that banks could introduce a “straight through” process with automated systems to credit payments directly to individual accounts after assessing the risks.
It also encouraged banks to create digital platforms that allowed customers to upload required documents and track their foreign exchange transactions.
The RBI has invited comments on its proposals from banks by November 19.
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