RBI pushes for same-day credit in cross-border payments, issues new guidelines

In a major move to improve customer experience, the Reserve Bank of India (RBI) has directed banks to ensure same-day credit of cross-border inward payments received during foreign exchange market hours. The new guidelines aim to significantly reduce delays and bring India’s payment systems in line with global standards.

The directive is part of RBI’s broader effort under its Payments Vision 2025 and the G20 roadmap, which focus on making cross-border transactions faster, cheaper, more transparent, and accessible. A key concern identified by the central bank has been delays at the beneficiary bank level—particularly the lag between receipt of funds and credit to customer accounts.

To address this, the RBI has laid down clear timelines. Banks must credit funds received during forex market hours on the same business day, while payments received after market hours should be credited on the next working day, subject to compliance with FEMA regulations.

Bank notifications

In addition, banks are now required to inform customers immediately upon receiving inward remittance messages. If such messages are received after banking hours, customers must be notified at the start of the next business day. This step is expected to improve transparency and reduce uncertainty for individuals and businesses awaiting overseas funds.

The central bank has also taken aim at operational inefficiencies within banks. It noted that many institutions rely on end-of-day reconciliation of nostro accounts, which leads to delays in crediting funds. To counter this, banks have been advised to move towards near real-time reconciliation or conduct checks at frequent intervals, ideally not exceeding one hour.

STP systems

Further, the RBI has encouraged the adoption of straight-through processing (STP) systems. These automated systems can enable faster and seamless credit of funds to beneficiary accounts without manual intervention, especially for individual transactions. This is expected to reduce processing bottlenecks and enhance efficiency.

Banks upgrade

On the technology front, banks have been asked to strengthen their digital infrastructure. The guidelines recommend creating customer-facing digital interfaces that allow users to track remittances, submit documents, and monitor transaction status in real time.

The new norms will come into effect six months from the date of issuance, giving banks time to upgrade their systems and processes. The directive has been issued under the Payment and Settlement Systems Act, 2007.

With cross-border inflows playing a vital role in India’s economy—from remittances to business payments—the RBI’s move is expected to significantly enhance speed, transparency, and reliability, benefiting millions of users across the country.