To enhance the efficiency of cross- border inward payments, the Reserve Bank of India has issued new guidelines, whereby banks may put in place a straight through process for crediting the inward payments to the account of individual residents.
This aforementioned process should be based on their risk assessment and subject to compliance with extant FEMA (Foreign Exchange Management Act) guidelines.
Banks may, within a reasonable time frame, also endeavour to provide digital interface to their customers to facilitate foreign exchange transactions, including submission of documents or information, and monitoring of transactions.
The guidelines require banks to inform their customer of the receipt of cross-border inward transactions immediately on receipt of inward message.
Messages received after close of operating hours of banks will be informed to customer immediately at the start of the next business day.
The guidelines require banks to undertake reconciliation and confirmation of credit in the nostro account (held by a domestic bank in a foreign bank) frequently either on near real time basis or at periodic intervals. The reconciliation interval should normally not exceed one hour.
Banks should endeavour to credit the inward payments received during the foreign exchange market hours within the same business day to the beneficiary’s account, per the guidelines.
Further, they should credit the inward payments received after market hours on the next business day, subject to compliance with the extant FEMA and other regulatory requirements.
Published on April 9, 2026