RBI has made changes in NEFT and RTGS systems to improve monitoring of foreign remittances.

The Reserve Bank of India (RBI) has made changes to the National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) systems to improve the monitoring of foreign remittances.

Under the new rules, banks will now have to report daily to the RBI all transactions received through NEFT and RTGS that are over INR 1 crore and originated from outside of India. The new reporting requirements are expected to help the central bank better track foreign remittances and detect any potential irregularities or fraudulent activities.

Previously, banks were only required to report these transactions to the Financial Intelligence Unit (FIU) on a monthly basis. The RBI has said that the new reporting requirements will be effective from April 1, 2023.

The NEFT and RTGS systems are two of the most popular electronic payment systems in India, with NEFT being used primarily for smaller transactions and RTGS being used for larger transactions. The changes to the reporting requirements are part of the RBI's ongoing efforts to strengthen the country's financial system and prevent money laundering and other financial crimes.

Overall, the new rules are expected to increase transparency and accountability in the remittance process, and will help the RBI better monitor the flow of funds in and out of the country.