Domestic Money Transfer Limits Increased by RBI.
Now the money transfer limits across the country has been liberalised by RBI to help increase the amount of fund transfers of small amount. As per the older system, only the banks were permitted to allow fund transfer across the country which were subjected to certain ‘know your customer’ conditions, due to which many
people from other country who lack identity or address proof were not able to send money to their home.
As per the new guidelines issued by RBI, now the customers will be able to transfer money from their bank account to the one not having any bank account. Earlier the transaction cap was limited to Rs 5000, which has been increased to Rs 10000 and has been capped at Rs 25000 per beneficiary for every month. This facility will be available subjected to the condition that the remitting bank will have to obtain the name, address and other important details related to proof as identity and address proof of the beneficiary for initiating transaction.
Now the person not having their bank account in the remitting bank can also transfer funds to the bank accounts of their family members for amount up to Rs 5000. The Rs 5000 limit can be increased to Rs 25000 per person if he or she provide the identity and address details to the remitting bank.
As per the new guidelines now the customers can also use their credit or debit or the pre-paid cards for domestic fund transfers which are also subjected to same condition of monthly cap and transaction limits. RBI has allowed the use credit/debit/pre-paid cards for fund transfer because of its increasing penetration in today’s banking market.