Correspondent Banking Overview
Correspondent Banking OverviewCorrespondent banking is a financial arrangement wherein one bank, referred to as the correspondent bank, provides banking services on behalf of another bank, known as the respondent bank, typically across international borders. This framework facilitates access to global financial systems, enabling banks to serve customers in jurisdictions where they lack a direct presence.…
Read article SWIFT Financial messages: authentic and universal
The SWIFT financial messages are trusted as the most authentic and universal financial messages worldwide. SWIFT financial message is also the most convenient and fastest medium through which banks can meet customer’s requirements to send and receive messages to and from any country. Reasons for trusting SWIFT messages by banks and financial institutions: SWIFT stands…
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What are RTGS & NEFT transactions
Latest update: RBI on thursday (06.06.2019) informed banks that it has decided to waive charges levied on NEFT & RTGS transactions and accordingly instructed the bank to pass on the benefit to their customers. Instruction on this regard will be issued within a week. Process of RTGS and NEFT RTGS& NEFT transactions are the fastest…
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What is ECS (Electronic Clearing system)?
Electronic Clearing Service (ECS) in bank transaction is a simple, faster and cost effective solution for repetitive bulk transactions. The system was first introduced by Reserve Bank of India in April 1995 to facilitate speedier bulk inter-bank transactions. It is most useful to facilitate repetitive payment transaction such as salary, pension, interest, commission, dividend etc. ECS…
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Operational Guidelines under the Liberalised Remittance Scheme (LRS)
The Liberalised Remittance Scheme (LRS), introduced by the Reserve Bank of India (RBI), permits resident individuals to remit up to USD 250,000 per financial year (April–March) for a range of permissible current and capital account transactions. While there are no restrictions on the number of remittances within a financial year, the aggregate amount from all…
Reporting Requirements under the Liberalised Remittance Scheme (LRS)
Under the Liberalised Remittance Scheme (LRS), resident individuals are permitted to remit up to USD 250,000 per financial year for a wide range of permissible current and capital account transactions. In order to ensure transparency and regulatory compliance, the scheme imposes specific reporting and documentation obligations on both remitters and Authorised Dealer (AD) banks. 1.…
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