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…
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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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Look up facility for RTGS and NEFT services from April 2025
The Reserve Bank of India (RBI) has mandated the implementation of a beneficiary account name verification system for fund transfers via Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) services by April 2025. Currently, payment systems such as the Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) allow remitters to verify the…
Liberalised Remittance Scheme (LRS) in the Context of Capital Account Transactions under FEMA
Under the Foreign Exchange Management Act (FEMA), 1999, all foreign exchange transactions are broadly classified as either current account or capital account transactions, depending on whether they result in a change in assets or liabilities of a person resident in India vis-à-vis the rest of the world. The Liberalised Remittance Scheme (LRS), introduced by the…
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