Use of RTGS/NEFT/NECS/ECS for Credit to NRE Accounts – Compliance with FEMA Regulations and Wire Transfer Guidelines

Use of RTGS/NEFT/NECS/ECS for Credit to NRE Accounts –
Compliance with FEMA Regulations and Wire Transfer Guidelines

As the number of transactions of ePayments(RTGS/NEFT/NECS/ECS) go up in India, it is noticed, that there is a similar increase of ePayments(RTGS/NEFT/NECS/ECS) to NRE Accounts.

Credits to NRE Accounts have to comply with FEMA regulations and Wire Transfer guidelines.

Reserve Bank of India, DPSS, vide Lr.No. RBI/2009-10/122,DPSS (CO) EPPD No.327/04.03.02/2009-10, dtAugust 14, 2009, addressed to The Chairman and Managing Director/Chief Executive Officer of all banks, advised the Banks routing ePayment(RTGS/NEFT/NECS/ECS) Transactions to NRE Accounts, to comply with FEMA Regulations and Wire Transfer Guidelines

The complete Letter can be accessed at

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5215&Mode=0

The letter has placed responsibility on the

Credit Originating Bank/Sponsor Bank: To comply with the extant FEMA Regulations and the Wire Transfer Guidelines, for ePayments to NRE Accounts

Destination Bank: To ensure that all valid ePayments Transactions including NRE Credits, are handled through appropriate Straight-through-processing interface, and ‘not returned’.

This circular should reduce the complaints of NRE Customers, regarding non-credit of ePayments(RTGS/NEFT/NECS/ECS) transactions to their accounts.

NRE Friends-Now you can request for ePayments(RTGS/NEFT/NECS/ECS) to your accounts.