adsense

Showing posts with label NEFT Transaction Code 50. Show all posts
Showing posts with label NEFT Transaction Code 50. Show all posts

Tuesday, June 25, 2013

National electronic funds transfer (NEFT) transaction code 50


            In NEFT there are specific codes for special type of transactions. For eg: Transaction Code 52 denotes Credit Card Transactions.

            Like wise, Transaction Code 50 denotes Cash Transactions. Yes, you might be surprised as to how Cash and ePayment can co-exist.

            A couple of years ago, Reserve Bank of India, introduced a new Transaction Code 50. This was aimed at Indians who desired to remit money through banking channels, but did not have a Bank Account, at least with the NEFT originating bank.  However, the beneficiary had a bank account.        
    
            The remitters could walk into any bank branch and request for a NEFT transaction through cash deposit.  

            The upper limit per transaction is Rs50, 000/-

Process in brief:
  • In order to facilitate cash remittances through NEFT up to Rs 50,000/- for persons who are not having account with the originating bank, the originating banks are required to collect the full details of remitters, including complete address and telephone number, etc., in order to comply with the Wire Transfer Guidelines.

  • These details need to be keyed in the Sender's details field provided in NEFT outward debit message with transaction code 50 for identification.

  • A Special Account may need to be opened for this purpose at the originating branches to route the cash transactions and that Special Account Number should be given while originating a Cash Transaction.

  • This account would also facilitate the handling of returned NEFT transactions.

  • The returns would automatically be credited to the Special Account in a Straight through Processing (STP) environment.
The AML (Anti-Money Laundering) Cell of the remitting bank is expected to closely monitor this account to ensure that only legitimate transactions are being routed through. Over a period of time, it is expected, each bank will develop their processes to make sure that no regulations are violated.


            The main challenge would be in ‘return’ of funds of returned NEFT transactions. Of course, we Indians are smart enough to mention the correct details to ensure 100% successful transactions. 

LinkWithin

Related Posts with Thumbnails

Disclaimer

The thoughts in this BLOG are personal, and reflect only my view on the subject.
This are not the views of my Employers.
All images, logos rights rest with the Original TitleHolders

All efforts have been made to make this information as accurate as possible, N Prashant will not be responsible for any loss to any person caused by inaccuracy in the information available on this Website. Relevent Official Gazettes Communications may be consulted for an accurate information. Any discrepancy found may be brought to the notice of N Prashant