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.
