Answer-The Reserve Bank of India (RBI) recently revised norms related to cash pay-in and payout services. W...

Statement A is incorrect because the RBI guidelines require recording both the name and address of the beneficiary for cash payouts, not just the name. Statement B is incorrect because the new guidelines are effective from November 1, not October 1. Statement C is incorrect because remitting banks and BCs must register the remitters details based on a verified cell phone number and a self-certified Officially Valid Document OVD, not an unverified cell phone number and an OVD without self-certification. Statement D is correct as per the new RBI guidelines every transaction by a remitter will indeed be validated by an Additional Factor of Authentication AFA. Statement E is incorrect because the remitting banks and BCs must comply with the Income Tax Act, 1961, not the Foreign Exchange Management Act, 1999.

Question

The Reserve Bank of India (RB

I recently revised norms related to cash pay-in and payout services. Which of the following statements is correct regarding the new guidelines?

A he remitting bank is required to record only the name of the beneficiary for cash payouts.

B The new guidelines for Domestic Money Transfer will be effective from October 1.

C For cash pay-in services, remitting banks and business correspondents (BCs) must register the remitter’s details based on an unverified cell phone number and an ‘Officially Valid Document (OVD)’ without self-certification.

D Every transaction by a remitter will be validated by an Additional Factor of Authentication (AFA).

E Remitting banks and BCs must comply with the Foreign Exchange Management Act, 1999.

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