What changed
RBI updated the 2011 DMT framework to address the growth in banking outlets and digital payment options. For cash pay-outs, remitting banks must now record the beneficiary's name and address. For cash pay-ins, remitters must register with a verified mobile number and a self-certified OVD, and every transaction requires AFA. Card-to-Card transfers are no longer under DMT rules.
What it means for you
Banks and BCs must enhance KYC and authentication for cash-based remittances, increasing compliance costs but reducing fraud risk. The exclusion of Card-to-Card transfers simplifies oversight for those instruments. Existing transaction limits remain unchanged, so operational adjustments are needed without altering core limits.
What you must do
- Update systems to capture and store beneficiary name and address for all cash pay-out transactions by Nov 1, 2024.
- Ensure remitter registration for cash pay-ins includes verified mobile number and self-certified OVD as per KYC Master Direction.
- Implement AFA for every cash pay-in transaction by remitters.
- Include remitter details and a cash-based remittance identifier in IMPS/NEFT messages for cash pay-ins.
- Review and align cash pay-in processes with Income Tax Act provisions on cash deposits.
Who it affects
Authorised Payment System Operators, Banks (remitting and beneficiary), Business Correspondents, Non-bank participants in DMT
What is the effective date for these new DMT rules?
The circular comes into effect from November 1, 2024.
Are Card-to-Card transfers still covered under the DMT framework?
No, Card-to-Card transfers are now excluded and will be governed by separate guidelines or approvals.
Do the existing transaction limits from the 2011 circular still apply?
Yes, all other instructions from the October 5, 2011 circular, including transaction size limits, remain applicable.