Mumbai, Jul 24 (PTI) The RBI on Wednesday tightened norms related to cash pay-out service at banks, making it mandatory for lenders to keep a record of recipients.

Cash pay-out refers to arrangements for amounts being transferred out of bank accounts to beneficiaries not having a bank account.

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The Reserve Bank of India (RBI) has revised its October 2011 framework related to 'Domestic Money Transfer'.

The new norms will come into effect from November 1, 2024.

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For cash pay-out service, the revised framework said, "The remitting bank shall obtain and keep a record of the name and address of the beneficiary".

In case of cash pay-in service, the RBI said remitting banks/ business correspondents (BCs) will register the remitter based on a verified cell phone number and a self-certified ‘officially valid document (OVD)' as per the know your customer direction.

Also, every transaction by a remitter should be validated by an additional factor of authentication (AFA).

Futher, remitter bank should include remitter details as part of the IMPS / NEFT transaction message, the RBI said.

The guidelines on card-to-card transfer are excluded from the purview of the framework.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)