What changed
Banks must now inform customers of inward cross-border payments immediately upon receipt, or at the start of the next business day if received after operating hours. Nostro account reconciliation must occur at intervals not exceeding one hour, replacing reliance on end-of-day statements. Banks are required to credit inward payments received during forex market hours on the same business day, and those after hours on the next business day, subject to FEMA compliance.
What it means for you
This directive accelerates the beneficiary leg of cross-border payments, reducing delays that previously stemmed from infrequent nostro reconciliation and slow customer notification. Banks must upgrade their payment processing systems to support near-real-time reconciliation and same-day crediting, which may require investment in technology and process changes. Lenders with high cross-border remittance volumes will see improved customer satisfaction and operational efficiency, but must ensure strict adherence to FEMA guidelines for straight-through processing.
What you must do
- Implement systems to notify customers of inward cross-border payments immediately upon receipt, or at the start of the next business day for after-hours messages.
- Set up nostro account reconciliation processes at intervals not exceeding one hour, moving away from end-of-day statements.
- Ensure inward payments received during forex market hours are credited to beneficiary accounts on the same business day, and those after hours on the next business day.
- Develop digital interfaces for customers to submit documents and monitor foreign exchange transactions, within a reasonable timeframe.
- Review and update risk assessment frameworks to enable straight-through processing for individual resident accounts, subject to FEMA compliance.
Who it affects
All scheduled commercial banks handling cross-border inward payments, Beneficiary customers receiving cross-border remittances, Bank operations and IT teams managing payment systems and nostro accounts
When do these new guidelines take effect?
The directions are effective six months from the circular date of April 9, 2026, meaning banks must comply by October 9, 2026.
What is the maximum allowed interval for nostro account reconciliation?
The reconciliation interval should normally not exceed one hour, moving away from reliance on end-of-day statements to expedite fund crediting.
Can banks credit inward payments without manual checks for all customers?
Yes, banks may put in place straight-through processing for crediting inward payments to individual resident accounts, based on their risk assessment and subject to FEMA guidelines.