Inward remittances: RBI orders hourly Nostro checks, same-day credit
Why in the news
On 9 April 2026 the RBI told banks to cut the waiting time before foreign remittances reach customers. India received more than $135 billion in remittances in 2025, the most in the world, and the rules fit the G20 roadmap for cheaper and faster cross-border payments.
Key facts
- Focus: the beneficiary leg, i.e. time from the bank receiving the payment message to funds showing in the account.
- Intimation: immediate; if the message arrives after operating hours, at the start of the next business day.
- Nostro reconciliation: near real-time or periodic, with gaps not exceeding one hour; earlier many banks waited for end-of-day statements.
- Credit: same business day for payments received during forex market hours.
- STP: banks are encouraged to use Straight-Through Processing for individual residents when risk and FEMA checks are clear.
Who gains
| Group | Benefit |
|---|---|
| Individual recipients | Quicker access to money for family upkeep, education or emergencies |
| Exporters | Better working capital, as export earnings are available the same day |
| Economy | More liquidity and faster circulation of foreign exchange |
| Banks | Speed as a selling point, though they must upgrade automated reconciliation systems |
Background
- Nostro account: a foreign-currency account an Indian bank holds with a bank abroad. Incoming money first lands there, and the Indian branch confirms it before giving rupees.
- STP: a fully automated credit cycle with no manual data entry.
- Inward vs outward: inward money comes into India; outward money leaves it.
Exam angle
- Maximum Nostro reconciliation gap: one hour.
- Global benchmark referred to: G20 roadmap for cross-border payments.
- Remittance figure: over $135 billion in 2025.