On October 29, 2025, the Reserve Bank of India (RBI) released a draft circular titled “Guidelines to facilitate faster cross-border inward payments.” The initiative marks a major step in modernizing India’s payment infrastructure and aligns with the G20 roadmap for faster, cheaper, and more transparent cross-border payments.
The RBI has invited comments and feedback from banks on the draft circular by November 19, 2025. Responses can be submitted through the ‘Connect2Regulate’ section on the RBI’s website, by post to the Chief General Manager-in-Charge, Department of Payment and Settlement Systems, or via email under the subject line “Feedback on Draft Circular on Guidelines to facilitate faster cross-border inward payments.”
Why the Draft Circular Matters
Cross-border payments are an essential component of global commerce and remittances. India, being the world’s largest recipient of inward remittances, processed over $125 billion in inflows in 2023. Despite technological advancements, these payments often face delays between the time funds are received by the beneficiary bank and when they are actually credited to the end customer’s account.
The draft circular specifically aims to reduce this gap — the “last mile” delay — by addressing frictions in the transmission of payment information. This move not only benefits individuals and businesses awaiting funds but also strengthens India’s position as a global payments leader.
The Vision Behind the Guidelines
The proposal stems from the RBI’s Payments Vision 2025, which seeks to enhance the speed, transparency, and accessibility of payment systems while ensuring safety and efficiency. The Vision is closely aligned with the G20’s cross-border payments roadmap, which outlines global targets for improving cross-border payment experiences.
Through the new guidelines, the RBI intends to standardize and streamline the process of intimating payment information to beneficiary banks, ensuring that once funds are received, they are credited to the end user’s account without unnecessary delays. This could involve better coordination between correspondent banks, use of modern messaging formats (such as ISO 20022), and improved systems for real-time tracking of payments.
Benefits and Broader Implications
- For Individuals and Businesses: Faster receipt of funds will enhance customer satisfaction and improve cash flow for exporters, freelancers, and overseas Indian workers who rely on timely remittances.
- For Banks: Improved efficiency in payment processing will help reduce reconciliation issues and operational overheads.
- For India’s Financial Ecosystem: The guidelines are part of a broader modernization drive, positioning India’s financial infrastructure at par with global standards.
Invitation for Feedback
RBI’s consultative approach reflects its ongoing commitment to stakeholder-driven regulation. Banks and payment service providers are encouraged to review the draft circular and share suggestions by November 19, 2025. Constructive feedback will help refine the framework and ensure practical implementation across the banking system.
Conclusion
The RBI’s draft circular on faster cross-border inward payments is a forward-looking reform that supports India’s ambition to build a seamless, real-time global payments ecosystem. By reducing settlement delays and enhancing transparency, the initiative promises to make cross-border transfers more efficient, inclusive, and globally competitive.
Stakeholders should seize this opportunity to contribute to shaping the future of India’s payment landscape.