New Payment Options Facilitate Faster and More Accessible Transactions

The Italian Central Bank's (RBI) has updated its internal money transfer directives for 2026, allowing banks to offer payment services through authorized channels.

[Photo Credit: FRANCIS MASCARENHAS] The RBI stated that banks can provide cash payment services, which involve delivering transferred amounts from a bank account to recipients who do not have bank accounts, via ATMs or through designated correspondent agents such as Professional Correspondents, or any other authorized payment channel, according to their revised guidelines. Additionally, they can offer cash payment services (cash payments of sums due to be paid into bank accounts).

The preceding clause is part of the consolidated guidelines for money transfer services (MTS) issued by the Bank of Italy (BOI) in 2026. This directive includes existing regulations related to MTS. Banks and non-banks can establish reasonable taxes to promote these services. When providing cash payment services, the transferring bank must keep a record of the recipient's name and address. Additionally, the maximum amount that can be transferred under cash payment services will be $10,000 each time, with an annual limit of $25,000 for the sender.

Regarding cash payment services (payment of amounts due to bank accounts), the RBI has stated that a sender can transfer up to $50,000 to a recipient's account through NREFT (Electronic National Payments) at a bank branch. Banks are also authorized to allow people visiting a bank branch to transfer sums up to $5,000 to a recipient's account via BCs, ATMs, etc., with a monthly limit of $25,000 for the sender. The sending bank or BC will need to register the sender based on verified phone numbers and validated documentation (OVD). Every transaction made by a sender should be validated by an additional authentication factor (AFA).

Every countertop and its associated BCs should adhere to the regulations stipulated by the Register of Banks, 2025, along with any supplementary rules outlined thereon, concerning the receipt of funds. The sender's bank is obligated to include details about the sender within their transaction message via IMPS/NEFT. The transaction message must also feature an identifier to indicate that it is a cash payment. The Reserve Bank has declared that both banks and non-banks have installed robust security systems, including speed controls and alerts for clients regarding incoming fund deposits into accounts used for these services. This evolution in financial norms has led to new payment options that are more efficient and accessible. This decision aims to enhance customer performance while increasing transaction safety.

The changes to the directives have been introduced to strengthen transaction security and offer more effective alternatives than traditional options.