The question here would be – Do banks have the right to stop the payment for inward remittances made from an unknown person from a foreign country?
Be aware that you cannot accept a currency remittance from an unknown source. The sending bank will attest to the legitimacy of its client.
The receiving bank will verify the beneficiary’s legitimacy when it receives the foreign currency. The bank will credit the money to the account if the requirements are satisfied.
In India, a sum up to Rs. 10,00,000 would be immediately credited to an account that has been correctly created.
Any payment beyond this limit will be forwarded to the client for approval before being reimbursed. Banks are secure because all high-value foreign exchange transactions go via the vigilance channel.
Therefore, if the bank receives any warning from the channel in charge, such as the RBI or central banks, it may decide to cease paying the account.