RBI Domestic Money Transfer Rules have clarified how much money customers can send or receive through cash-based banking services in India.
The Reserve Bank of India (RBI) has introduced a consolidated framework that retains the existing transaction limits while strengthening KYC requirements, authentication and monitoring of domestic money transfers.
Under the new directions issued on November 11, 2026, cash payouts to beneficiaries without bank accounts are limited to Rs 10,000 per transaction. The monthly transfer limit for a single beneficiary has been fixed at Rs 25,000.
The revised framework is particularly relevant for people who use authorised banking agents, ATMs and other permitted channels to send money to family members or receive funds without maintaining a bank account.
RBI Domestic Money Transfer Rules: New Transaction Limits
The RBI has specified different limits depending on whether money is being transferred from a bank account for cash collection or deposited in cash for credit to another bank account.
Under the cash payout facility, banks can transfer money from their customers’ accounts to beneficiaries who do not have bank accounts.
The recipient can collect the money through an ATM, a Business Correspondent (BC) or another authorised payment channel.
The maximum amount permitted under this facility is Rs 10,000 per transaction, subject to an overall monthly limit of Rs 25,000 per beneficiary.
For cash pay-in services, customers can deposit money at bank branches for transfer to another person’s bank account through the National Electronic Funds Transfer (NEFT) system.
Walk-in customers can remit up to Rs 50,000 through this facility, even if they do not maintain an account with that particular bank.
Customers can also use Business Correspondents, ATMs and other permitted channels for cash deposits into beneficiaries’ accounts.
However, this facility carries a limit of Rs 5,000 per transaction and Rs 25,000 per month per remitter.
New KYC and Authentication Requirements for Money Transfers
The RBI has strengthened identification requirements for customers using cash-based money transfer services.
Banks and Business Correspondents must register remitters using a verified mobile phone number and a self-certified Officially Valid Document (OVD), in accordance with the applicable RBI Know Your Customer directions.
Every transaction must also be validated through an Additional Factor of Authentication (AFA). This requirement adds another layer of verification before a money transfer is completed.
The remitting bank must also include the remitter’s details in the NEFT or Immediate Payment Service (IMPS) transaction message.
A separate identifier must be used to distinguish cash-based remittances from other fund transfers.
These measures are intended to improve transaction traceability and reduce the possibility of misuse of domestic money transfer services.
RBI Introduces Stronger Monitoring of Cash Transfers
The new framework also requires banks and non-banking entities to strengthen their monitoring systems.
Banks and authorised service providers must conduct transaction frequency checks and send customer alerts when money is credited through these facilities.
If an account or group of accounts receives an unusual increase in the volume of credits, the concerned institution must investigate the activity. Suspicious transactions must also be reported to the appropriate authorities.
The RBI has specified that domestic money transfers under these directions should generally be completed in real time or near real time.
Inter-bank settlements must take place through payment systems approved by the central bank.
Which Customers and Banking Services Are Covered?
The new directions apply to scheduled commercial banks, including Regional Rural Banks, urban co-operative banks, state co-operative banks and district central co-operative banks.
Authorised payment system operators and participants are also covered to the extent that the directions apply to their domestic money transfer services.
Card-to-card transfers have been excluded from this framework. They will continue to operate under the separate guidelines and approvals applicable to their respective payment instruments.
Banks and non-banking entities may determine reasonable charges for domestic money transfer services. They must also maintain appropriate systems to address customer complaints.
Eligible customer grievances will fall under the RBI-Integrated Ombudsman Scheme, 2026.
What Customers Should Know About the New RBI Rules
The RBI Domestic Money Transfer Rules consolidate earlier instructions into a single framework rather than introducing an entirely new set of transaction limits.
For customers, the important distinction is between cash payout and cash pay-in services.
Cash payout allows beneficiaries without bank accounts to collect transferred money, while cash pay-in enables customers to deposit cash for credit to another person’s bank account.
The Rs 10,000 limit applies to cash payouts per transaction, not to every type of domestic money transfer.
Customers depositing cash at a bank branch can still remit up to Rs 50,000 through NEFT, subject to the prescribed conditions.
The directions took effect immediately after their issuance on November 11, 2026.
They are intended to make domestic money transfers more secure while retaining access to formal banking channels for people who depend on cash-based services.
