In short: The Reserve Bank of India has issued the Reserve Bank of India (Domestic Money Transfer) Directions, 2026, bringing its earlier instructions on small-value cash-based transfers into one document. A walk-in customer at a bank branch can send up to ₹50,000 to a beneficiary's bank account through NEFT. Cash pay-out to people without bank accounts is capped at ₹10,000 per transaction.
What has changed?
The RBI has harmonised and consolidated its existing instructions on Domestic Money Transfer (DMT) into a single set of Directions. According to the reports, the Directions came into effect on the day the RBI announced them, a Wednesday.
The DMT framework was created to help small-value transfers go through formal banking channels. It is aimed particularly at people, including migrant workers, who cannot access such channels because they lack proof of identity or address.
Cash pay-in: sending money into a bank account
Cash pay-in means paying in cash so that the amount is credited to a bank account. The limits depend on the channel used.
| Channel | Limit |
|---|---|
| Walk-in customer at a bank branch, via NEFT | Up to ₹50,000 |
| Business Correspondents (BCs), ATMs and similar channels, if the bank allows | Up to ₹5,000 per transaction, with a monthly cap of ₹25,000 per remitter |
Other conditions for cash pay-in include:
- The remitting bank or BC must register the remitter using a verified mobile number and a self-certified Officially Valid Document (OVD).
- Every transaction must be validated by an Additional Factor of Authentication (AFA).
- The bank must follow the applicable cash-deposit provisions of the Income-tax Act, 2025, and the rules made under it.
- The remitter's details must be part of the IMPS/NEFT transaction message, along with an identifier showing that it is a cash-based remittance.
Cash pay-out: giving cash to people without accounts
Banks may offer services that move money from a customer's bank account and deliver it in cash to a recipient who has no bank account. Delivery can be at an ATM, through a BC, or through another authorised payment channel.
- Per-transaction limit: ₹10,000.
- Monthly limit: ₹25,000 per beneficiary.
- Record-keeping: the remitting bank must obtain and keep the beneficiary's name and address.
Safeguards, speed and charges
Banks and non-banks, as applicable, are expected to have strong safeguards, including velocity checks and alerts to customers about credits to their accounts under these facilities. Any unusual jump in credits to an account or group of accounts must be investigated immediately, and the appropriate authorities must be alerted about suspicious transactions.
Transfers under the facility are expected to happen in real time or near real time. Banks and non-banks may set reasonable charges for DMT services. Card-to-card transfers are outside the scope of the Directions.
Who is affected?
- People without bank accounts or full documents, such as migrant workers, who send or receive small amounts.
- Walk-in customers at bank branches.
- Banks, non-banks and their Business Correspondents, who must apply the limits, checks and record-keeping rules.
What should you do?
If you plan to send cash to someone's account or to a person without an account, check which channel you are using, as the limits differ. Keep your mobile number and identity document ready, since registration and authentication are required. Ask your bank or BC about charges before you transact.
Frequently asked questions
How much can a walk-in customer send through NEFT?
A walk-in customer at a bank branch can remit up to ₹50,000 to a beneficiary's bank account through NEFT.
What is the limit for cash pay-out to someone without a bank account?
The limit is ₹10,000 per transaction, with an overall monthly ceiling of ₹25,000 per beneficiary.
Do the Directions cover card-to-card transfers?
No. Card-to-card transfers are excluded from the Directions.
Sources
- Hindustan Times: RBI issues domestic transfer norms; walk-in customers can send up to ₹50k
- BusinessLine: Banks can offer cash pay-in and pay-out services under revised domestic money transfer norms