Summary of this article
RBI consolidates domestic money transfer rules without changing existing cash transaction limits.
Branch NEFT transfers allow up to Rs 50,000 in cash.
Banks must verify customers and investigate unusual account credit activity.
The Reserve Bank of India (RBI) has put its domestic money transfer rules into one consolidated framework. The new directions retain the existing limits on cash transactions but spell out how banks and other service providers must handle these transfers.
The Domestic Money Transfer (DMT) Directions, 2026, cover two types of services: cash deposits for transfers into bank accounts and cash payments to beneficiaries who do not have bank accounts. It applies to scheduled banks, authorised payment system operators and other participants involved in domestic money transfer services.
Cash Deposits And Transfers Through Different Channels
Under the new directions, individuals can deposit up to Rs 50,000 in cash at a bank branch for transfer to a beneficiary's account through the National Electronic Funds Transfer (NEFT) system. This facility is also available to people who do not hold an account with the bank.
For cash transfers through Business Correspondents (BCs), ATMs and other permitted channels, the limit is Rs 5,000 per transaction. The total amount transferred by one remitter through these channels cannot exceed Rs 25,000 in a month.
The RBI has also permitted banks to provide cash payout services to beneficiaries without bank accounts. Under this facility, money transferred from a customer's bank account can be collected through an ATM, a Business Correspondent or another authorised payment channel.
The payout limit is Rs 10,000 per transaction, subject to a monthly ceiling of Rs 25,000 for each beneficiary. Banks must obtain and maintain records of the beneficiary's name and address.
Customer Verification Measures
Every transaction must also undergo an Additional Factor of Authentication (AFA). In addition, the remitter's details must be included in the Immediate Payment Service (IMPS) or NEFT transaction message. A separate identifier must be used to distinguish cash-based transfers from other transactions.
The directions also require banks and non-bank service providers to maintain systems for monitoring transaction activity. These must include checks on transaction frequency and alerts to customers about credits received through the facility.
Suspicious Transactions Must Be Investigated
Banks have also been mandated to flag any unusual rise in the number of credits received by an individual account or a group of accounts. Suspected transactions will have to be reported to the appropriate authorities.
Money transfers under the framework are expected to be completed in real time or within a short period. Settlements between banks must take place only through payment systems approved by the RBI.
Card-to-card transactions are not included in these revised rules.
