RBI issues new domestic money transfer rules: Walk-in NEFT up to ₹50,000, cash delivery up to ₹10,000

The Reserve Bank of India has issued the "Reserve Bank of India (Domestic Money Transfer) Directions, 2026", which allows walk-in customers at bank branches can utilise the cash pay-in service to remit funds up to ₹50,000 directly to a beneficiary's bank account through NEFT.

The Domestic Money Transfer (DMT) framework facilitates small-value fund transfers through formal banking channels. DMT is particularly relevant for persons, including migrant workers, who lack access to such channels for want of proof of identity/address.

This article explains key details from the RBI's new directions on DMT.

There are two important parts of the directions relevant for customers.

RBI said a walk-in customer at a bank branch can remit funds up to ₹50,000 to the bank account of a beneficiary through NEFT.

Banks are permitted to allow such customers to transfer funds to a bank account of a beneficiary through Business Correspondents (BCs) and ATMs up to a maximum amount of ₹5,000 per transaction with a monthly cap of ₹25,000 per remitter.

"Remitting banks / BCs shall register the remitter based on a verified cell phone number and a self-certified Officially Valid Document (OVD), as prescribed under the applicable Know Your Customer Directions, 2025 issued by the Reserve Bank, as amended from time to time," RBI said.

This facility allows delivery of cash up to ₹10,000 per transaction from bank accounts to a person not having the bank account at an ATM or through an agent appointed by bank.

"Banks are permitted to provide services which facilitate transfer of funds from the accounts of their customers for delivery in cash to the recipients not having bank accounts at an ATM or through an agent appointed as Business Correspondent, or through any other authorised payment channels," RBI said.

"The remitting bank shall obtain and keep a record of the name and address of the beneficiary. The maximum amount that may be transferred under the Cash Pay-out Service shall be ₹10,000 per transaction, subject to an overall monthly ceiling of ₹25,000 per beneficiary," it added.

The DMT directions do not cover card-to-card transfers. Fund transfers under these Directions are expected to be effected on a real-time or near-real-time basis.