New Delhi: The Reserve Bank of India (RBI) has introduced new Domestic Money Transfer (DMT) Directions, 2026, setting out transaction limits, KYC requirements and security measures for domestic money transfers. Issued on November 11, 2026, the new directions came into immediate effect.
Under the revised framework, customers can transfer up to ₹10,000 per transaction through cash pay-out services, subject to a monthly limit of ₹25,000 per beneficiary. Meanwhile, walk-in customers can remit up to ₹50,000 to a beneficiary’s bank account through NEFT at a bank branch.
The RBI’s new rules aim to consolidate existing instructions and facilitate small-value money transfers through formal banking channels, particularly for migrant workers and people who may not have easy access to banking services.
What Are RBI’s New Domestic Money Transfer Rules?
The RBI Domestic Money Transfer Directions, 2026, establish a consolidated framework for transferring money within India through authorised banking channels.
The framework applies to scheduled commercial banks, including Regional Rural Banks (RRBs), Urban Co-operative Banks, State Co-operative Banks and District Central Co-operative Banks. It also covers authorised payment system operators and participants, including banks and non-bank entities, wherever applicable.
However, card-to-card transfers are excluded from these directions and will continue to be governed by the applicable payment instrument guidelines.
RBI Domestic Money Transfer Limits 2026
The RBI has prescribed different transaction limits depending on how money is transferred and received.
| Transfer Type | Transaction Limit | Monthly Limit |
|---|---|---|
| Cash pay-out to beneficiary | ₹10,000 | ₹25,000 per beneficiary |
| Cash pay-in through BCs/ATMs | ₹5,000 | ₹25,000 per remitter |
| Bank branch NEFT transfer | ₹50,000 | No separate monthly cap specified in these directions |
These limits apply to the respective services under the RBI’s new DMT framework.
1. Money Transfer to People Without Bank Accounts
One of the important features of the DMT framework is its provision for beneficiaries who do not have bank accounts.
Banks can facilitate transfers from a customer’s bank account to recipients who can collect the money in cash through:
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ATMs.
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Business Correspondents (BCs).
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Other authorised payment channels.
Under the cash pay-out facility, the maximum amount allowed is ₹10,000 per transaction, with an overall monthly ceiling of ₹25,000 per beneficiary.
The remitting bank must also obtain and maintain the beneficiary’s name and address.
What Is a Business Correspondent?
A Business Correspondent is an authorised retail agent who provides basic banking services on behalf of a bank. These agents help customers access banking facilities, particularly in locations where bank branches are not easily accessible.
2. Money Transfer Directly to a Bank Account
The RBI has also specified limits for cash-based transfers that are credited directly to a beneficiary’s bank account.
Through a bank branch: A walk-in customer can deposit cash and remit up to ₹50,000 to a beneficiary’s bank account through the National Electronic Funds Transfer (NEFT) system.
Through Business Correspondents and ATMs: Banks can facilitate transfers of up to ₹5,000 per transaction, subject to a monthly limit of ₹25,000 per remitter.
These provisions allow customers to send money through authorised channels even when they do not use conventional digital banking services.
3. KYC Requirements for Domestic Money Transfers
The RBI has strengthened customer identification requirements to improve transparency and security.
Under the new directions, remitting banks and Business Correspondents must register the remitter using:
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A verified mobile phone number.
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A self-certified Officially Valid Document (OVD), as prescribed under the applicable RBI Know Your Customer Directions, 2025.
Every transaction must also be validated through an Additional Factor of Authentication (AFA).
Furthermore, banks must include the remitter’s details in the IMPS or NEFT transaction message. The transaction message must also carry an identifier indicating that the transfer is a cash-based remittance.
4. Security Measures and Monitoring of Transactions
The RBI has instructed banks and non-bank entities to establish appropriate operational safeguards to monitor domestic money transfers.
These measures include velocity checks and alerts to customers regarding credits received through the facilities covered by the directions.
If banks identify an unusual increase in the volume of credits in an individual account or a group of accounts, they must investigate the activity immediately.
Suspicious transactions must also be reported to the appropriate authorities.
The directions further require compliance with applicable provisions of the Income-tax Act, 2025, and related rules concerning cash deposits.
Yes. Banks and non-bank entities may determine reasonable charges for Domestic Money Transfer services, subject to applicable conditions.
The RBI has also allowed these institutions to establish appropriate customer grievance redressal systems for complaints arising from DMT services.
Customer grievances under the new directions will fall within the scope of the Reserve Bank – Integrated Ombudsman Scheme, 2026.
6. When Did the New RBI Money Transfer Rules Come Into Effect?
The Reserve Bank of India issued the Domestic Money Transfer Directions, 2026, on November 11, 2026.
The directions became effective immediately upon issuance. They also consolidate and replace the earlier RBI circulars dated October 5, 2011, and July 24, 2024.
The revised framework is particularly relevant for people who depend on cash-based banking services to send money to family members or other beneficiaries.
Migrant workers, people in remote areas and customers with limited access to conventional banking facilities may benefit from the availability of authorised money transfer channels.
At the same time, mandatory authentication, customer registration and transaction monitoring are intended to strengthen transparency and reduce the risk of suspicious financial activity.
Frequently Asked Questions (FAQs)
1. What is the maximum amount that can be transferred under RBI’s new DMT rules?
Under the cash pay-out service, the maximum transfer amount is ₹10,000 per transaction, subject to a monthly limit of ₹25,000 per beneficiary.
2. Can a person transfer ₹50,000 through NEFT at a bank branch?
Yes. A walk-in customer can remit up to ₹50,000 to a beneficiary’s bank account through NEFT at a bank branch.
3. What is the monthly limit for money transfers through Business Correspondents?
For cash pay-in transfers through Business Correspondents and ATMs, the limit is ₹5,000 per transaction, with a monthly ceiling of ₹25,000 per remitter.
4. Is KYC mandatory for domestic money transfers?
Yes. Remitting banks and Business Correspondents must register customers using a verified mobile number and a self-certified Officially Valid Document (OVD).
5. Is additional authentication required for every transaction?
Yes. Every transaction undertaken by a remitter must be validated through an Additional Factor of Authentication (AFA).
6. When did RBI’s new domestic money transfer rules become effective?
The RBI issued the Domestic Money Transfer Directions, 2026, on November 11, 2026, and they came into effect immediately.
Conclusion
The RBI’s Domestic Money Transfer Directions, 2026, introduce a consolidated regulatory framework for small-value domestic money transfers in India. With clearly defined transaction limits, customer registration requirements, additional authentication and stronger monitoring provisions, the framework aims to make cash-based money transfers more transparent and secure.
For customers using these services, understanding the applicable transaction limits and KYC requirements will be important when sending or receiving money through banks, ATMs and authorised Business Correspondents.
