RBI issues new domestic money transfer rules: Check cash transfer limits, charges and key changes

The Reserve Bank of India (RBI) has introduced new domestic money transfer rules, allowing customers to send money through banks, ATMs and authorised agents, even without a bank account. The directions, effective November 11, 2026, specify transaction limits, cash remittance procedures and safeguards against misuse.

The revised framework aims to make domestic remittances more accessible, particularly for migrant workers and individuals who rely on cash-based transfers to support families living elsewhere in India.

What are the cash pay-out limits?

Under the cash pay-out facility, customers can transfer money from their bank accounts to beneficiaries who do not maintain bank accounts.

The maximum amount permitted is ₹10,000 per transaction, subject to a monthly ceiling of ₹25,000 per beneficiary.

Recipients can collect cash through ATMs, Business Correspondents (BCs) or other authorised payment channels.

The remitting bank must maintain records of the beneficiary's name and address.

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Can customers without bank accounts transfer money?

Yes. Walk-in customers can deposit cash at bank branches and remit up to ₹50,000 to a beneficiary's bank account through the National Electronic Funds Transfer (NEFT) system.

Banks may also facilitate transfers through ATMs and BC agents.

However, these transactions are restricted to ₹5,000 per transfer, with a monthly limit of ₹25,000 per remitter.

Banks and agents must comply with applicable cash deposit provisions under the Income-Tax Act, 2025.

What safeguards has RBI introduced?

The central bank has directed banks and non-bank entities to strengthen transaction monitoring and prevent misuse.

Institutions must monitor transaction frequency, investigate unusual increases in credits and report suspicious transactions to the relevant authorities.

Customers must also receive alerts when funds are credited through domestic money transfer facilities.

Additionally, remitting banks must include sender details in IMPS or NEFT transaction messages and identify cash-based remittances.

Transfers should be processed in real time or as close to real time as possible.

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What charges will customers pay?

The RBI has permitted banks and non-bank entities to determine reasonable charges for domestic money transfer services.

The directions do not prescribe a uniform fee structure.

Service providers must also establish appropriate customer grievance redressal mechanisms.

Which banks are covered?

The directions apply to scheduled commercial banks, 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, wherever applicable.

Inter-bank settlements must use RBI-approved payment systems.

However, card-to-card transfers remain outside the framework and will continue to be governed by separate regulations applicable to those payment instruments.

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