New Delhi: The Reserve Bank of India (RBI) has given a unified set of directions to facilitate domestic money transfer services. The directions provide for enhanced security features and maintain transaction limits for cash based remittance.
The RBI (Domestic Money Transfer) Directions, 2026 were issued on November 11 and apply to scheduled commercial banks, regional rural banks, cooperative banks and authorised payment system operators/participants providing domestic money transfer services. These directions come into effect immediately.
Rs 50,000 Cash NEFT Limits Apply
Customers visiting a bank branch (without being a customer of that particular bank) can remit up to Rs 50,000 in cash to the beneficiary’s bank account using the National Electronic Funds Transfer (NEFT) service.
Banks can also allow customers to remit using business correspondents (BCs), ATMs or other permitted channels. Remittance limits of Rs 5,000 per transaction apply. This can be done up to a maximum of Rs 25,000 in a month.
The RBI has maintained that limits for cash based payout to beneficiaries who do not have a bank account still apply. Banks can enable customers to make payments via ATMs, BCs or other authorised channels.
Limits of up to Rs 10,000 per transaction apply. However, the maximum amount that can be paid out in a given month is Rs 25,000.
Verification Required
The RBI has maintained that remitters must provide their mobile number (verified) and an Officially Valid Document (OVD) that they self-certify to register. This is in line with the RBI’s KYC Directions, 2025.
All transactions must provide additional factor of authentication (AFA). Remitter information must be provided by banks and BCs in NEFT or Immediate Payment Service (IMPS) messages. A marker must also be included to indicate if the transaction is cash based.
This will help to ensure enhanced verification.
Monitoring Of Suspicious Transactions
The RBI has instructed banks and non-bank payment service providers to implement additional security measures such as velocity checks and alerts.
If there appears to be any abnormal rise in the number of credit transactions made to a particular account(s) then banks must investigate immediately. Suspicious transactions must be reported.
The RBI has said that transfers should be processed in real time or quasi-real time. Inter-bank settlements must be made through RBI approved payment systems.
Card To Card Transfers Not Included
The unified directions apply to domestic money transfer services provided by scheduled commercial banks (regional rural banks, urban cooperative banks, state cooperative banks and district central cooperative banks), authorised payment system operators/participants.
However, card to card transactions are not included and will continue to follow the guidelines applicable to the relevant payment instrument.
Banks and non-bank providers can also determine reasonable fees for domestic money transfer services. A complaints handling mechanism can also be set up. Complaints made under these directions will be covered by the RBI-Integrated Ombudsman Scheme, 2026.
The new directions replace previous circulars issued by the RBI on October 5, 2011 and July 24, 2024.