New Delhi: The Reserve Bank of India (RBI) has introduced consolidated guidelines for Domestic Money Transfer (DMT) services, specifying transaction limits, monthly transfer ceilings, customer verification requirements and security measures for money transfers within India. The RBI Domestic Money Transfer Directions, 2026, were issued on November 11 and came into effect immediately.
Under the updated framework, customers can transfer up to ₹10,000 per transaction to beneficiaries without bank accounts through cash payout services, subject to a monthly limit of ₹25,000 per beneficiary. For transfers into bank accounts, walk-in customers can remit up to ₹50,000 through the National Electronic Funds Transfer (NEFT) system at bank branches.
The RBI’s revised directions also establish specific requirements for transactions conducted through Business Correspondents (BCs), ATMs and other authorised payment channels. These include verified mobile numbers, self-certified identity documents and Additional Factor of Authentication (AFA) for every transaction.
The framework is particularly relevant for migrant workers and people who need to send money to family members or other beneficiaries who may not have access to conventional banking facilities.
What Are the RBI Domestic Money Transfer Rules 2026?
The RBI Domestic Money Transfer Directions, 2026, bring together the existing regulatory instructions governing domestic money transfer services under a consolidated framework.
The central bank issued the directions under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007.
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-banks, to the extent applicable to their respective DMT services.
Card-to-card transfers are excluded from these directions and continue to be governed by the applicable guidelines for their respective payment instruments.
RBI Domestic Money Transfer Limits 2026: How Much Can You Send?
The RBI has prescribed different transaction limits depending on the method used to transfer money and whether the beneficiary has a bank account.
1. Cash Transfers to Beneficiaries Without Bank Accounts
The updated framework allows banks to facilitate transfers from customers’ bank accounts to recipients who do not have bank accounts.
The transferred amount can be delivered through:
ATMs.
Business Correspondents appointed by banks.
Other authorised payment channels.
Under this cash payout facility, the applicable limits are:
| Transfer condition | Maximum amount |
|---|---|
| Per transaction | ₹10,000 |
| Monthly limit per beneficiary | ₹25,000 |
The remitting bank must maintain the beneficiary’s name and address as part of the transaction records.
This facility can help people who do not have conventional banking access receive money through authorised banking channels.
2. Money Transfers to Bank Accounts Through Bank Branches
The RBI directions also allow walk-in customers to send money to a beneficiary’s bank account through NEFT at a bank branch.
The maximum permitted amount under this facility is ₹50,000.
NEFT is an electronic payment system that enables customers to transfer money between bank accounts.
This provision offers another option for people who want to send money without necessarily using digital banking facilities or maintaining an online banking relationship.
3. Transfers Through Business Correspondents and ATMs
Banks can also facilitate transfers to beneficiaries’ bank accounts through Business Correspondents and ATMs.
The applicable limits are:
| Transfer condition | Maximum amount |
|---|---|
| Per transaction | ₹5,000 |
| Monthly limit per remitter | ₹25,000 |
These limits apply to the specified transfer facility through Business Correspondents, ATMs and other permitted channels under the directions.
What Are Business Correspondents (BCs)?
Business Correspondents are authorised retail agents who provide basic banking services on behalf of banks.
They help extend banking services to locations where customers may not have convenient access to traditional bank branches.
Depending on the services authorised by the bank, BCs can assist customers with activities such as cash deposits, withdrawals and money transfers.
The RBI’s DMT framework recognises Business Correspondents as an important channel for facilitating domestic remittances.
RBI KYC Requirements for Domestic Money Transfers
The revised directions strengthen customer identification and transaction authentication requirements.
Banks and Business Correspondents providing remittance services must register the person sending money using the following details:
A verified mobile phone number.
A self-certified Officially Valid Document (OVD), as prescribed under the applicable RBI Know Your Customer Directions, 2025.
An Officially Valid Document is an identity document recognised under the applicable KYC regulations.
Additional Factor of Authentication Is Mandatory
Every transaction initiated by a registered remitter must be validated through an Additional Factor of Authentication (AFA).
AFA refers to an additional verification step used to establish the authenticity of a payment instruction.
The remitting bank must also include the remitter’s details in the relevant Immediate Payment Service (IMPS) or NEFT transaction message, as applicable.
In addition, banks and Business Correspondents must comply with the applicable provisions of the Income-tax Act, 2025.
RBI Introduces Monitoring and Security Safeguards
The directions require banks and relevant service providers to maintain operational safeguards and monitor domestic money transfer activity.
Frequent transfers to the same beneficiary may require closer examination under the applicable monitoring framework.
Where transactions appear suspicious, banks must take appropriate action, investigate the relevant accounts and report suspicious activity to the competent authorities in accordance with applicable requirements.
These safeguards are intended to strengthen monitoring, improve transaction traceability and reduce the risk of misuse of domestic money transfer services.
Will Banks Charge Fees for Domestic Money Transfers?
The RBI directions allow banks and non-bank entities, as applicable, to determine reasonable charges for Domestic Money Transfer services.
The objective is to encourage the wider use of the facility while ensuring that charges remain subject to applicable regulatory conditions.
Customers should therefore check the applicable service charges with their bank or authorised service provider before initiating a transaction.
How Can Customers Raise Complaints About DMT Services?
Banks and non-bank service providers can establish appropriate systems to address customer grievances arising from Domestic Money Transfer services.
The RBI directions also provide that complaints under this framework fall within the scope of the Reserve Bank – Integrated Ombudsman Scheme, 2026, as amended from time to time.
Customers should initially approach their bank or service provider through its designated grievance redressal channel.
Why the RBI Domestic Money Transfer Framework Matters
Domestic money transfers play an important role in India’s banking ecosystem, particularly for people who send money to family members in different cities, towns and villages.
The framework is especially relevant for migrant workers and beneficiaries who may not have easy access to conventional banking facilities.
By setting out clear transaction limits, customer identification requirements and monitoring standards, the RBI aims to strengthen the formal domestic remittance system.
The updated directions also consolidate earlier regulatory instructions, helping banks and payment service providers follow a common framework for domestic money transfer services.
Conclusion
The RBI Domestic Money Transfer Directions, 2026, establish a consolidated regulatory framework for domestic remittances in India. With cash payout limits of ₹10,000 per transaction, a ₹25,000 monthly beneficiary ceiling and separate provisions for bank-account transfers, the directions clarify how different DMT channels can operate.
Customers should understand the applicable transaction limits, complete the required KYC registration and use authorised banking channels when sending money.
The new framework has been effective since November 11, 2026.
3. Important Facts and Developments
The following information is taken from the official RBI directions.
RBI Domestic Money Transfer: Key Limits
₹10,000
Maximum cash payout per transaction
₹25,000
Monthly cash payout limit per beneficiary
₹50,000
Branch walk-in NEFT transfer limit
₹5,000
Per transaction through BCs and ATMs into bank accounts
₹25,000
Monthly transfer limit per remitter through BCs and ATMs
11 Nov
2026: Date of issuance and commencement
Source: RBI Domestic Money Transfer Directions, 2026.
Other important regulatory requirements:
Verified mobile number registration is mandatory.
Self-certified Officially Valid Document (OVD) is required.
Additional Factor of Authentication is compulsory for every transaction.
Beneficiary name and address must be recorded for cash payouts.
Remitter details and a cash-based remittance identifier must be included in relevant transaction messages.
Banks must implement transaction monitoring, velocity checks and customer alerts.
Inter-bank settlements must use RBI-approved payment systems.
4. Why This News Matters
The RBI’s updated domestic money transfer framework is important for several reasons:
Financial inclusion: It supports people who do not have easy access to traditional banking services.
Migrant workers: It provides regulated channels for sending money to family members in other parts of India.
Better transaction monitoring: Banks must introduce safeguards to identify unusual transaction activity.
Clearer transfer limits: Customers and service providers can refer to specified transaction and monthly ceilings.
Stronger customer verification: Verified mobile numbers, OVD documents and additional authentication improve transaction traceability.
Regulatory consistency: The directions consolidate earlier DMT instructions issued in 2011 and 2024.
5. Frequently Asked Questions (FAQs)
1. What are the new RBI Domestic Money Transfer rules for 2026?
The RBI issued consolidated Domestic Money Transfer Directions on November 11, 2026. They establish transfer limits, KYC requirements, authentication standards, monitoring safeguards and grievance redressal provisions.
2. What is the maximum cash transfer limit under RBI DMT rules?
The maximum cash payout is ₹10,000 per transaction, subject to an overall monthly ceiling of ₹25,000 per beneficiary.
3. Can I 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 under the RBI directions.
4. What is the monthly money transfer limit through Business Correspondents?
For the specified bank-account transfer facility through Business Correspondents, ATMs and similar channels, the maximum is ₹5,000 per transaction and ₹25,000 per month per remitter.
5. What documents are required for domestic money transfers?
The remitter must be registered using a verified mobile phone number and a self-certified Officially Valid Document (OVD), as prescribed under the applicable RBI KYC Directions, 2025.
6. Is Aadhaar mandatory for every domestic money transfer?
The directions specify a self-certified OVD under the applicable KYC framework. They do not independently state that Aadhaar is mandatory for every DMT transaction. Customers should check the applicable OVD requirements with their bank.