The Reserve Bank of India (RBI) has issued the Domestic Money Transfer Directions, 2026, consolidating the existing instructions governing small-value domestic fund transfers. The directions, dated November 11, apply to scheduled commercial banks, regional rural banks, cooperative banks and authorised payment system operators, and are effective immediately.
The central bank said the framework is intended to harmonise rules for domestic money transfers, including cash pay-in and cash pay-out services. The limits largely retain the existing ceilings while setting out operational safeguards and customer information requirements.
Key money transfer limits
- NEFT at a bank branch: A walk-in customer can remit up to ₹50,000 to a beneficiary’s bank account.
- Cash payout: Up to ₹10,000 per transaction, subject to a monthly ceiling of ₹25,000 per beneficiary.
- Cash pay-in through business correspondents or ATMs: Up to ₹5,000 per transaction, with a monthly cap of ₹25,000 per remitter.
What changes for customers?
The directions consolidate instructions for domestic money transfer services and clarify how banks and authorised participants can facilitate transfers for people who may not have easy access to conventional banking channels. For cash payout, the remitting bank must obtain and maintain the beneficiary’s name and address.
Under cash pay-in, a walk-in customer at a bank branch can deposit funds for transfer to a beneficiary’s bank account through NEFT, up to the prescribed ₹50,000 limit. Banks may also facilitate smaller transfers through business correspondents and ATMs within the stated per-transaction and monthly limits.
Do the new rules increase the transfer limit?
The ₹50,000 branch NEFT limit is not a newly raised ceiling. The RBI has consolidated the existing domestic money transfer instructions and retained the stated limits. The directions also require operational safeguards, monitoring, inter-bank settlement arrangements, charges and customer grievance redressal.
Customers should check applicable bank charges and service availability with their bank or authorised service provider before making a transfer.
Official source
Reserve Bank of India: Domestic Money Transfer Directions, 2026 (November 11, 2026) | The Economic Times
