The Reserve Bank of India (RBI) on November 11, 2026 consolidated its existing instructions on domestic money transfers into a single set of directions, retaining the transaction limits prescribed under the framework and formalising safeguards for cash-based remittances. According to reports from Business Standard, the central bank has subsumed and repealed its October 5, 2011, circular on relaxations in domestic money transfers and the July 24, 2024, circular reviewing the framework with the issuance of the new directions. The revised framework, now known as Reserve Bank of India (Domestic Money Transfer) Directions, 2026, represents a comprehensive update to the previous guidelines and is effective immediately. As per the RBI's covering letter, the Directions are issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 and are signed by Sara Rajendra Kumar Neti, Chief General Manager-in-Charge.
For cash-based remittances into bank accounts, walk-in customers at bank branches (not necessarily having an account with the same bank) can transfer up to ₹50,000 in cash through the National Electronic Funds Transfer (NEFT) system. Banks can also allow such customers to transfer funds through business correspondents (BCs), ATMs and other permitted channels, subject to a limit of ₹5,000 per transaction and a monthly cap of ₹25,000 per remitter. As reported by The Hindu BusinessLine, the revised directions specifically allow banks to provide cash pay-out service for amounts transferred from bank accounts to recipients without bank accounts, capped at ₹10,000 per transaction with a monthly ceiling of ₹25,000 per beneficiary. Banks must obtain and keep a record of the beneficiary's name and address when providing cash pay-out services. The ₹10,000 pay-out cap and ₹50,000 walk-in ceiling remain unchanged since the 2011 framework, with no modifications made in the 2026 consolidation.
The RBI has retained requirements for remitter registration based on a verified mobile phone number and a self-certified officially valid document (OVD), as prescribed under its Know Your Customer Directions, 2025. Every transaction must be validated through an additional factor of authentication (AFA). According to the new directions, remitting banks and BCs must include the details of the remitter in the Immediate Payment Service (IMPS) or NEFT transaction message, with the transaction message carrying an identifier to distinguish cash-based remittances. As reported by The Hindu BusinessLine, remitting banks and their BCs must comply with the applicable provisions of the Income-Tax Act, 2025, and the rules/regulations framed thereunder, as amended from time to time, pertaining to cash deposits. Banks and non-banks must put in place safeguards, including velocity checks and alerts to customers regarding credits into accounts through these facilities.
Fund transfers under the framework are expected to be effected on a real-time or near-real-time basis, with inter-bank settlement carried out only through RBI-approved payment systems. According to The Hindu BusinessLine, the revised directions allow banks and non-banks to fix reasonable charges for DMT services to popularise the facility. The Directions apply to all scheduled commercial banks, including regional rural banks, urban co-operative banks, state co-operative banks and district central co-operative banks, as well as authorised payment system operators and participants. Card-to-card transfers have been excluded from the scope of the directions and will continue to be governed by the guidelines and approvals applicable to the respective payment instruments. The consolidation represents a harmonisation and consolidation effort, eliminating the need for banks to reconcile two circulars to understand what applies, as the framework was previously a patchwork of the 2011 circular and the 2024 review circular.
