RBI issues Domestic Money Transfer Directions, 2026: Rs 10,000 cash pay-out, Rs 50,000 walk-in NEFT, one rulebook replaces 2011 and 2024 circulars
TaxByKK · Compliance News · taxbykk.com11 Nov 2026
In short
The Reserve Bank has issued the Reserve Bank of India (Domestic Money Transfer) Directions, 2026, which bring the rules for sending money to people without bank accounts into one document and repeal the circulars of 5 October 2011 and 24 July 2024. Cash pay-out to a beneficiary is capped at Rs 10,000 per transaction and Rs 25,000 a month per beneficiary. A walk-in customer can send up to Rs 50,000 by NEFT to a bank account, and up to Rs 5,000 per transaction (Rs 25,000 a month per remitter) through business correspondents or ATMs. The Directions are effective immediately.
- Authority
- Reserve Bank of India, Department of Payment and Settlement Systems
- Document
- RBI/DPSS/2026-27/476, CO.DPSS.POLC.No.S843/02-27-019/2026-2027
- Date
- 11 November 2026
- Type
- Directions
- Legal basis
- Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007
- Applies to
- Scheduled commercial banks including RRBs, urban, state and district central co-operative banks, and authorised payment system operators and participants
- Effective from
- Immediately
- Repeals
- DPSS.PD.CO.No. 622/02.27.019/2011-2012 of 5 October 2011 and CO.DPSS.POLC.No.S415/02.27.019/2024-25 of 24 July 2024
What changed
| Item | Before | Now |
|---|---|---|
| Cash pay-out to a beneficiary without a bank account (ATM, business correspondent or other channel) | Separate 2011 and 2024 circulars | Rs 10,000 per transaction, Rs 25,000 a month per beneficiary; remitting bank keeps the beneficiary's name and address |
| Walk-in customer sending to a bank account | Separate 2011 and 2024 circulars | Up to Rs 50,000 by NEFT at a branch; up to Rs 5,000 per transaction and Rs 25,000 a month per remitter through business correspondents or ATMs |
| Remitter checks | Separate circulars | Verified mobile number and self-certified OVD under the KYC Directions, 2025; Additional Factor of Authentication on every transaction |
| Monitoring | Separate circulars | Velocity checks, customer alerts on credits, immediate probe of unusual spurts in credits, alerts to authorities on suspicious transactions |
| Grievances | Separate circulars | Within the Reserve Bank - Integrated Ombudsman Scheme, 2026 |
The Directions say they consolidate and harmonise earlier instructions. They do not say whether any limit differs from the 2011 and 2024 circulars, which are not reproduced in the document. Charges are left to banks and non-banks, who may fix reasonable charges.
Who it applies to
- Banks and business correspondents running money transfer services
- Non-bank payment system operators and participants
- Migrant workers and others who send cash to family without a bank account
- Compliance officers, CAs and lawyers advising banks and payment operators
What to do
- Banks and operators: replace references to the 2011 and 2024 circulars with these Directions in policies and agent manuals.
- Check that remitter registration uses a verified mobile number and a self-certified OVD, with an Additional Factor of Authentication on every transaction.
- Make sure transaction messages carry the remitter details and an identifier marking the transfer as cash-based.
- Apply the Income-tax Act, 2025 provisions on cash deposits.
- Customers: expect the limits above on cash remittance; complaints can go to the RBI Integrated Ombudsman.
Reference
Reserve Bank of India (Domestic Money Transfer) Directions, 2026, RBI/DPSS/2026-27/476 dated 11 November 2026, issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007.
Read the official PDF: RBI DMT Directions 2026Written by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
What is the cash pay-out limit?
Rs 10,000 per transaction and Rs 25,000 a month per beneficiary.
How much can a walk-in customer send by NEFT?
Up to Rs 50,000 to a beneficiary's bank account.
Are card-to-card transfers covered?
No. They are excluded and follow the rules for the respective payment instruments.
Where can a customer complain?
The Directions bring such complaints within the Reserve Bank - Integrated Ombudsman Scheme, 2026.