Reserve Bank of India Sets New Domestic Money Transfer Limits

The Reserve Bank of India issued the Domestic Money Transfer Directions, 2026, on November 11 to establish a consolidated framework for fund transfers through banks and authorized payment system operators. The regulations specifically target individuals lacking formal identity or address proof, such as migrant workers, to ensure they can perform small-value transfers.

Under the new norms, walk-in customers may remit up to ₹50,000 to a beneficiary's bank account via NEFT. Transfers conducted through ATMs and Business Correspondents are capped at ₹5,000 per transaction and ₹25,000 per month per remitter. For recipients without bank accounts, the Cash Pay-out Service allows transfers limited to ₹10,000 per transaction with a monthly ceiling of ₹25,000 per beneficiary.

To prevent fraud and money laundering, the framework mandates customer verification using verified mobile numbers and self-certified documents, alongside Additional Factor of Authentication for every transaction. Banks and non-bank operators must implement velocity checks and immediately investigate any unusual spikes in credit volumes. These directions apply to scheduled commercial, regional rural, and co-operative banks, though card-to-card transfers remain excluded from the scope of these rules.