RBI issues domestic transfer norms; walk-in customers can send up to ₹50k

The framework for Domestic Money Transfer (DMT) was introduced in order to facilitate small-value fund transfers through formal banking channels.

Walk-in customers at bank branches can utilise the cash pay-in service to remit funds up to ₹50,000 directly to a beneficiary's bank account through NEFT, the Reserve Bank said on Wednesday.

With a view to harmonising and consolidating the extant instructions relating to Domestic Money Transfer (DMT), the central bank has issued the Reserve Bank of India (Domestic Money Transfer) Directions, 2026.

The framework for Domestic Money Transfer (DMT) was introduced in order to facilitate small-value fund transfers through formal banking channels, particularly for persons, including migrant workers, who lack access to such channels due to lack of proof of identity/address.

"A walk-in customer at a bank branch can remit funds up to ₹50,000 to the bank account of a beneficiary through NEFT," said the RBI's latest Directions, which came into effect from Wednesday.

Banks are also permitted to allow such customers to transfer funds to a bank account of a beneficiary through Business Correspondents (BCs) and ATMs up to a maximum amount of ₹5,000 per transaction with a monthly cap of ₹25,000 per remitter.

RBI further said banks are permitted to provide services, which facilitate transfer of funds from the accounts of their customers for delivery in cash to the recipients not having bank accounts at an ATM or through an agent appointed as Business Correspondent, or through any other authorised payment channels.

On payment of amounts transferred from a bank account (Cash Pay-out Service), banks are permitted to provide services which facilitate transfer of funds from the accounts of their customers for delivery in cash to the recipients not having bank accounts at an ATM or through an agent appointed as Business Correspondent, or through any other authorised payment channels.

"The maximum amount that may be transferred under the Cash Pay-out Service shall be ₹10,000 per transaction, subject to an overall monthly ceiling of ₹25,000 per beneficiary," the RBI said.

Card-to-card transfers are excluded from the purview of the Directions.

RBI further said banks and non-banks should put in place robust systems of safeguards, including velocity checks and alerts to customers regarding credits into accounts using the facilities provided under the Directions.

"Any unusual spurt in the volume of credits in a particular account or group of accounts shall be investigated immediately," it said, and added appropriate authorities should be alerted regarding suspicious transactions.

Fund transfers under the facility are expected to be effected on a real-time or near real-time basis, the Reserve Bank said.