RBI domestic money transfer rules 2026: cash limits of ₹10,000, ₹5,000 and ₹50,000
RBI merged its cash-based money transfer rules on 11 November 2026. Cash pay-out is ₹10,000 a time, ₹25,000 a month. UPI and card payments are not covered.
On 11 November 2026 the Reserve Bank of India (RBI) issued the Reserve Bank of India (Domestic Money Transfer) Directions, 2026. Several news reports called them "new rules". The RBI's own text says something narrower. It says the directions harmonise and consolidate the instructions already in force for domestic money transfer (DMT), and it repeals two earlier circulars: the one of 5 October 2011 and the one of 24 July 2024.
So this is mainly a tidy-up of one rulebook into one document. We have not compared each limit with the old circulars, so we are not calling any limit a change. The directions took effect immediately, on 11 November 2026.
What DMT is, and who it is for
DMT is a way to send small amounts of money in cash through formal banking channels. It is meant for people who have no bank account, such as many migrant workers sending money to family. If you pay by UPI, card or from your own bank account to another bank account, you are not using DMT and nothing here changes your payments.
Card-to-card transfers are excluded from these directions. They follow the rules for the card or payment instrument used.
Cash pay-out: bank account to cash
A bank may let a customer send money from their account so that the receiver gets cash at an ATM, at a business correspondent (BC, a bank's local agent) or through another authorised channel. The receiver needs no bank account.
- The limit is ₹10,000 per transaction.
- The overall ceiling is ₹25,000 a month per beneficiary.
- The sending bank must record the name and address of the receiver.
Cash pay-in: cash to a bank account
A person without an account can hand over cash and have it sent to someone's bank account.
- At a bank branch, a walk-in customer can send up to ₹50,000 to a beneficiary's account through NEFT.
- Through business correspondents, ATMs and similar channels, the limit is ₹5,000 per transaction and ₹25,000 a month per sender.
- The sender must be registered with a verified mobile number and a self-certified officially valid document (OVD), as set out in RBI's KYC Directions, 2025.
- Every transaction needs an additional factor of authentication.
- The bank must follow the cash deposit provisions of the Income-tax Act, 2025.
- The IMPS or NEFT message must carry the sender's details and a marker showing that it is a cash-based remittance.
Safeguards against misuse
Banks and non-bank operators must run velocity checks and alert customers when money is credited to their accounts through these facilities. A sudden rise in credits to one account or a group of accounts must be investigated at once, and suspicious transactions must be reported to the authorities. Transfers are expected to happen in real time or close to it, and settlement between banks must use RBI-approved payment systems.
Charges and complaints
Banks and non-banks may set reasonable charges for DMT. The directions do not give a fee figure, so ask the bank or agent for the charge before you send. Complaints fall under the Reserve Bank - Integrated Ombudsman Scheme, 2026. Start with the bank, and if it does not solve the problem, you can complain to the Ombudsman.
What to do
- If you send cash through an agent, ask for the fee in writing and keep the transaction message.
- Never share your OTP or let an agent keep your ID document.
- If someone asks you to receive and forward cash from your account for a commission, do not do it. Sudden credits to an account are exactly what banks are told to investigate, and such accounts are used in "mule" frauds.
Sources: RBI Domestic Money Transfer Directions, 2026, 11 November 2026, Moneycontrol: RBI caps cash transfers under domestic money transfer services at Rs 10,000, consolidates DMT rules, 11 November 2026, The Hindu BusinessLine: RBI revises domestic money transfer rules, 11 November 2026
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Posts never contain referral or affiliate links from the writer.
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