RBI consolidates Domestic Money Transfer rules into a single set of Directions

The Reserve Bank of India has issued the Reserve Bank of India (Domestic Money Transfer) Directions, 2026, under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007, with immediate effect. The Directions replace two earlier circulars (2011 and 2024) and bring all Domestic Money Transfer (DMT) rules, meant mainly for migrant workers and others without the documents needed for a regular bank account, into one instrument. Under "cash pay-out", a bank may transfer money from a customer's account for cash delivery to a recipient with no bank account, through an ATM, a Business Correspondent agent or another authorised channel, capped at Rs 10,000 per transaction and Rs 25,000 per beneficiary a month; the remitting bank must record the beneficiary's name and address.

Under "cash pay-in", a walk-in customer may remit up to Rs 50,000 to an account via NEFT at a branch, while transfers through Business Correspondents or ATMs are capped at Rs 5,000 per transaction and Rs 25,000 per remitter a month, with mandatory remitter registration using a verified mobile number and a self-certified Officially Valid Document under the KYC Directions, 2025, and an additional factor of authentication for every transaction. The Directions apply to scheduled commercial banks, regional rural banks, cooperative banks and authorised payment system operators and participants, and require velocity checks, credit alerts to customers, and reporting of unusual spikes. Grievances fall under the RBI Integrated Ombudsman Scheme, 2026.