RBI Updates Money Transfer Rules: Check The Limits For Cash Remittances

The Reserve Bank of India (RBI) has issued consolidated directions for domestic money transfers, retaining existing transaction limits while strengthening safeguards for cash-based remittances.

Under the revised framework, walk-in customers without bank accounts can transfer up to Rs 50,000 in cash into bank accounts through the National Electronic Funds Transfer (NEFT) system.

Banks can facilitate such transfers through business correspondents, ATMs and other authorised channels, subject to a limit of Rs 5,000 per transaction and Rs 25,000 per remitter each month.

For cash payouts to beneficiaries without bank accounts, transfers through ATMs, business correspondents and other authorised channels will remain capped at Rs 10,000 per transaction and Rs 25,000 per beneficiary per month.

The central bank has retained these limits from its earlier framework. It has continued the requirement for remitter registration using a verified mobile number and a self-certified, officially valid document under its Know Your Customer (KYC) Directions, 2025.

Banks and business correspondents must include remitter details in IMPS and NEFT transaction messages, along with a specific identifier to distinguish cash-based transfers.

The RBI has mandated transaction monitoring, customer alerts, and prompt investigation of unusual credits, with suspicious activity reported to authorities.

Transfers must occur in real or near-real time, using RBI-approved settlement systems.

The rules cover banks and authorised payment operators, but exclude card-to-card transfers.

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