RBI Money Transfer Rules: Walk-In NEFT Capped at Rs 50,000

The Reserve Bank of India has issued the Reserve Bank of India (Domestic Money Transfer) Directions, 2026, a single rulebook for small-value transfers made through formal banking channels. The directions took effect immediately when they were issued this week (11 November, according to most reports; Business Standard gives 10 November). They apply to scheduled commercial banks, regional rural banks, urban and state co-operative banks, district central co-operative banks and authorised payment system operators.

Caps on Cash Transfers

Reports based on the directions say a customer can send a cash pay-out of up to Rs 10,000 per transaction to a beneficiary who has no bank account, with a ceiling of Rs 25,000 a month for each beneficiary. Walk-in customers who deposit cash at a branch for an NEFT transfer can send up to Rs 50,000, Business Standard and Rediff reported. Transfers routed through business correspondents or ATMs are limited to Rs 5,000 a transaction and Rs 25,000 a month per sender.

Senders have to be registered with a verified mobile number and a self-certified Officially Valid Document. Every transaction needs an additional authentication factor, and banks must run velocity checks and alerts to catch sudden surges of credits into an account.

Also read RBI Cyber Security Rules for UPI, Wallets, Card Networks Take Effect

Old Circulars Replaced

The directions consolidate earlier instructions on domestic money transfer and repeal the circulars they replace, so banks now work from one document instead of several. The extra checks follow a stretch in which the Supreme Court has pressed banks and the RBI on cyber fraud; IPB News reported on that hearing in its story on banks being asked to compensate digital arrest victims.

The RBI tag page carries IPB News reports on the central bank’s earlier circulars.

Banks Must Update Their Counters

Because the directions are already in force, branches and payment operators will need to apply the caps and authentication steps to new transfers at once. The RBI has not announced a separate review date. Customers who send money to relatives without bank accounts can check their bank’s notice for how it applies the Rs 10,000 and Rs 25,000 limits.

Source: Based on reporting by Business Standard, Hindustan Times and Rediff.

Image: IPB News file photo.