The Reserve Bank of India (RBI) has issued a consolidated framework for domestic money transfers, allowing individuals without bank accounts to send up to ₹50,000 in cash to a beneficiary’s bank account through a bank branch using the National Electronic Funds Transfer (NEFT) system. The new rules are part of the RBI’s Domestic Money Transfer Directions, 2026, issued on November 11.
The directions aim to make small-value domestic remittances more accessible while strengthening customer verification and monitoring requirements. They cover cash-based transfers through bank branches, Business Correspondents (BCs), ATMs and other authorised channels. The framework is particularly relevant for people who rely on cash for everyday transactions, including migrant workers and individuals who do not have access to conventional banking services.
RBI Sets ₹50,000 Limit for Cash Pay-in Transfers
Under the new directions, a walk-in customer visiting a bank branch can deposit cash and transfer up to ₹50,000 to another person’s bank account through NEFT.
A walk-in customer does not necessarily need to hold an account with the bank handling the transaction. The facility allows people without bank accounts to use formal banking infrastructure to send money to beneficiaries who have bank accounts.
The RBI has also permitted banks to facilitate cash pay-in transfers through Business Correspondents, ATMs and other authorised channels. However, these routes have lower limits.
The prescribed limits are:
| Transfer channel | Maximum per transaction | Monthly limit |
|---|---|---|
| Bank branch through NEFT | ₹50,000 | No separate monthly ceiling specified in the direction |
| Business Correspondent | ₹5,000 | ₹25,000 per sender |
| ATM and other permitted channels | ₹5,000 | ₹25,000 per sender |
The ₹50,000 limit applies specifically to cash transfers made by walk-in customers at bank branches through NEFT. It should not be interpreted as a universal limit for every cash-based transfer channel.
What Is the Cash Pay-in Service?
The cash pay-in service allows an individual to deposit physical currency with a bank or authorised banking agent and transfer the money into another person’s bank account.
For example, a worker who does not have a bank account can visit a bank branch, provide the required identification details and deposit cash for transfer to a family member’s account.
The beneficiary receives the money directly in their bank account through NEFT or another permitted payment channel.
This facility is different from a conventional bank transfer, where the sender initiates the transaction using funds already held in their own account.
The cash pay-in service is intended to make formal money-transfer channels available to people who primarily deal in cash.
RBI Also Sets Limits for Cash Pay-out Service
The RBI’s new directions also cover the cash pay-out service, which allows customers with bank accounts to send money to recipients who do not have bank accounts.
Under this arrangement, the sender transfers money from their bank account, while the beneficiary collects the amount in cash through an ATM, a Business Correspondent or another authorised payment channel.
The central bank has prescribed the following limits:
- Maximum transfer per transaction: ₹10,000.
- Monthly limit: ₹25,000 per beneficiary.
Banks must maintain records of the beneficiary’s name and address.
The cash pay-out facility is particularly useful for people who receive money from relatives or employers but do not have a bank account through which they can access the funds.
Together, the cash pay-in and cash pay-out services allow money to move between cash users and bank-account holders through regulated financial channels.
KYC and Authentication Requirements for Senders
Although the RBI has expanded access to cash-based transfers, it has also specified verification requirements to reduce the risk of fraud and misuse.
Under the directions, banks and Business Correspondents must register cash pay-in remitters using:
- A verified mobile phone number.
- A self-certified Officially Valid Document (OVD), as prescribed under the RBI’s applicable Know Your Customer Directions, 2025.
Every transaction must also be validated through an Additional Factor of Authentication (AFA).
This means that providing basic identification details alone is not sufficient. The transaction must pass an additional authentication check before it is processed.
The RBI has also directed banks and Business Correspondents to comply with applicable provisions of the Income-tax Act, 2025, and related rules governing cash deposits.
Furthermore, the remitter’s details must be included in the NEFT or IMPS transaction message. The transaction message must also identify the transfer as a cash-based remittance.
These requirements are intended to improve traceability and help financial institutions identify the people initiating cash transfers.
Banks Must Monitor Suspicious Transactions
The RBI has instructed banks and non-bank payment participants to establish safeguards for domestic money transfers.
These safeguards include transaction velocity checks and customer alerts when funds are credited through the facilities covered by the directions.
Banks must also investigate unusual increases in the volume of credits received by an individual account or a group of accounts.
If transactions appear suspicious, the relevant authorities must be alerted.
The central bank expects transfers under the framework to be completed in real time or near real time, making the service more convenient for customers who depend on cash-based remittances.
Banks and non-bank service providers may also charge reasonable fees for domestic money transfer services, with the RBI encouraging providers to make the facility accessible to customers.
New RBI Directions Consolidate Earlier Money Transfer Rules
The Domestic Money Transfer Directions, 2026, bring together instructions that were previously issued through separate regulatory circulars.
The framework was originally introduced to facilitate small-value domestic transfers, particularly for people who lack access to formal banking services because of difficulties with identity or address documentation.
The RBI’s July 2024 review of the domestic money transfer framework had already introduced stronger requirements, including mobile-number verification and additional authentication for cash-based remittances.
The latest directions consolidate the earlier instructions into a single regulatory framework.
They apply to scheduled commercial banks, including regional rural banks, urban cooperative banks, state cooperative banks and district central cooperative banks. Authorised payment system operators and participants are also covered where the provisions apply to their services.
The directions took effect immediately on November 11, 2026. Card-to-card transfers are excluded from their scope and continue to be governed by their respective guidelines and approvals.
The Bigger Picture
The RBI’s updated domestic money transfer framework reflects the importance of cash-based remittances in India’s financial system. Although digital payments have expanded rapidly, many individuals continue to depend on physical cash, particularly those working in informal sectors or living in areas with limited access to banking services. Allowing walk-in customers to send up to ₹50,000 through NEFT provides another route for these individuals to transfer money through formal financial institutions.
At the same time, the central bank is attempting to balance financial inclusion with stronger safeguards against fraud, money laundering and suspicious transactions. Mobile verification, additional authentication and transaction monitoring make cash-based transfers more traceable. The success of the framework will depend on how effectively banks and authorised agents implement the rules and whether the service remains affordable and accessible.
Looking Ahead
Banks and authorised Business Correspondents will now need to align their processes with the consolidated directions. Customers using cash pay-in services should expect identity verification and additional authentication before completing transfers. The different limits for bank branches, ATMs and Business Correspondents will also be important for customers choosing how to send money.
For people without bank accounts, the facility offers a practical way to send money to beneficiaries who use formal banking services. However, the ₹50,000 limit applies to branch-based cash transfers through NEFT, while other authorised channels carry lower limits. Clear communication from banks about charges, documentation and available channels will be important as the framework is implemented.
SEO Metadata
SEO Title: RBI Allows Cash Transfers Up to ₹50,000 for People Without Bank Accounts
Meta Description: RBI’s 2026 domestic money transfer rules allow walk-in customers without bank accounts to send up to ₹50,000 in cash through NEFT at bank branches.
URL Slug: rbi-cash-pay-in-service-50000-transfer-without-bank-account
Focus Keyphrase: RBI cash pay-in service
Secondary Keywords: RBI domestic money transfer rules 2026, ₹50,000 cash transfer, NEFT cash remittance, cash pay-out service, Business Correspondent, RBI KYC guidelines, money transfer without bank account
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
