The Reserve Bank of India has issued consolidated guidelines for domestic money transfers, retaining the Rs 50,000 limit for branch-based NEFT remittances while setting out transaction and monthly caps for cash payouts and transfers routed through business correspondents and ATMs.
Under the directions, a walk-in customer at a bank branch can send up to Rs 50,000 through NEFT to the bank account of a beneficiary. The central bank has not changed the existing remittance ceiling for this channel.
For cash pay-outs, the maximum transfer remains Rs 10,000 per transaction, with an overall monthly ceiling of Rs 25,000 per beneficiary. The arrangement is relevant to recipients who do not have bank accounts and may receive money through an ATM or an agent appointed as a business correspondent.
Banks may also facilitate transfers from the accounts of their customers to beneficiaries who receive the funds in cash. These services can be delivered through business correspondents or ATMs, subject to the limits specified by the RBI.
The guidelines also allow customers to transfer money to a beneficiary’s bank account through a business correspondent or an ATM. Such transfers are capped at Rs 5,000 per transaction and Rs 25,000 per month for each remitter.
The framework places several domestic money transfer routes within defined operating limits. For urban households, particularly those relying on branch networks, banking correspondents and cash-based access points, the rules establish how formal transfers can reach recipients who may not have a conventional bank account.
The RBI said fund transfers under the directions are expected to be completed on a real-time or near-real-time basis. This requirement links the updated framework not only to transaction limits but also to the speed at which recipients can access money through formal channels.
The consolidated guidelines cover small-value domestic remittances and retain separate limits for account-based NEFT transfers, cash pay-outs and transfers made through business correspondents or ATMs. Banks will be responsible for providing these services within the prescribed ceilings.
