The Reserve Bank has officially issued the Domestic Money Transfer Directions, 2026, to harmonize existing regulations and support small-value transfers for people lacking standard identity proofs such as migrant workers, establishing that walk-in customers can deposit cash at bank branches to transfer up to Rs 50,000 to a beneficiary’s account via NEFT under norms operational from Wednesday, while banks are also granted permission to allow fund transfers up to Rs 5,000 per transaction with a Rs 25,000 monthly cap per remitter through Business Correspondents and ATMs, alongside providing cash pay-out services for delivering cash from customer accounts to recipients lacking bank accounts via ATMs, agents, or other authorized channels with a transaction ceiling of Rs 10,000 and a monthly limit of Rs 25,000 per beneficiary, while card-to-card transfers remain excluded and institutions are mandated to maintain strict surveillance systems involving velocity checks, customer notification alerts, immediate investigation of unusual credit surges, and real-time or near real-time execution of transfers.
