The Reserve Bank of India (RBI) has introduced revised rules for domestic money transfers, making it easier for people to send and receive money without maintaining a bank account with the concerned bank. The new guidelines will come into effect on November 11, 2026.

Under the revised framework, individuals will be able to transfer up to ₹50,000 to another bank account through a bank branch using the cash pay-in facility and NEFT, even if they are not existing customers of that bank.

The RBI has also introduced provisions for cash transfers and withdrawals through business correspondents (BCs), ATMs and other authorised payment channels, subject to specific transaction limits.

The objective is to simplify domestic money transfers and improve access to banking services, particularly for people who do not have access to formal banking facilities or sufficient identity and address documents.

You Can Transfer ₹50,000 Through a Bank Branch

Under the revised RBI guidelines, an individual can visit a bank branch and deposit cash for transferring money to another person's bank account.

The maximum permitted amount through this facility will be ₹50,000 per transaction. The transfer can be made through the National Electronic Funds Transfer (NEFT) system.

Importantly, the sender does not need to be an existing customer of the bank to use this facility. This makes it easier for people who need to transfer money occasionally without opening a bank account with that particular institution.

People Without Bank Accounts Can Also Receive Cash

One of the important aspects of the revised rules is the cash pay-out facility, which allows individuals without bank accounts to receive money.

Under this arrangement, banks can facilitate cash payments to recipients using funds transferred from their customers' accounts. The service can be accessed through ATMs, business correspondents and other authorised payment channels.

The RBI has prescribed the following limits for cash withdrawals under this facility:

• Maximum cash payment: ₹10,000 per transaction.

• Monthly limit: ₹25,000 per individual.

This facility could be particularly useful for people who need to receive money but do not have a bank account.

Who Will Benefit From the New RBI Rules?

The revised domestic money transfer framework is expected to benefit migrant workers, daily-wage earners and individuals who frequently send or receive money across different cities.

For example, a person working in another state can use the available cash transfer facilities to send money to family members. Similarly, recipients without bank accounts can access cash through authorised banking channels, subject to the prescribed limits.

By simplifying the process and expanding access through different banking channels, the RBI aims to make domestic money transfers more accessible and convenient.

The new framework represents an important step towards improving financial inclusion and ensuring that people without regular banking access can also participate in the formal financial system.