FILE PHOTO: The Reserve Bank of India has revised its Domestic Money Transfer Directions, 2026, allowing banks to offer cash pay-in and pay-out services through authorised channels.
| Photo Credit:
FRANCIS MASCARENHAS
The RBI said banks can provide cash pay-out service, entailing payment of amounts transferred from a bank account to recipients who do not have bank accounts, at an ATM or through an agent appointed as a Business Correspondent, or through any other authorised payment channels, under its revised Domestic Money Transfer (DMT) Directions.
Further, they can also provide cash pay-in service (payment of amounts to be credited to bank accounts).
The aforementioned clause forms part of the RBI’s Domestic Money Transfer (DMT) Directions, 2026, issued by consolidating extant instructions relating to DMT. Banks and non-banks, as applicable, can fix reasonable charges for DMT services to popularise the facility.
Cash pay-out capped at ₹10,000 per transaction
When providing the cash pay-out service, the remitting bank must obtain and keep a record of the beneficiary’s name and address.
Further, the maximum amount that can be transferred under the Cash Pay-out Service will be ₹10,000 per transaction, subject to an overall monthly ceiling of ₹25,000 per beneficiary.
Cash pay-in through NEFT, BCs and ATMs
For cash pay-in service (payment of amounts to be credited to bank accounts), the central bank said a walk-in customer at a bank branch can remit up to ₹50,000 to a beneficiary’s bank account through NEFT (National Electronic Funds Transfer).
Banks are also permitted to allow such customers to transfer funds to a beneficiary’s bank account through Business Correspondents (BCs), ATMs, etc., up to ₹5,000 per transaction with a monthly cap of ₹25,000 per remitter.
Remitting banks/BCs have to register the remitter based on a verified cell phone number and a self-certified Officially Valid Document (OVD). Every transaction undertaken by a remitter shall be validated by an Additional Factor of Authentication (AFA).
Remitting banks and their BCs have to comply with the applicable provisions of the Income-Tax Act, 2025, and the rules/regulations framed thereunder, as amended from time to time, pertaining to cash deposits.
The remitting bank must include the remitter’s details as part of the IMPS/NEFT transaction message. The transaction message shall include an identifier to identify the fund transfer as a cash-based remittance.
RBI mandates safeguards to flag suspicious transactions
RBI said banks and non-banks, as applicable, have put in place robust systems of safeguards, including velocity checks and alerts to customers regarding credits into accounts using the facilities provided under these Directions.
Any unusual spurt in the volume of credits in a particular account or group of accounts shall be investigated immediately, and appropriate authorities shall be alerted regarding suspicious transactions.
Published on November 11, 2026
