RBI Updates Domestic Money Transfer Rules Allowing Cash Transfers Up to Rs 50,000 at Bank Branches

Cash Transfer Rules

People without a bank account can now walk into any bank branch and send up to Rs 50,000 directly to someone else's account using NEFT, following revised Domestic Money Transfer guidelines issued by the Reserve Bank of India. According to Asianet News Telugu, the central bank introduced this option to bring financial services closer to more people and help send money easily to remote areas lacking banking facilities.

Limits and Security

For cash pay transfers, the central bank has set a limit of Rs 10,000 for each single transaction, while the monthly limit for each beneficiary is fixed at Rs 25,000. Asianet News Telugu reports that banks and business correspondents providing these services must follow RBI's Know Your Customer rules for 2025. Customers using cash deposit services must submit a verified mobile number and a self-attested officially valid document, while every transaction requires verification through an additional factor of authentication. Card-to-card transactions are excluded from these guidelines.

Context

These updated rules help migrant workers and individuals without formal bank accounts transfer funds safely through official channels. By setting strict transaction limits and mandatory document checks, the central bank aims to curb unauthorized money transfers and monitor suspicious activities effectively.