Skip to main content

Domestic Money Transfer

Reserve Bank of India (RBI) has reviewed the guidelines on domestic money transfer.

What was the rationale behind the relaxation in guidelines on domestic money transfer?

A large number of people, particularly the migrant population, did not have access to formal banking channels for want of proof of identity / address. Consequently, they faced difficulties in using the authorized channels for transferring funds. Therefore, the guidelines on domestic money transfer were relaxed to facilitate fund transfers of small values using formal banking channels.

What relaxations were given in the domestic money transfers?

 

 Nature of transaction Limit Other guidelines (revised)
Cash Pay-out Customers transfer funds from their bank accounts for delivery in cash to the recipients (not having bank accounts) at an ATM or through Business Correspondent (BC) ₹10,000 per transaction with a cap of ₹25,000 per beneficiary per month The remitting bank shall obtain and keep a record of the name and address of the beneficiary.
Cash Pay-in Walk-in customers (not having bank accounts) remit funds to the bank account of a beneficiary through NEFT ₹50,000 Remitting banks / BCs shall register the remitter based on a verified cell phone number and a self-certified ‘Officially Valid Document (OVD)’.
Every transaction by a remitter shall be validated by an Additional Factor of Authentication (AFA).
Remitting banks and their BCs shall conform to Income Tax provisions pertaining to cash deposits.
Remitter bank shall include remitter 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.
Walk-in customers (not having bank accounts) transfer funds to the bank account of a beneficiary through BCs, ATMs, etc. ₹5,000 per transaction with a cap of ₹25,000 per remitter per month
Card-to-Card transfer Excluded from the purview of the domestic money transfer framework and are governed under the guidelines / approvals granted for such instruments.


References

Reserve Bank of India. (2011, October 05). 'Domestic Money Transfer – Relaxations'. Retrieved from https://rbi.org.in/scripts/FS_Notification.aspx?Id=6750&&fn=9&&Mode=0

Reserve Bank of India. (2024, July 24). 'Domestic Money Transfer – Review of Framework'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12707&Mode=0


Follow at - Telegram   Instagram   LinkedIn   X   Facebook

Labels:

Comments

Post a Comment

Popular Posts

Digital Payments – E-mandate Framework 2026

Reserve Bank of India (RBI) has issued e-mandate framework for digital payments. What is an e-mandate?  A mandate is a standard instruction that a customer provides to his / her issuing bank and other institutions allowing them to automatically debit the mentioned amount from his / her bank account. e-mandate is the electronic version of it. To whom shall the framework be applicable? The framework shall be applicable to Payment System Providers and Payment System Participants. To which transactions shall the framework be applicable? The framework shall be applicable to processing of recurring transactions, domestic or cross-border, using cards / Prepaid Payment Instrument (PPI) / Unified Payments Interface (UPI). What are the guidelines for registration and revocation of e-mandate? A customer desirous of opting for e-mandate facility shall undertake a one-time registration process. The mandate shall be registered only after successful validation of additional factor of authenticati...
Post a Comment
Read more

Guidelines to facilitate faster cross-border inward payments

Reserve Bank of India (RBI) has issued guidelines to facilitate faster cross-border inward payments. What is the rationale behind the guidelines? The RBI’s Payments Vision 2025 aims to bring efficiency in the cross-border payments aligning with the G20 roadmap for cross-border payments that has set targets for achieving cheaper, faster, more transparent, and more accessible cross-border payments. One of the challenges with speed of cross-border payments is experienced at the beneficiary leg i.e., the time taken from receipt of the payment at the beneficiary bank till credit to the beneficiary account. What are the guidelines to facilitate faster cross-border inward payments? Banks shall inform their customer of the receipt of cross-border inward transactions immediately on receipt of inward message. Messages received after close of operating hours of banks shall be informed to customer immediately at the start of the next business day. Banks shall undertake reconciliation and confirmat...
Post a Comment
Read more

Guidelines on Money Changing Activities (Updated as on April 02, 2026)

Reserve Bank of India (RBI) has updated the guidelines on money changing activities. Who is Authorised Person? Authorised Person means an authorised dealer, money changer, off-shore banking unit or any other person authorised under section 10(1) of Foreign Exchange Management Act, 1999 (FEMA) to deal in foreign exchange or foreign securities. What are the categories of Authorised Persons? Authorised Dealer (AD) Category-I – entities which are authorised by RBI to carry out all permissible current and capital account transactions. Authorised Dealer (AD) Category-II – entities which are authorised by RBI to carry out specified non-trade related current account transactions, all the activities permitted to Full Fledged Money Changers (FFMC) and any other activity as decided by RBI, and include (i) Upgraded FFMCs; (ii) Select Regional Rural Banks (RRBs); (iii) Select Urban Cooperative Banks (UCBs); and (iv) Other entities. Authorised Dealer (AD) Category-III – entities which are authorised...
Post a Comment
Read more

FEMA - Borrowing and Lending [including External Commercial Borrowing (ECB) and Trade Credit (TC)]

Reserve Bank of India (RBI) has amended the regulations for borrowing and lending under the Foreign Exchange Management Act, 1999 (FEMA). What are the regulations for External Commercial Borrowing (ECB)? External Commercial Borrowing (ECB) means borrowing by an eligible borrower from a recognised lender. Eligible borrowers – Any person resident in India (other than an individual) that is incorporated, established or registered under a Central or State Act is an eligible borrower, provided such person is permitted for ECB in terms of applicable Acts. An eligible borrower that is under a restructuring scheme or corporate insolvency resolution process may raise ECB only if specifically permitted under the restructuring or resolution plan. An eligible borrower against whom any investigation, adjudication or appeal by a law enforcement agency for contravention of any rule, regulation or direction issued under FEMA is pending, may raise ECB notwithstanding the pending investigation or adjudi...
Post a Comment
Read more

Continuous Clearing and Settlement on Realisation in Cheque Truncation System (CTS) (Updated as on December 24, 2025)

Reserve Bank of India (RBI) has issued direction on continuous clearing and settlement on realisation in Cheque Truncation System (CTS). What is Cheque Truncation System (CTS)? Cheque Truncation System (CTS) involves halting the physical movement of the cheque and its replacement by images of the instrument and the corresponding data contained in the MICR line.  In CTS, 3 images are taken of each cheque – front Gray Scale, front Black & White and back Black & White. MICR (Magnetic Ink Character Recognition) is a 9-digit code printed at the bottom of cheques using magnetic ink – first 3 digits indicate City Code, middle 3 digits indicate Bank Code and the last 3 digits indicate Bank Branch Code. Only CTS-2010 standards compliant instruments can be presented for clearing through CTS. The presenting banks which truncates the cheques need to preserve the physical instruments for 10 years. From when will the continuous clearing and settlement on realisation in CTS be implemented...
Post a Comment
Read more