On November 11, 2026, the Reserve Bank of India issued the Reserve Bank of India (Domestic Money Transfer) Directions, 2026, numbered RBI/DPSS/2026-27/476 and CO.DPSS.POLC.No.S843/02-27-019/2026-2027, under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). Scheduled commercial banks in India offering domestic money transfer, including regional rural banks, urban co-operative banks, state co-operative banks and district central co-operative banks offering domestic money transfer, authorised payment system operators and non-bank system participants offering domestic money transfer in India, and business correspondents appointed by those banks for cash pay-in and cash pay-out, must apply those Directions by November 11, 2026, or running domestic money transfer outside them, including above the stated caps or without the required registration, authentication and monitoring, is a breach of binding directions issued under sections 18 and 10(2) of the Payment and Settlement Systems Act, 2007.
The Directions repeal circular DPSS.PD.CO.No. 622/02.27.019/2011-2012 of October 5, 2011 and circular CO.DPSS.POLC.No.S415/02.27.019/2024-25 of July 24, 2024, and they are effective immediately on the November 11, 2026 issue date. Cash pay-out is capped at ₹10,000 per transaction and ₹25,000 a month per beneficiary. Walk-in NEFT at a branch is capped at ₹50,000. Cash pay-in through a business correspondent or an ATM is capped at ₹5,000 per transaction and ₹25,000 a month per remitter. Registration uses a verified mobile number and a self-certified officially valid document, every transaction needs an additional factor of authentication, and the IMPS or NEFT message carries remitter details plus a cash-based remittance identifier.
What caps does RBI/DPSS/2026-27/476 set?
Domestic Money Transfer (DMT) is the Reserve Bank of India framework for facilitating small-value fund transfers through formal banking channels, particularly for persons, including migrant workers, who lack access to such channels for want of proof of identity or address.
Paragraphs 7 to 9 of the Reserve Bank of India (Domestic Money Transfer) Directions, 2026 set three ceilings. Cash pay-out delivers funds in cash to a recipient without a bank account, and the remitting bank records the beneficiary's name and address. Walk-in NEFT at a branch has no monthly ceiling in paragraph 8. Cash pay-in through a correspondent or an ATM is counted per remitter.
| Channel | Per transaction | Monthly ceiling |
|---|---|---|
| Cash pay-out (ATM, business correspondent, or other authorised channel) | ₹10,000 | ₹25,000 per beneficiary |
| Walk-in NEFT at a bank branch | ₹50,000 | Not stated in paragraph 8 |
| Cash pay-in through a business correspondent, ATM or similar channel | ₹5,000 | ₹25,000 per remitter |
Who must apply the Directions, and who is outside them?
Paragraph 3 applies the Directions to scheduled commercial banks, including regional rural banks, urban co-operative banks, state co-operative banks and district central co-operative banks, and to authorised payment system operators and system participants, banks and non-banks, to the extent each offers domestic money transfer. Business correspondents register remitters for the appointing bank and follow the cash-deposit rules of the Income-Tax Act, 2025. Paragraph 4 leaves card-to-card transfers under the rules of the payment instrument.
Obsidian tracks 7 regulatory texts (in force, amended or in preparation) for the Financial Services & Crypto-Assets industry in India, as of November 2026.
What must change in registration, messages and monitoring?
Paragraphs 10 to 17 require registration on a verified mobile number and a self-certified officially valid document under the Know Your Customer Directions, 2025, an additional factor of authentication on every remitter transaction, and an IMPS or NEFT message that carries remitter details and a cash-based remittance identifier. Banks and non-banks run velocity checks, alert customers to credits through these facilities, investigate immediately any unusual spurt in credits to an account or a group of accounts, and alert the appropriate authorities to suspicious transactions. Settlement uses only payment systems the Reserve Bank has approved. Transfers are expected in real time or near real time. Charges may be set at a reasonable level, and grievances fall under the Reserve Bank Integrated Ombudsman Scheme, 2026. The notification page is RBI notification Id 13752.
What is the consequence of staying on the repealed circulars?
Chapter III repeals both earlier circulars with the issue of these Directions, so a limit, a registration step or a message format taken only from DPSS.PD.CO.No. 622/02.27.019/2011-2012 or from CO.DPSS.POLC.No.S415/02.27.019/2024-25 is no longer the instruction in force. Operating above the caps in paragraphs 7 to 9, or without the registration, authentication, message identifier and monitoring in paragraphs 10 to 17, is a breach of directions issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007. The Directions do not state a rupee penalty figure. Continuous, per-jurisdiction real-time monitoring surfaces a directions text of this kind the moment the Reserve Bank publishes it.
Map each cash pay-out, walk-in NEFT and correspondent pay-in product to the table, confirm it is not a card-to-card flow, and brief operations that the October 5, 2011 and July 24, 2024 circulars are repealed.
