No bank account? Check how much cash you can send or receive through ATM, NEFT under RBI domestic money transfer rules

The Reserve Bank of India (RBI) has issued new consolidated rules for domestic money transfers, setting limits on how much cash you can send to someone else's bank account or transfer to a person who does not have a bank account.

For instance, if you deposit cash through a Business Correspondent (BC) or at an ATM to send money to someone else's bank account, you can transfer up to ₹5,000 per transaction, subject to a monthly limit of ₹25,000. However, if you visit a bank branch and use NEFT, you can remit up to ₹50,000.

The Reserve Bank of India (RBI) issued the Domestic Money Transfer Directions, 2026, on Wednesday, consolidating existing rules for small-value money transfers through banks and authorized agents.

Here's what you need to know.

If you transfer money from your bank account to someone who does not have a bank account, the recipient can collect the funds in cash through an ATM, a BC, or another authorized channel.

A Business Correspondent is an authorized banking agent who provides basic banking services, including cash deposits and withdrawals, outside a bank branch.

The RBI states, “The maximum amount that may be transferred under the Cash Pay-out Service shall be ₹10,000 per transaction, subject to an overall monthly ceiling of ₹25,000 per beneficiary.”

Under the cash pay-in service, even if you do not have a bank account, you can deposit cash to transfer money directly into another person's bank account. The RBI has prescribed the following limits:

• Through a Business Correspondent, ATM, or others: Up to ₹5,000 per transaction, with a monthly limit of ₹25,000 per sender.
• At a bank branch through NEFT: Up to ₹50,000 per transaction for walk-in customers.

When you send money through cash pay-in service, banks and BCs will register you using a verified mobile number and a self-certified Officially Valid Document (OVD) under the KYC Directions, 2025.

Every transaction will require validation through an Additional Factor of Authentication (AFA). Your details will be included in the IMPS/NEFT transaction message and identified as a cash-based transfer. Banks must also comply with applicable income-tax rules on cash deposits under the Income-tax Act, 2025.

Yes. Banks and non-banks can decide reasonable charges for domestic money transfer services. Customers can also raise grievances under the RBI-Integrated Ombudsman Scheme, 2026.

The RBI's 11 November directions consolidate the instructions issued under its earlier circulars, Domestic Money Transfer – Relaxations (5 October 2011) and Domestic Money Transfer – Review of Framework (24 July 2024).

While references to the Income-tax Act, 2025, the KYC Directions, 2025, and the Ombudsman Scheme, 2026, have been updated, the existing transaction limits remain unchanged.

The RBI's Domestic Money Transfer Directions, 2026, came into effect immediately on 11 November, the date of their issuance.

The directions apply to scheduled commercial banks, including Regional Rural Banks (RRBs) and cooperative banks, as well as authorized payment system operators and participants involved in domestic money transfers. Card-to-card transfers are excluded from these guidelines.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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