Sending Money Through ATMs Or Bank Branches? Know The New Cash Transfer Limits And KYC Rules
Sending money to another person's bank account or arranging a cash transfer for someone without banking access has become subject to a consolidated set of regulatory instructions. The new framework covers transactions through bank branches, ATMs and authorised banking agents, with separate limits depending on the transfer method.
Customers who regularly use cash-based remittance services should understand the revised directions, particularly the transaction ceilings and verification requirements.
The directions cover transactions in which customers deposit cash to send money to another person's bank account, as well as arrangements that allow recipients without bank accounts to collect transferred funds in cash.
The framework distinguishes between two types of services: cash pay-in and cash pay-out.
Under cash pay-in, an individual deposits physical currency through an authorised channel so that the amount can be credited to another person's bank account. Cash pay-out works in the opposite direction, allowing a recipient to collect money sent from a bank account without necessarily having an account of their own.
These facilities are particularly relevant for people who depend on cash transactions or live in areas where access to conventional banking services may be limited.
A Business Correspondent is an authorised banking representative who provides basic services outside conventional bank branches. These may include cash deposits, withdrawals and other permitted transactions.
Under the new directions, the cash pay-in facility carries the following restrictions:
For example, someone sending money to a family member through an authorised banking agent can make multiple transfers during the month, provided the individual transaction limit and overall monthly restriction are respected.
Customers should also remember that these limits apply to the specified cash-based transfer facility. They should not automatically be treated as the limits applicable to every form of digital or bank-account-based money transfer.
Under the cash pay-out facility, money transferred from a bank account can be collected by the beneficiary in cash through an ATM, a Business Correspondent or another permitted channel.
The central bank has prescribed a maximum withdrawal of ₹10,000 per transaction under this facility. The total amount that a beneficiary can receive through cash pay-out services is capped at ₹25,000 per month.
The two restrictions are separate. While a beneficiary may receive up to ₹10,000 in one transaction, the total amount collected during the month cannot exceed ₹25,000.
This arrangement allows people without conventional banking access to receive domestic remittances through authorised channels.
For instance, a person working in another city can transfer money from their bank account to a family member who can then collect the amount in cash, subject to the applicable limits and verification requirements.
Walk-in customers can transfer up to ₹50,000 per transaction through this facility.
This is higher than the ₹5,000 per-transaction ceiling applicable to cash deposits made through a Business Correspondent or ATM under the cash pay-in service.
Therefore, customers planning to send larger amounts in cash may consider the branch-based facility, subject to the bank's procedures and applicable requirements.
However, the ₹50,000 limit should not be confused with the limits applicable to ordinary account-based NEFT transfers, which operate under a different framework.
Individuals making these transfers must be registered using a verified mobile number and a self-certified Officially Valid Document (OVD), in accordance with the applicable Know Your Customer (KYC) requirements.
An OVD is an officially recognised identity document accepted under the relevant KYC framework. The verification process helps establish the identity of the person initiating the transaction.
Another important requirement is Additional Factor of Authentication (AFA). Every cash pay-in transaction must undergo this additional authentication process before it is completed.
Banks must also ensure that the relevant transaction details are included in the applicable Immediate Payment Service (IMPS) or NEFT transaction message. The information must clearly identify the transfer as one initiated through a cash-based facility.
This helps distinguish cash-originated remittances from ordinary transfers made directly from a customer's bank account.
The directions also require banks to follow the relevant provisions governing cash deposits under the Income-tax Act, 2025.
Under the new framework, banks and non-bank entities providing these services can determine reasonable charges for the transactions. The applicable fee may depend on the institution and the service being used.
Customers should therefore check the charges before initiating a transfer, particularly if they regularly send money through cash-based channels.
If a customer faces a problem with a transaction or has a complaint regarding the service, the grievance can be raised through the applicable complaint-handling mechanism.
The RBI-Integrated Ombudsman Scheme, 2026, also provides a route for eligible complaints against regulated entities, subject to its terms and conditions.
The earlier regulatory framework included instructions issued on 5 October 2011 and subsequently reviewed on 24 July 2024.
The 2026 directions bring these requirements together and update references to the applicable legal and regulatory provisions, including the KYC Directions, 2025, the Income-tax Act, 2025, and the Ombudsman Scheme, 2026.
The transaction limits for the specified cash pay-in and cash pay-out facilities remain unchanged under the consolidated framework.
For customers, this means the main development is the introduction of a single set of updated directions covering the relevant domestic money transfer services.
The framework applies to scheduled commercial banks, including Regional Rural Banks, as well as cooperative banks.
It also covers authorised payment system operators and participants involved in domestic money transfer services.
However, card-to-card transfers are excluded from these directions. Customers using such facilities should not assume that the provisions governing cash pay-in and cash pay-out services automatically apply to their transactions.
Anyone planning to send or receive money through cash-based channels should check the applicable limits, authentication requirements and service charges with the concerned bank or authorised agent.
Understanding these conditions can help customers avoid rejected transactions and make better use of available domestic remittance facilities.
Disclaimer: This article is for informational purposes only and should not be considered financial or legal advice. Transaction limits, authentication requirements and applicable charges are subject to regulatory provisions and may change. Customers should verify the latest requirements with their respective banks before making transactions.
Customers who regularly use cash-based remittance services should understand the revised directions, particularly the transaction ceilings and verification requirements.
What Are The New Domestic Money Transfer Rules?
The central bank has introduced the Domestic Money Transfer Directions, 2026, to bring the existing instructions governing domestic cash-based remittances under one framework.The directions cover transactions in which customers deposit cash to send money to another person's bank account, as well as arrangements that allow recipients without bank accounts to collect transferred funds in cash.
The framework distinguishes between two types of services: cash pay-in and cash pay-out.
Under cash pay-in, an individual deposits physical currency through an authorised channel so that the amount can be credited to another person's bank account. Cash pay-out works in the opposite direction, allowing a recipient to collect money sent from a bank account without necessarily having an account of their own.
These facilities are particularly relevant for people who depend on cash transactions or live in areas where access to conventional banking services may be limited.
How Much Money Can You Send Through An ATM Or Business Correspondent?
Customers who want to transfer cash into another person's bank account can use an authorised Business Correspondent (BC) or an ATM, subject to the prescribed limits.A Business Correspondent is an authorised banking representative who provides basic services outside conventional bank branches. These may include cash deposits, withdrawals and other permitted transactions.
Under the new directions, the cash pay-in facility carries the following restrictions:
- Maximum amount per transaction: ₹5,000.
- Maximum amount per sender in a month: ₹25,000.
For example, someone sending money to a family member through an authorised banking agent can make multiple transfers during the month, provided the individual transaction limit and overall monthly restriction are respected.
Customers should also remember that these limits apply to the specified cash-based transfer facility. They should not automatically be treated as the limits applicable to every form of digital or bank-account-based money transfer.
How Much Cash Can Someone Receive Without A Bank Account?
The revised framework also provides rules for individuals who receive money but do not maintain a bank account.Under the cash pay-out facility, money transferred from a bank account can be collected by the beneficiary in cash through an ATM, a Business Correspondent or another permitted channel.
The central bank has prescribed a maximum withdrawal of ₹10,000 per transaction under this facility. The total amount that a beneficiary can receive through cash pay-out services is capped at ₹25,000 per month.
The two restrictions are separate. While a beneficiary may receive up to ₹10,000 in one transaction, the total amount collected during the month cannot exceed ₹25,000.
This arrangement allows people without conventional banking access to receive domestic remittances through authorised channels.
For instance, a person working in another city can transfer money from their bank account to a family member who can then collect the amount in cash, subject to the applicable limits and verification requirements.
What Is The Cash Transfer Limit Through A Bank Branch?
The rules provide a different limit for customers who visit a bank branch and use the National Electronic Funds Transfer (NEFT) system for cash-based remittances.Walk-in customers can transfer up to ₹50,000 per transaction through this facility.
This is higher than the ₹5,000 per-transaction ceiling applicable to cash deposits made through a Business Correspondent or ATM under the cash pay-in service.
Therefore, customers planning to send larger amounts in cash may consider the branch-based facility, subject to the bank's procedures and applicable requirements.
However, the ₹50,000 limit should not be confused with the limits applicable to ordinary account-based NEFT transfers, which operate under a different framework.
What KYC Documents And Authentication Are Required?
The consolidated directions also specify how banks and authorised agents must verify customers using cash pay-in services.Individuals making these transfers must be registered using a verified mobile number and a self-certified Officially Valid Document (OVD), in accordance with the applicable Know Your Customer (KYC) requirements.
An OVD is an officially recognised identity document accepted under the relevant KYC framework. The verification process helps establish the identity of the person initiating the transaction.
Another important requirement is Additional Factor of Authentication (AFA). Every cash pay-in transaction must undergo this additional authentication process before it is completed.
Banks must also ensure that the relevant transaction details are included in the applicable Immediate Payment Service (IMPS) or NEFT transaction message. The information must clearly identify the transfer as one initiated through a cash-based facility.
This helps distinguish cash-originated remittances from ordinary transfers made directly from a customer's bank account.
The directions also require banks to follow the relevant provisions governing cash deposits under the Income-tax Act, 2025.
Can Banks Charge Customers For Domestic Money Transfers?
Customers may have to pay for using domestic money transfer facilities.Under the new framework, banks and non-bank entities providing these services can determine reasonable charges for the transactions. The applicable fee may depend on the institution and the service being used.
Customers should therefore check the charges before initiating a transfer, particularly if they regularly send money through cash-based channels.
If a customer faces a problem with a transaction or has a complaint regarding the service, the grievance can be raised through the applicable complaint-handling mechanism.
The RBI-Integrated Ombudsman Scheme, 2026, also provides a route for eligible complaints against regulated entities, subject to its terms and conditions.
Have The Transaction Limits Changed Under The New Framework?
The latest directions primarily consolidate the existing instructions rather than introduce a fresh set of transaction ceilings.The earlier regulatory framework included instructions issued on 5 October 2011 and subsequently reviewed on 24 July 2024.
The 2026 directions bring these requirements together and update references to the applicable legal and regulatory provisions, including the KYC Directions, 2025, the Income-tax Act, 2025, and the Ombudsman Scheme, 2026.
The transaction limits for the specified cash pay-in and cash pay-out facilities remain unchanged under the consolidated framework.
For customers, this means the main development is the introduction of a single set of updated directions covering the relevant domestic money transfer services.
When Do The New Money Transfer Rules Come Into Effect?
The Domestic Money Transfer Directions, 2026, were issued on 11 November 2026 and came into force immediately on the date of issuance.The framework applies to scheduled commercial banks, including Regional Rural Banks, as well as cooperative banks.
It also covers authorised payment system operators and participants involved in domestic money transfer services.
However, card-to-card transfers are excluded from these directions. Customers using such facilities should not assume that the provisions governing cash pay-in and cash pay-out services automatically apply to their transactions.
Anyone planning to send or receive money through cash-based channels should check the applicable limits, authentication requirements and service charges with the concerned bank or authorised agent.
Understanding these conditions can help customers avoid rejected transactions and make better use of available domestic remittance facilities.
Disclaimer: This article is for informational purposes only and should not be considered financial or legal advice. Transaction limits, authentication requirements and applicable charges are subject to regulatory provisions and may change. Customers should verify the latest requirements with their respective banks before making transactions.
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