The Reserve Bank of India (RBI) has eased the process for domestic money transfers of small-value funds but left the remittance ceiling unchanged.

Walk-in customers at a bank branch can remit funds up to Rs 50,000 to the bank account of a beneficiary via NEFT and enhanced financial inclusion for those without traditional banking access.

The maximum amount that can be transferred under the cash pay-out service, however, remains at Rs 10,000 per transaction. The monthly ceiling for this is Rs 25,000 per beneficiary.

The RBI has also allowed banks to provide services that facilitate the transfer funds from the accounts of their customers for delivery in cash to recipients who do not have bank accounts at an ATM or through an agent appointed as a business correspondent (BC), or through any other authorised payment channels.

Banks have been told to allow such customers to transfer funds to a beneficiary’s bank account through BCs or ATMs, up to a maximum amount of Rs 5,000 per transaction with a monthly cap of Rs 25,000 per remitter.

The RBI has introduced the framework for Domestic Money Transfer (DMT) Directions, 2026, in order to facilitate small-value fund transfers through formal banking channels, particularly for persons, including migrant workers, who lack access to such channels due to lack of proof of identity or address.

Card-to-card transfers are excluded from the purview of the Directions.

RBI further said banks and non-banks should put in place robust systems of safeguards, including velocity checks and alerts to customers regarding credits into accounts using the facilities provided under the Directions.

"Any unusual spurt in the volume of credits in a particular account or group of accounts shall be investigated immediately," it said, and added appropriate authorities should be alerted regarding suspicious transactions.

Fund transfers under the facility are expected to be effected on a real-time or near real-time basis, the RBI said.