Customers Without Bank Accounts Can Send Up to ₹50,000 With Cash Pay-In Service Under RBI Guidelines

People without bank accounts can now send money to beneficiaries with bank accounts through cash-based remittance services, under the Reserve Bank of India’s (RBI) Domestic Money Transfer Directions, 2026. The new framework sets transaction limits, monthly caps and verification requirements for cash pay-in and cash pay-out services.

The guidelines aim to provide a regulated route for domestic money transfers by people who do not have access to traditional Banking facilities. They also clarify how banks, business correspondents and authorised payment channels must handle cash-based transactions.

Key Highlights

• People without bank accounts can deposit up to ₹50,000 per transaction through a bank branch using NEFT.
• Cash transfers through business correspondents, ATMs and other authorised channels are capped at ₹5,000 per transaction.
• The monthly limit for cash pay-in transfers through these authorised channels is ₹25,000 per sender.
• Cash pay-out transfers are limited to ₹10,000 per transaction and ₹25,000 per beneficiary per month.
• Senders must complete verification using a registered mobile number and an officially valid document, with additional transaction authentication.

What Are RBI’s New Domestic Money Transfer Directions?

The RBI’s Domestic Money Transfer Directions, 2026, establish rules for cash-based domestic remittances, including services used by customers who do not hold bank accounts.

The directions apply to scheduled commercial banks, including regional rural banks, urban cooperative banks, state cooperative banks and district central cooperative banks. They also cover authorised payment system operators and participants wherever the rules apply to domestic money transfer services.

The framework covers two types of transactions: cash pay-in, through which an unbanked sender deposits money for transfer to a bank account, and cash pay-out, through which a recipient without a bank account collects money sent from a bank account.

Cash Pay-In Service: How Can People Without Bank Accounts Send Money?

The cash pay-in service allows people without bank accounts to transfer money to beneficiaries who have bank accounts. Under the new directions, customers can visit a bank branch, deposit cash and use the National Electronic Funds Transfer (NEFT) system to send the money.

For cash pay-in transfers made through a bank branch using NEFT, the RBI has specified a maximum limit of ₹50,000 per transaction.

Banks can also facilitate cash-based transfers through business correspondents (BCs), ATMs and other authorised channels. However, transactions through these channels have lower limits:

• Per-transaction limit: ₹5,000.
• Monthly limit: ₹25,000 per sender.

These limits distinguish branch-based NEFT transfers from cash remittances conducted through other authorised channels.

Cash Pay-Out Service: How Can Recipients Collect Money?

The cash pay-out service is designed for people who do not have bank accounts but need to receive money from someone who has one.

Under this arrangement, banks can allow customers to transfer money from their accounts to recipients who do not maintain bank accounts. The recipient can collect the transferred amount in cash through ATMs, business correspondents or other authorised payment channels.

The RBI has set a maximum limit of ₹10,000 per transaction under the cash pay-out service. The monthly limit is ₹25,000 per beneficiary.

Banks must also maintain records of the beneficiary’s name and address to support transaction monitoring and regulatory compliance.

What Documents and Verification Are Required?

People using the cash pay-in service must complete registration with the bank or business correspondent. The RBI directions require senders to provide a verified mobile number and a self-certified officially valid document (OVD), in accordance with the applicable KYC requirements.

In addition to registration, every transaction must undergo an additional factor of authentication (AFA). This provides another layer of verification before the money transfer is processed.

The requirements are intended to help banks establish the identity of senders and improve the traceability of cash-based remittances.

What Responsibilities Do Banks and Business Correspondents Have?

Banks and their business correspondents must follow the applicable regulatory requirements when providing cash-based domestic money transfer services. They must also comply with relevant income-tax rules governing cash deposits.

Transaction messages sent through Immediate Payment Service (IMPS) or NEFT must include the sender’s details. Banks must also identify the transaction as a cash-based remittance so that its nature is clear in the payment system.

Maintaining accurate transaction information is important because cash-based transfers involve customers who may not have a conventional bank account through which their identity and transaction history can be readily established.

How the New RBI Rules Affect Unbanked Customers

The new framework provides people without bank accounts with formal channels to send and receive money. A person who needs to transfer cash to a bank account holder can use the cash pay-in facility, while someone receiving money without having a bank account can use the cash pay-out service.

The transaction limits vary depending on the channel used. Customers making a branch-based NEFT transfer can send up to ₹50,000 in one transaction, while cash transfers through business correspondents, ATMs and other authorised channels are subject to a ₹5,000 per-transaction limit and a ₹25,000 monthly cap per sender.

For recipients collecting cash, the separate pay-out limits apply. Customers should therefore check the applicable transaction method and limits before initiating a transfer.

New Directions Replace Earlier RBI Frameworks

The RBI’s 2026 directions replace the earlier domestic money transfer framework and related relaxations issued in 2024–25 and 2011. The updated rules bring the requirements for cash pay-in and cash pay-out services together under a revised regulatory framework.

By setting clearer limits and verification standards, the RBI aims to strengthen oversight of domestic cash remittances while retaining access to money transfer services for people outside the formal banking system.

Conclusion

The RBI’s Domestic Money Transfer Directions, 2026, set out how people without bank accounts can send and receive money through regulated cash-based services. The cash pay-in facility allows branch-based NEFT transfers of up to ₹50,000 per transaction, while transfers through business correspondents, ATMs and other authorised channels have a ₹5,000 transaction limit and a ₹25,000 monthly cap per sender. The cash pay-out service has a separate limit of ₹10,000 per transaction and ₹25,000 per beneficiary per month.

Customers using these services must complete the prescribed registration and authentication requirements. The revised framework gives banks and authorised payment providers clearer rules for handling domestic cash remittances and serving customers without bank accounts.