RBI Introduces New Rules for Domestic Money Transfers Without Bank Accounts
The RBI has streamlined domestic money transfer rules, allowing cash transfers up to ₹50,000 without a bank account.
New Delhi, November 13 (Daily Kiran) : The Reserve Bank of India (RBI) has announced new regulations for domestic money transfers, simplifying the process significantly. Individuals can now visit any bank branch to send up to ₹50,000 in cash to another person’s bank account using the National Electronic Funds Transfer (NEFT) system, without needing to have an account at that bank.
These new guidelines include monthly limits and security measures to prevent fraud and misuse. A maximum of ₹10,000 can be received in a single transaction, while the monthly cap for each beneficiary is set at ₹25,000.
For cash transfers through business correspondents, ATMs, and other means, a limit of ₹5,000 per transaction has been established, with a similar monthly limit of ₹25,000 for senders.
Overall, these regulations consolidate previously issued directives and do not introduce significant changes to transaction limits. They are expected to benefit migrant workers, daily wage earners, and others who need to send money to family members living in different parts of the country but lack regular access to banking services.
Customers utilizing these services must register with a verified mobile number and submit self-certified valid documents in compliance with RBI’s Know Your Customer (KYC) norms. An additional authentication step will be required for each transaction.
This facility allows individuals to receive funds sent to their bank accounts and withdraw cash through ATMs, business correspondents, or other authorized payment methods. The sending bank is required to record and securely store the beneficiary’s name and address.
The central bank has instructed banks and non-banking institutions to establish monitoring systems to prevent fraud and misuse in cash-based money transfers. This includes tracking transaction frequency, sending alerts during fund deposits, and investigating unusual increases in deposits to specific accounts or groups of accounts.
