No bank account? You can still send up to Rs 50,000 through a bank branch

You don't have a bank account but need to send money to someone who does? You can still walk into a bank branch, deposit cash and transfer up to Rs 50,000 directly into the beneficiary's account.

This facility is not new. The Reserve Bank of India (RBI) introduced the Domestic Money Transfer (DMT) framework to make small-value fund transfers easier through formal banking channels, particularly for people such as migrant workers who may not have easy access to banking services.

The central bank has now consolidated and harmonised its existing instructions through the Reserve Bank of India (Domestic Money Transfer) Directions, 2026, which came into effect on November 11.

The directions spell out the limits applicable to different types of domestic money transfers, including cash deposits at bank branches, transfers through ATMs and Business Correspondents, and cash payouts to recipients who do not have bank accounts.

Here is what the clarified rules mean for customers.HOW MUCH CAN YOU SEND WITHOUT A BANK ACCOUNT?

Under the directions, a walk-in customer at a bank branch can deposit cash and remit up to Rs 50,000 directly into a beneficiary's bank account through the National Electronic Funds Transfer (NEFT) system.

This means you do not necessarily need to hold a bank account to use this facility. You can visit a bank branch and use its cash pay-in service to transfer money to someone who has a bank account.

The facility can be particularly useful for people who need to send money to family members in other cities or states but do not have access to conventional banking services themselves.WHAT IF YOU USE AN ATM OR BUSINESS CORRESPONDENT?

The limits are lower if you use an ATM or a Business Correspondent (BC) to transfer money.

Under the RBI's directions, you can transfer up to Rs 5,000 per transaction. The total amount transferred cannot exceed Rs 25,000 per remitter in a month.

Business Correspondents are agents authorised by banks to provide basic banking services, including cash deposits and withdrawals, particularly in areas where customers may not have easy access to a bank branch.

So, if you regularly send money through a BC or an ATM, remember that the Rs 5,000 limit applies to each transaction, while Rs 25,000 is the overall monthly cap for the remitter.CAN SOMEONE WITHOUT A BANK ACCOUNT RECEIVE MONEY?

Yes. The RBI has also clarified the rules for what it calls the Cash Pay-out Service.

Under this facility, a person with a bank account can transfer money from their account for delivery in cash to a recipient who does not have a bank account.

The recipient can collect the money through an ATM, a Business Correspondent or another authorised payment channel.

However, the RBI has set limits. A maximum of Rs 10,000 can be transferred for cash payment in a single transaction. The total amount cannot exceed Rs 25,000 per beneficiary in a month.

For example, if you are sending money to a family member who does not have a bank account, the recipient can collect up to Rs 10,000 in cash in a single transaction, subject to the overall monthly ceiling of Rs 25,000.WHY HAS THE RBI ISSUED FRESH DIRECTIONS?

The Domestic Money Transfer framework was originally introduced to facilitate small-value transfers through formal banking channels.

It is particularly relevant for people, including migrant workers, who may need to send money home but face difficulties accessing conventional banking services because of a lack of identity or address documentation.

The latest directions are aimed at bringing the existing instructions together and harmonising the rules governing different types of domestic money transfers. They also clarify the limits and safeguards that banks and non-bank entities must follow.

In other words, the RBI has not announced a new money-transfer facility. It has consolidated the existing framework and set out the applicable rules in a single set of directions.advertisementWHAT SAFEGUARDS MUST BANKS FOLLOW?The RBI has also stressed the need for stronger monitoring to prevent misuse of these facilities.

Banks and non-bank entities must put in place safeguards such as transaction velocity checks and alerts to customers when money is credited into accounts through these facilities.

If there is an unusual increase in the volume of credits into a particular account or a group of accounts, the institution must investigate it immediately.

Suspicious transactions must also be reported to the appropriate authorities.

The RBI has said that transfers under the facility are expected to take place in real time or near real time, allowing beneficiaries to receive money without long delays.

One important exclusion is that card-to-card transfers do not fall under the scope of the new directions.- Ends