The RBI has changed the rules for money transfers; customers can now send up to ₹50,000 from a bank branch without needing an account..
New RBI Rules for Domestic Money Transfer (DMT): The Reserve Bank of India (RBI) has issued new guidelines regarding Domestic Money Transfer (DMT) in the country. These rules, released on Wednesday, November 11, do not alter the existing limits for money transfers. Under the new guidelines, a walk-in customer visiting a bank branch can transfer up to ₹50,000 to another person's bank account via NEFT.
The RBI has introduced these rules to consolidate and simplify previous directives concerning domestic money transfers. The objective is to provide a facility for transferring funds through formal banking channels even to those who may lack the necessary identity or address documentation—a provision designed with individuals such as migrant workers in mind.
Transfer up to ₹50,000 via NEFT from bank branches
According to the new RBI directives, any customer visiting a bank branch can use the 'cash pay-in' service to transfer a maximum of ₹50,000 to a beneficiary's bank account via NEFT. This facility is intended for individuals who are not bank account holders but wish to transfer money through a bank branch.
Limits for transfers via Business Correspondents (BC) and ATMs
Banks may now also facilitate money transfers through Business Correspondents (BCs) and ATMs. Through these channels, a maximum of ₹5,000 can be transferred in a single transaction. Furthermore, a monthly limit of ₹25,000 has been set for each remitter.
Funds can be received by individuals without a bank account
The RBI has permitted banks to facilitate the transfer of funds to individuals who do not hold a bank account. Under this arrangement, bank customers can transfer funds from their accounts, and the beneficiary can receive the amount in cash via an ATM, a business correspondent, or any other authorized payment channel. This cash payout service allows for a maximum of ₹10,000 per transaction, with a monthly cumulative limit of ₹25,000 per beneficiary.
Banks to monitor transactions
The RBI has directed banks and non-banking institutions to implement robust security measures for these transfers. This includes setting up 'velocity checks' to monitor the frequency and pace of transactions, as well as alert systems to notify customers whenever funds are credited to their accounts. If a large volume of funds is suddenly credited to a single account—or a group of accounts—the bank must conduct an immediate investigation. Any suspicious transaction must also be reported to the relevant authorities.
According to the RBI, fund transfers facilitated through these services should be completed in real-time or near real-time. Card-to-card transfers, however, have been excluded from the scope of these new guidelines.
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