For Prelims: National Electronic Funds Transfer, Business Correspondent, Financial Inclusion
For Mains: Economy: Banking and payment systems; Economy: Financial inclusion
Source:
Dainik Bhaskar
Hindustan
New update
New facts from Hindustan, 12 November 2026
- Full form of DMT: Domestic Money Transfer
- Directions: Domestic Money Transfer Directions, 2026
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- Branch NEFT permits a sender without an account to transfer up to ₹50,000 per transaction.
- Direct cash transfers are limited to ₹10,000 per transaction.
- Direct cash transfers have a ₹25,000 monthly limit per person.
- Agent or ATM transfers into another account are limited to ₹5,000 per transaction.
- Business correspondents are representatives appointed by banks.
The news
The Reserve Bank of India has eased rules for domestic money transfers, allowing a person without a bank account to send up to ₹50,000 per transaction through National Electronic Funds Transfer at a bank branch. The new guidelines, issued on November 11, 2026, also permit direct cash transfers of up to ₹10,000 per transaction to a recipient who does not have a bank account, with a monthly cap of ₹25,000 per person.
Under the revised framework, account holders can send money for cash withdrawal by a recipient without a bank account through an ATM or a bank’s business correspondent. Transfers into another person’s account through an agent or ATM are limited to ₹5,000 per transaction and ₹25,000 per person per month. The RBI has stated that all transfers under these routes will be processed in real time, with funds credited or made ready for cash collection immediately. The facility is expected to benefit people in remote areas where bank branches are not easily accessible.
Why in the news?
The Reserve Bank of India issued new money transfer guidelines on November 11, 2026, easing rules for domestic transfers, including allowing non-account holders to send up to ₹50,000 via NEFT at a branch and enabling cash transfers to recipients without bank accounts.
What are the different transfer routes and their limits?
The RBI guidelines set different ceilings depending on the transfer route. A sender without a bank account can use a bank branch to send up to ₹50,000 per transaction through NEFT. For direct cash transfers to a recipient without an account, the limit is ₹10,000 per transaction and ₹25,000 per person per month. Transfers into another person’s account through a bank agent or ATM are capped at ₹5,000 per transaction and ₹25,000 per person per month. Each of the latter two routes has a separate monthly per-person limit.
How will the facility work for recipients without accounts?
A recipient who does not have a bank account can collect the cash transfer through any ATM or from a bank’s business correspondent. Business correspondents are representatives appointed by banks to provide basic services such as account opening, cash deposits and transfers in rural and remote areas where bank branches are absent. The RBI has directed banks to make these channels available so that account holders can send money directly to people without accounts.
Money transfer limits by route
| Route | Per transaction | Per person monthly |
|---|---|---|
| Direct cash transfer | ₹10,000 | ₹25,000 |
| Agent or ATM to account | ₹5,000 | ₹25,000 |
Facts and terms for exams
- National Electronic Funds Transfer:
- National Electronic Funds Transfer is an electronic system for transferring funds between bank accounts.
- Business Correspondent:
- A business correspondent is a bank-appointed representative who provides basic banking services on the bank’s behalf.
- Financial Inclusion:
- Financial inclusion means access to useful and affordable financial services for individuals and businesses.
Why it matters for exams
Exams: Bank
Syllabus: Economy: Banking and payment systems; Economy: Financial inclusion
Common mistake: Examiners may swap the ₹10,000 direct cash transfer ceiling with the ₹5,000 agent or ATM account-transfer ceiling; the two limits apply to different routes.
Mains question
Examine the role of the Reserve Bank of India’s new money transfer guidelines in promoting financial inclusion. Discuss the limits and challenges in their implementation.
Stuck? Get it in one tap
The Reserve Bank of India’s guidelines describe ways to send money even when the sender or recipient has no bank account. A sender without an account can use NEFT at a bank branch, while a recipient without an account can collect eligible transfers as cash. Different transfer routes have different limits.
- Branch NEFT permits a sender without an account to transfer up to ₹50,000 per transaction.
- Direct cash transfers are limited to ₹10,000 per transaction.
- Direct cash transfers have a ₹25,000 monthly limit per person.
- Agent or ATM transfers into another account are limited to ₹5,000 per transaction.
- Business correspondents are representatives appointed by banks.
- Economy: Banking and payment systems
- Economy: Financial inclusion
Related concepts: National Electronic Funds Transfer, Business Correspondent, Financial Inclusion
Practice questions
Pick an answer, then read the explanation.
- Q1Easy
Who appoints business correspondents to provide basic banking services?
Explanation: Banks appoint business correspondents as their representatives for basic banking services. Account holders, recipients and transfer users are customers rather than the appointing institutions.
- Q2Hard
Consider the following statements about the Reserve Bank of India’s money transfer guidelines:
- 1.A person without a bank account can use branch NEFT to send up to ₹50,000 per transaction.
- 2.A direct cash transfer is limited to ₹5,000 per transaction.
- 3.A transfer into another person’s account through an ATM or bank agent is limited to ₹25,000 per person per month.
Which of the statements given above is/are correct?
Explanation: Statements 1 and 3 correctly state the branch NEFT transaction ceiling and the monthly agent or ATM account-transfer ceiling. Statement 2 is incorrect: the direct cash transfer ceiling is ₹10,000 per transaction; ₹5,000 applies to the agent or ATM account-transfer route.
- Q3Medium
What is the per-transaction ceiling for a direct cash transfer under the RBI guidelines?
Explanation: The direct cash transfer ceiling is ₹10,000 per transaction. ₹5,000 is the agent or ATM account-transfer ceiling, ₹25,000 is the monthly limit, and ₹50,000 is the branch NEFT ceiling for a sender without an account.
- Q4Medium
How can the RBI’s cash transfer facility help a recipient without a bank account?
Explanation: A recipient without an account can collect the transferred cash through an ATM or business correspondent. The facility retains transfer ceilings and does not require collection only at a branch.
Frequently asked questions
1. Can a person without a bank account send money through NEFT?
A person without a bank account can use a bank branch to send up to ₹50,000 per transaction through NEFT.
2. What is the direct cash transfer limit under the RBI guidelines?
The limit is ₹10,000 per transaction and ₹25,000 per person per month.
3. How can a recipient without a bank account collect a cash transfer?
The recipient can collect cash through an ATM or a bank’s business correspondent.
4. What is the limit for an agent or ATM transfer into another person’s account?
The limit is ₹5,000 per transaction and ₹25,000 per person per month.
All sources
- Original11 November 2026 · Read story
- Update12 November 2026 · Read story
