RBI Sets Framework for Domestic Money Transfers; Walk-in Limit at ₹50,000

The Reserve Bank of India has unveiled a regulatory framework for Domestic Money Transfer (DMT) services, establishing clear operational guidelines for authorized institutions facilitating remittance services across the country. Under the new norms, walk-in customers—those without pre-established banking relationships with the transfer service provider—are permitted to send up to ₹50,000 per transaction through registered channels.

The framework represents a significant step toward formalizing India's remittance ecosystem, a critical component of the financial system given the substantial volume of funds transferred daily across regions and states. By establishing standardized norms, the RBI aims to enhance transparency, reduce the use of informal money transfer methods, and provide regulatory oversight of domestic remittance flows.

The regulations specify operational requirements for entities offering DMT services, including compliance standards, customer verification procedures, and transaction monitoring mechanisms. These measures are designed to prevent misuse of the transfer system while maintaining accessibility for legitimate remittances across India's banking network.

The introduction of these norms reflects the RBI's broader commitment to financial inclusion and formalization of the economy. By setting deposit limits for walk-in customers at ₹50,000, the framework balances accessibility for common remittance needs with appropriate risk management and regulatory oversight.