TestCloud
Prep • Practice • Perform
Log In

RBI Issues New Framework for Domestic Money Transfer (DMT).

Banking & Finance | Dated: 31 Dec 2025

The Reserve Bank of India (RBI) has issued updated guidelines for Domestic Money Transfer (DMT) services to tighten Know Your Customer (KYC) norms. The new framework mandates that every transaction by a cash payout agent must be validated through an Additional Factor of Authentication (AFA).

🎯 Key Highlights:

  • The sender's details must be verified using biometric or OTP-based authentication for every transfer.
  • This move aims to curb the misuse of banking channels for money laundering and fraud.
  • The new norms will come into effect from April 1, 2026.

💡 Other Important Facts:

  • Guideline: Domestic Money Transfer (DMT).
  • Requirement: Additional Factor of Authentication.
  • Date: April 1, 2026.

📚 Test Your Knowledge:

The RBI recently tightened KYC norms for which type of service requiring Additional Factor of Authentication?

Correct Answer: Domestic Money Transfer

🚀 Quick Recap:

About RBI

  • Governor – Shaktikanta Das
  • HQ – Mumbai