I am currently in US and I generally transfer money to my NRE account in India. I was wondering if I could transfer some of it to my mother's local bank account. Will she have to pay any tax if I transfer from my NRE account to her bank account?
From your mother point of view, the money she receives from you cannot be defined as "Income" and hence there is not income tax. However this would be treated as "Gift" and as per Gift Tax rules, there is no limit on transfers of money between "Relative". Your Mother falls under this definition and hence you can give unlimited money to your parents without any tax implication.
It is advisable to keep proper records if the amounts run upto lacs of rupees.