In early 1920 it was transferred west to the North Caucasus and participated in the offensive that defeated the Armed Forces of South Russia, before being disbanded.

A second formation was formed in December 1920 as the 20th Rifle Division of the Internal Service Troops and redesignated as the 49th in March 1921, but itself disbanded in April.

[3] On 12 January the division transferred to the 11th Army of the Caucasian Front, fighting in the North Caucasus operation against the remnants of the Armed Forces of South Russia until 7 April.

After the defeat of the Armed Forces of South Russia, the 49th was disbanded on 21 April, with its personnel used to reinforce the 20th Rifle Division.

[1][4][2] The 20th Rifle Division of the Internal Service Troops (VNUS) was formed in accordance with 1 and 15 December 1920 orders of the Transvolga Military District.