Money & Banking

RBI removes cap on mobile banking transactions

Our Bureau Mumbai | Updated on March 12, 2018 Published on December 22, 2011

mobilebank

Individual banks can now place transaction limits based on their own risk perception.





Customers will soon be able to transact more than Rs 50,000 through their mobile phones.

The Reserve Bank of India has removed the cap of Rs 50,000 per day per transaction through mobile banking.

It has now been decided that individual banks can place transaction limits based on their own risk perception and with approval of their respective boards.

The RBI said that banks are increasingly extending mobile banking facilities to their customers. Inter-bank Mobile Payment Service (IMPS) developed and operated by the National Payment Corporation of India (NPCI) has also enabled real-time transfer of funds through the medium of the mobile phone between accounts in different banks.

The volume and value of mobile banking transactions are also showing an uptrend, said the RBI.

According to Mr Lalit Sinha, General Manager, Alternate Channels and New Initiative Department, Union Bank of India, it is a welcome move by the RBI.

Next phase

As of now mobile banking transactions happen only from person to person and are used mainly for remittances.

But the next phase is where mobile transactions would be used for merchant payments, that is, for purchasing goods.

In these cases the limit of Rs 50,000 would prove to be insufficient.

“A few banks are in the testing phase for this and should be rolling it out soon. So, the RBI's move has come at the right time. We will do our own risk assessment and have a reasonable limit,” Mr Sinha said.

Recently, Citi India had launched a cash management service for corporate customers, which will help them receive payments from their retailers or customers through mobile phones. In such cases, the higher limit would be helpful.

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Published on December 22, 2011
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