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| Mobile banking transaction cap up at Rs 50,000/day |
| BS Reporter / Mumbai Dec 25, 2009, 00:30 IST |
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Responding to banks’ petitions, the Reserve Bank of India (RBI) has raised the transaction limit for mobile banking to Rs 50,0000 a day.
This will enable customers to transfer Rs 50,000 a day through their mobile phones, as well as buy goods and services for the same amount.
At present, the limits are capped at Rs 5,000 for fund transfer and Rs 10,000 for the purchase of goods or services. In addition, transactions up to Rs 1,000 can be facilitated by banks without end-to-end encryption, which means that transaction details will not have to be encrypted at the mobile-end and decrypted at the bank-end for these amounts. Instead, it will be left to banks to deal with the risk through adequate security measures.
To facilitate the use of mobile phones for remittances of cash, RBI has allowed banks to provide fund transfer services from the accounts of their customers for delivery in cash to the recipients. The disbursal of funds to receiver will be facilitated at automated teller machines (ATMs) or through business correspondents appointed as agents by the banks. However, the maximum value of such transfers is capped at Rs 5,000 per transaction and customers can remit a maximum of Rs 25,000 per month through this service.
The disbursal of remittance funds to agents or ATMs at the receiver-end will completely be the bank’s responsibility.
The central bank has asked banks to carry out proper due diligence of the persons before appointing them as agents.
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