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RBI increases limit on payment through mobile phones
By siliconindia
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Monday, 28 December 2009, 19:44 IST
New Delhi: The Reserve Bank OF India (RBI) has increased the daily limit of banking transactions through mobile phones to 
50,000. In a recent notification, the RBI said, "Banks are now permitted to offer this (mobile banking) service to their customers subject to a daily cap of 50,000 per customer for both fund transfer and transactions involving purchase of goods or services."
Earlier, the ceiling for fund transfer from the customers' account through debit or credit depending on the funds transfer instruction received via mobile phones was at 5,000 against shopping, and 10,000 against purchasing of goods and services.
Under the scheme, an account holder can transfer money through mobile to another person, who will receive the cash either through an ATM or a business correspondent. The RBI has also pegged the limit for cash transfer through ATMs or business correspondents at 5,000 per transaction, subject to a monthly ceiling of 25,000. Out of 32 banks that have been allowed by RBI to provide mobile banking facility, 21 lenders have already started these services.
Earlier this month, RBI Deputy Governor K C Chakrabarty had hinted at raising the limit, by pointing out that transaction limits of 5,000 and 10,000 were not sufficient for buying airline tickets. Last year in October, RBI had issued operating guidelines for banks to transact via mobile phones. RBI had said the services would be restricted only to customers of banks and holders of debit and credit cards.
In addition, the RBI asked banks to report suspicious mobile banking transactions to Financial Intelligence Unit-India, as was the practice for normal banking transactions. RBI said that rupee-based domestic services would be provided and "use of mobile banking services for cross border inward and outward transfers is strictly prohibited."
50,000. In a recent notification, the RBI said, "Banks are now permitted to offer this (mobile banking) service to their customers subject to a daily cap of 50,000 per customer for both fund transfer and transactions involving purchase of goods or services."
Earlier, the ceiling for fund transfer from the customers' account through debit or credit depending on the funds transfer instruction received via mobile phones was at 5,000 against shopping, and 10,000 against purchasing of goods and services.
Under the scheme, an account holder can transfer money through mobile to another person, who will receive the cash either through an ATM or a business correspondent. The RBI has also pegged the limit for cash transfer through ATMs or business correspondents at 5,000 per transaction, subject to a monthly ceiling of 25,000. Out of 32 banks that have been allowed by RBI to provide mobile banking facility, 21 lenders have already started these services.
Earlier this month, RBI Deputy Governor K C Chakrabarty had hinted at raising the limit, by pointing out that transaction limits of 5,000 and 10,000 were not sufficient for buying airline tickets. Last year in October, RBI had issued operating guidelines for banks to transact via mobile phones. RBI had said the services would be restricted only to customers of banks and holders of debit and credit cards.
In addition, the RBI asked banks to report suspicious mobile banking transactions to Financial Intelligence Unit-India, as was the practice for normal banking transactions. RBI said that rupee-based domestic services would be provided and "use of mobile banking services for cross border inward and outward transfers is strictly prohibited."