RBI hikes mobile banking transaction cap to Rs5,000
06 May 2011
The Reserve Bank of India (RBI) has increased the cap on mobile banking transactions to Rs5,000 effective 4 May 2011 from the earlier Rs1,000. Henceforth mobile banking transactions up to Rs5,000 will be permitted without insisting on end-to-end encryption, RBI said in a notification.
RBI said the decision has been taken following representations by banks to enhance the cap fixed for such transactions in the light of the extensive use of the facility.
Users of mobile banking services and also the volume of such transactions have been steadily increasing since the introduction of this facility, RBI noted.
RBI, however, directed banks to ensure that adequate security measures and velocity limits based on their own risk perception are in place.
The RBI also decided to permit the issue of mobile phone based semi-closed system pre-paid payment instruments (semi-closed m-wallets) complying with the following conditions:
* The maximum value of such instruments should not exceed Rs5,000.