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RBI lifts Rs 50,000-a-day cap over mobile banking transactions

RBI lifts Rs 50,000-a-day cap over mobile banking transactions

The Reserve Bank of India (RBI) has removed the transaction limit of Rs 50,000 per customer per day on mobile banking transactions.

No per-day cap on mobile banking transactions
If you prefer electronic money over cold cash, you can now use your mobile phone for big-ticket transactions.

The Reserve Bank of India (RBI) has removed the transaction limit of Rs 50,000 per customer per day on mobile banking transactions. However, banks are free to set their own per-transaction limits based on their own risk perception with the approval of their boards. The cap of Rs 50,000 was fixed by the apex bank in December 2009.

Mobile banking is gradually becoming popular in the country.

"Banks are increasingly extending mobile banking facilities to their customers. Interbank mobile payment service developed and operated by National Payment Corporation of India has also enabled real-time transfer of funds through...mobile phones between accounts in different banks. The volume and value of mobile banking transactions is also showing an uptrend," RBI said in a statement.

In October 2011, the RBI had doubled the transaction limit on small money transfers through conventional means to Rs 10,000 with a view to facilitate transfers to people without bank accounts.