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RBI removes cap from mobile banking transactions
Submitted by mffocus on Sat, 12/24/2011 - 02:26
Microfinance Focus, December 24, 2011: Reserve Bank of India (RBI) has removed the limit of Rs. 50, 000 on mobile banking transactions and has allowed banks to place per transaction limits based on their own risk perception with the approval of its Board.
In a notification sent to the banks, RBI said that the banks are increasingly extending mobile banking facilities (financial) to their customers.
Interbank Mobile Payment Service (IMPS) developed and operated by 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 is also showing an uptrend.
In October this year, RBI liberalized the cash pay-out arrangements for amounts being transferred out of bank accounts to beneficiaries not having a bank account and enhancing the transaction cap from the existing limit of Rs. 5,000 to Rs. 10,000 subject to an overall monthly cap of Rs. 25,000 per beneficiary.
It also allowed walk in customers not having bank account to transfer funds to bank accounts subject to a transaction limit of Rs. 5,000 and a monthly cap of Rs. 25,000 per remitter.