RBI Raised The Limits of Funds Transfer/Payment via Mobile Phones

RBI Raised The Limits of Funds Transfer/Payment via Mobile Phones

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RBI has increased the cap on transferring funds or payments through mobile phones to Rs 50,000 as per the latest notification issued by them in the last week of December,2009.

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Earlier to that, the ceiling for fund transfer against shopping was at Rs 5,000 and against purchasing of goods and services was at Rs 10,000.

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“Banks are now permitted to offer this (mobile banking) service to their customers subject to a daily cap of Rs 50,000 per customer for both fund transfer and transactions involving purchase of goods/services,” RBI said in a notification.

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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.

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The RBI has also pegged the limit for cash transfer through ATMs or business correspondents at Rs 5,000 per transaction, subject to a monthly ceiling of Rs 25,000.

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Out of 32 banks that have been allowed by RBI to provide mobile banking facility, 21 lenders have already started these services.

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Earlier in December itself, RBI deputy governor K C Chakrabarty had hinted at raising the limit, by pointing out that transaction limits of Rs 5,000 and Rs 10,000 were not sufficient for buying airline tickets.

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In October,2008, RBI had issued operating guidelines for banks to transact via mobile phones.

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RBI had said the services would be restricted only to customers of banks and holders of debit and credit cards.

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It asked banks to report suspicious mobile banking transactions to Financial Intelligence Unit-India, as was the practice for normal banking transactions.

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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.”

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