Even a basic handset with pre-loaded software can be used to transfer funds. This move of RBI is set to benefit a millions of mobile phone users in India.
Seeing the emerging popularity of mobile channel among banking customers and recent demand for allowing them to transfer huge amounts, the central bank decided to relax the limit on phone based baking transaction.
However, RBI said per transaction limit can be based on bank’s own risk perception with the approval of board.
“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” the central said in its notification.
RBI in October 2008 in its guidelines had placed lot of monetary restriction on mobile based transaction as it thought mobile technology was new at that time. This restriction was relaxed in December 2009 on request from banks.
Initially when RBI had launched mobile banking transaction, it had placed a limit of Rs 5,000 per day which was increased a year ago to Rs 50,000 per day.
The central bank has not prescribed limit on account-to-account fund transfers through other channels such as Internet banking.