The Reserve Bank of India has increased the daily transaction cap via mobile banking to Rs 50,000 per customer for both funds transfer and transactions involving purchase of goods and services, and instituted a per transaction cap of Rs. 5000 for funds transfer and Rs. 10,000 for purchases. This is a significant increase over the previous set of limits: a daily cap of Rs. 5000 per customer for funds transfer and Rs. 10,000 per customer for purchases. In additiontransactions up to Rs. 1000 can be facilitated by banks without end-to-end encryption. These changes clearly seek to address two specific issues that banks have faced in implementing mobile banking services: banks feel that end-to-end encryption for low ticket transactions was costly, and limits of Rs. 5000 and 10,000 often do not permit purchase of airline tickets. (Do also read: Not Enthused By Lack Of Activity In Mobile Banking, Prepaid – Deputy Governor, RBI) Cash Withdrawal The other big change that has been instituted is that customers can use mobile phones for remittance of cash, though ATMs or agents appointed by banks (banking correspondents). Readers may recall that just last month, the RBI had allowed PCOs, grocery shops etc to act as banking correspondents. This means that using your mobile phone, you can withdraw cash from a grocery store. Such transfers are limited to Rs 5000 per transaction, and a maximum of Rs. 25,000 per month per customer can be withdrawn. Banks have been asked to place a suitable cap on the velocity of such transactions. But…
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