INCREASE IN THE LIMIT OF MOBILE BANKING IN INDIA

We hear about mobile banking, but many of us don't know the features as well as how to use mobile banking as we don't feel any requirement. But if we use it, mobile banking is very fast and useful.

What is Mobile Banking-Mobile banking is the type of using our account in bank to do the transaction. It may include transfer of funds,checking the account balance,request for check book, hot-listing of lost debit or credit cards, know the status of check etc. 

So Reserve bank of india has increased the limit of transaction of mobile banking and issue guidelines on 04-05-2011 about the mobile banking as mobile banking users are trend to grow.These guidelines are as under.

RBI/2010-11/511
DPSS.CO.No.2502 /02.23.02/ 2010-11

May 4, 2011

The Chairman and Managing Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks

Madam/ Dear Sir

Mobile Banking Transactions in India - Operative Guidelines for Banks

A reference is invited to Para 125 of the Monetary Policy statement (2011-2012), the operative guidelines on mobile banking for banks dated October 08, 2008 and our circular no.  RBI/2009-10/273 DPSS.CO.No.1357/02.23.02/ 2009-10 dated December 24, 2009, on the subject.

2. The users of mobile banking services and also the volume of such transactions have been steadily increasing since the introduction of this facility. As per the current instructions mobile banking transactions up to  ` 1000/- are permitted without insisting on end-to-end encryption. Banks have been representing to the Reserve Bank to enhance the cap fixed for such transactions given the extensive use of this facility.

3. It has, therefore, been decided to increase the limit of such transactions without end-to-end encryption to ` 5000/- with effect from the date of this circular. Banks may ensure to put in place adequate security measures and velocity limits based on their own risk perception.

4. The directive is issued under Section 18 of Payment and Settlement Systems Act, 2007, (Act 51 of 2007).

Yours faithfully,

G. Padmanabhan
Chief General Manager

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