Responding to banks’ petitions, the Reserve Bank of India (RBI) has raised the transaction limit for mobile banking to Rs 50,0000 a day. This will enable customers to transfer Rs 50,000 a day through their mobile phones, as well as buy goods and services for the same amount.
At present, the limits are capped at Rs 5,000 for fund transfer and Rs 10,000 for the purchase of goods or services. In addition, transactions up to Rs 1,000 can be facilitated by banks without end-to-end encryption, which means that transaction details will not have to be encrypted at the mobileend and decrypted at the bankend for these amounts. Instead, it will be left to banks to deal with the risk through adequate security measures.
To facilitate the use of mobile phones for remittances of cash, RBI has allowed banks to provide fund transfer services from the accounts of their customers for delivery in cash to the recipients. The disbursal of funds to receiver will be facilitated at automated teller machines (ATMs) or through business correspondents appointed as agents by the banks. However, the maximum value of such transfers is capped at Rs 5,000 per transaction and customers can remit a maximum of Rs 25,000 per month through this service.
The disbursal of remittance funds to agents or ATMs at the receiver-end will completely be the bank’s responsibility.
The central bank has asked banks to carry out proper due diligence of the persons before appointing them as agents.
DPSS.CO.No.1357/ 02.23.02/ 2009-10 December 24, 2009
A reference is invited to the guidelines appended to our circular no. RBI/2008-09/ 208, DPSS.CO.No.619 /02.23.02/ 2008-09 dated October 08, 2008, on the captioned subject.
2. Based on the requests received from the banks facilitating mobile banking transactions, the guidelines are modified as under:
I. Transaction limit: In amendment of provisions of paragraph 8.1 of the above guidelines, banks are now permitted to offer this service to their customers subject to a daily cap of Rs 50,000/- per customer for both funds transfer and transactions involving purchase of goods/services. Presently, such transactions are subject to separate caps of Rs 5000/- and Rs 10000/ -respectively.
II. Technology and Security Standard: Transactions up to Rs 1000/- can be facilitated by banks without end-to-end encryption. The risk aspects involved in such transactions may be addressed by the banks through adequate security measures.
3. Remittance of funds for disbursement in cash:
In order to facilitate the use of mobile phones for remittance of cash, banks are permitted to provide fund transfer services which facilitate transfer of funds from the accounts of their customers for delivery in cash to the recipients. The disbursal of funds to recipients of such services can be facilitated at ATMs or through any agent(s) 2
appointed by the bank as business correspondents. Such fund transfer service shall be provided by banks subject to the following conditions:-
I. The maximum value of such transfers shall be Rs 5000/- per transaction.
II. Banks may place suitable cap on the velocity of such transactions, subject to a maximum value of Rs 25,000/- per month, per customer.
III. The disbursal of funds at the agent/ATM shall be permitted only after identification of the recipient. In this connection, attention of banks is drawn to the provisions of the Notification dated November 12, 2009, issued by Government of India, under Prevention of Money Laundering Act, 2002, as amended from time to time.
IV. Banks may carry out proper due diligence of the persons before appointing them as authorized agents for such services.
V. Banks shall be responsible as principals for all the acts of omission or commission of their agents.
4. The directive is issued under Section 18 of Payment and Settlement Systems Act, 2007, (Act 51 of 2007).
Chief General Manager