RBI removes cap on mobile banking, permits transactions up to Rs 50,000

The Reserve Bank of India (RBI) has permitted banks to allow customers to perform transactions over Rs 50,000 via their handsets.

The RBI said that this was on grounds that the volume and value of mobile banking transactions is showing an upward trend.

However, it has asked each bank to fix limits per transaction based on their own risk perception and with prior approval of its board members.

Initially when the RBI had launched mobile-based banking transactions, it had placed a cap of Rs 5,000 per day which was increased to Rs 50,000 per day in 2010.