What changed
The daily transaction limit for mobile banking (funds transfer and purchase of goods/services) has been raised to Rs 50,000 per customer, replacing the earlier separate caps of Rs 5,000 and Rs 10,000. Transactions up to Rs 1,000 can now be processed without end-to-end encryption, subject to adequate security measures. Banks are permitted to offer fund transfer services for cash disbursement at ATMs or through business correspondents, with a per-transaction limit of Rs 5,000 and a monthly cap of Rs 25,000 per customer.
What it means for you
Banks can now offer significantly higher mobile transaction limits, enabling customers to use mobile banking for larger payments and purchases. The relaxed encryption requirement for small-value transactions reduces operational complexity and costs. The new cash disbursement facility expands financial inclusion by allowing mobile-initiated remittances to be collected in cash, but banks must ensure robust due diligence and compliance with anti-money laundering norms.
What you must do
- Update mobile banking systems to implement the new daily cap of Rs 50,000 per customer for all transactions.
- Review and adjust security protocols for transactions up to Rs 1,000 that no longer require end-to-end encryption, ensuring alternative risk mitigation measures are in place.
- Develop and deploy cash disbursement services via ATMs or business correspondents, with strict adherence to the Rs 5,000 per transaction and Rs 25,000 monthly limits.
- Conduct thorough due diligence on agents appointed for cash disbursement and ensure compliance with Prevention of Money Laundering Act requirements.
- Communicate the revised limits and new services to customers through appropriate channels.
Who it affects
All Scheduled Commercial Banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Mobile banking customers, Business correspondents and agents handling cash disbursement
What is the new daily transaction limit for mobile banking?
The daily cap is now Rs 50,000 per customer for both funds transfer and purchase of goods/services, replacing the earlier separate limits of Rs 5,000 and Rs 10,000.
Are there any changes to encryption requirements for mobile transactions?
Yes, transactions up to Rs 1,000 can be processed without end-to-end encryption, but banks must implement adequate security measures to address risk aspects.
Can customers now receive cash through mobile banking?
Yes, banks can offer fund transfer services where recipients can collect cash at ATMs or through authorized agents, subject to a per-transaction limit of Rs 5,000 and a monthly cap of Rs 25,000 per customer.