What changed
The earlier daily transaction cap of Rs. 50,000 per customer for mobile banking has been removed. Banks are now free to set per transaction limits based on their own risk perception, subject to board approval. The earlier direction on cash disbursement of remittances has been superseded by a separate circular dated October 5, 2011.
What it means for you
Banks gain flexibility to design mobile banking limits aligned with their risk appetite, potentially enabling higher-value transactions. This could boost adoption of mobile banking for larger payments and fund transfers. However, banks must ensure robust risk management frameworks and board-approved policies for transaction limits.
What you must do
- Review and revise your bank's mobile banking transaction limits policy with board approval.
- Implement risk-based per transaction limits instead of the earlier daily cap.
- Ensure compliance with the superseded cash disbursement guidelines as per the October 5, 2011 circular.
- Communicate the new limits to customers and update system configurations accordingly.
Who it affects
All Scheduled Commercial Banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks
What was the earlier daily limit for mobile banking transactions?
Earlier, a transaction limit of Rs. 50,000 per customer per day was mandated as per the circular dated December 24, 2009.
Can banks now set any transaction limit?
Yes, banks can set per transaction limits based on their own risk perception, but this must be approved by the bank's Board.
Does this circular affect other mobile banking guidelines?
No, all other provisions of the existing mobile banking guidelines remain unchanged, except the removal of the daily cap and the supersession of the cash disbursement direction.