RBI Removes Daily Cap on Mobile Banking Transactions
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/511 · issued 04 May 2011 · ~1 min read
Quick answerRBI has removed the Rs. 50,000 per customer per day transaction limit for mobile banking, effective December 22, 2011. Banks can now set their own per transaction limits based on risk assessment with board approval.
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 The earlier direction on cash disbursement of remittances has been superseded by a separate circular dated October 5, 2011.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.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
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Ensure compliance with the superseded cash disbursement guidelines as per the October 5, 2011 circular.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
❓ Common questions
Regulatory timeline
Stated effective dateeffective December 22, 2011
Decoded by BankPulse2026-06-18 22:28 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
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.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1392: DPSS.CO.PD.No.1098/02.23.02/2011-12 — "Mobile Banking Transactions in India – Operative Guidelines for Banks@" dated December 22, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2011 -12/312
DPSS.CO.PD.No. 1098 / 02.23.02 / 2011-12
December 22, 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 the guidelines appended to our circular no. RBI / 2008-09 / 208, DPSS.CO.No.619 / 02.23.02 / 2008-09 dated October 08, 2008 , followed by directions issued vide circulars RBI / 2009-10 / 273, DPSS.CO.No.1357 / 02.23.02 / 2009-10 dated December 24, 2009 and RBI/2010-11/511, DPSS.CO.No.2502 / 02.23.02 / 2010-11 dated May 4, 2011 on the captioned subject.
2. Banks are increasingly extending mobile banking facilities (financial) to their customers. Interbank Mobile Payment Service (IMPS) developed and operated by National Payment Corporation of India (NPCI) has also enabled real time transfer of funds through the medium of the mobile phone between accounts in different banks. The volume and value of mobile banking transactions is also showing an uptrend.
3. In terms of Para 2.1 of our circular dated December 24, 2009, a transaction limit of Rs. 50,000/- per customer per day had been mandated. On a review it has been decided to remove this cap. However, banks may place per transaction limits based on their own risk perception with the approval of its Board.
4. It is also clarified that the directions under Para 3 " Remittance of funds for disbursement in cash" of our circular dated December 24, 2009 stands superseded with the directions contained in our circular RBI / 2011-12 / 213 DPSS. PD. CO. No. 622 / 02.27.019 / 2011-2012 dated October 05, 2011 .
5. All other provisions of the extant guidelines on mobile banking remain unchanged.
6. The directive is issued under Section 18 of Payment and Settlement Systems Act, 2007, (Act 51 of 2007) and shall come into force from the date of this circular.
Yours faithfully,
(Vijay Chugh)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/511 · issued 04 May 2011. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6888&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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