The Reserve Bank of India (RBI) on Thursday raised the cap on mobile fund transaction by 10-fold to Rs50,000.
"Banks are now permitted to offer this (mobile banking) service to their customers subject to a daily cap of Rs50,000 per customer for both funds transfer and transactions involving purchase of goods / services," RBI said in its notification dated 24 December.
Presently, the limit on fund transfer through mobile phone is at Rs5,000 and on purchase of goods and services at Rs 10,000.
The RBI has also pegged the limit for cash transfer through ATMs or business correspondents at Rs5,000 per transaction subject to a monthly ceiling of Rs25,000.
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, it said.
However, the disbursal of funds at the agent / ATM will be permitted only after identification of the recipient.