India Increases Limits For Mobile-Phone Transactions

The Reserve Bank of India has increased limits for transactions initiated with mobile phones, the country’s central bank said in a notification released this week. The bank raised the limit for mobile phone funds transfers and retail purchases to 50,000 rupees (US$1,070 or 745 euros) per day, a bank spokesperson tells PaymentsSource. Previously, the central bank capped mobile funds transfers at 5,000 rupees, while it limited mobile purchases of goods and services to 10,000 rupees. Those limits stood for more than a year. “In addition, transactions up to 1,000 rupees can be facilitated by banks without end-to-end encryption,” the spokesperson adds. In addition, the central bank says it will allow banks to offer services that enable consumers to transfer funds from bank accounts that recipients can redeem in cash instead of account credits. “These funds can be [redeemed] by recipients via ATMs or through agents appointed by banks as business correspondents,” the spokesperson says. “The limit for cash transfer through ATMs or business correspondents has been capped at 5,000 rupees per transaction and 25,000 rupees monthly.”