With a view to allowing customers to transfer bigger amounts and in line with growing popularity of the system, the Reserve Bank of India (RBI) today removed the Rs 50,000 transaction limit through mobile phones.
"On a review it has been decided to remove this cap [of Rs 50,000 per customer per day]," the RBI said in a notification.
The central bank, however, added that lenders may place per transaction limits based on their own risk perception with the approval of their boards.
It said banks are increasingly extending mobile banking facilities 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," the RBI said.
The cap of Rs 50,000 was fixed by the apex bank in 2009.
The RBI's latest decision comes a few months after it doubled the transaction cap on small money transfers through conventional means to Rs 10,000 with a view to facilitating fund transfers to people, particularly migrants, who do not have bank accounts.