Mobile Banking: Transaction Limit For Mobile Wallet Card Increased to INR 50K
Semi-closed wallet are prepaid payment instruments that are redeemable at a group of clearly-identified merchant locations/ establishments which contract specifically with the issuer to accept the payment instrument. These instruments do not permit cash withdrawal or redemption by the holder. Essentially, what this implies is that operator subscribers cannot use the ‘currency’ to buy talk time (RBI has mandated that the prepaid currency needs to be kept separate from talk time currency).
Very recently, Airtel received RBI’s nod to launch mobile payment service in India and so far, RBI has given license to 12 companies to launch their semi-closed prepaid wallet (Mobile Banking: Nokia Partners with Union Bank of India | Mobile Money Services Launched by Nokia [Complete Details]).
Also, RBI has increased the transaction limit that are permitted without end-to-end encryption.
“The users of mobile banking services and also the volume of such transactions have been steadily increasing since the introduction of this facility. As per the current instructions mobile banking transactions up to ` 1000/- are permitted without insisting on end-to-end encryption. Banks have been representing to the Reserve Bank to enhance the cap fixed for such transactions given the extensive use of this facility.
It has, therefore, been decided to increase the limit of such transactions without end-to-end encryption to 5000/- with effect from the date of this circular. Banks may ensure to put in place adequate security measures and velocity limits based on their own risk perception.”
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