RBI raises mobile payment limit to Rs 50,000

Did you find the Rs 5,000 limit for payments through mobile phone-based payment instruments too low? Now, you can make larger payments through your mobile phone as the Reserve Bank of India (RBI) has raised the limit to Rs 50,000.

"The position has been reviewed...to facilitate larger acceptance of mobile phone-based prepaid payment instruments (mwallets) as a mode of payment," the RBI said in a notification.

Semi-closed m-wallets will now be on a par with other semi-closed prepaid instruments. Semi-closed payment instruments can be used at select merchant locations which have a contract with the issuer. These instruments do not permit cash withdrawal.

The cap on mobile baking transaction without encryption has been raised from Rs 1,000 to Rs 5,000.