RBI raises m-wallet limit to Rs 50,000

New Delhi: Relaxing the norms for making payments using mobile phones, known as m-wallet, the Reserve Bank today decided to increase the limit of money-loading to Rs 50,000 from the existing limit of Rs 5,000.

"The maximum value of such prepaid semi-closed m-wallet shall not exceed Rs 50,000," a RBI notification said.

Leading mobile operators Bharti Airtel and Vodafone had tied up with SBI and ICICI Bank respectively to offer such facilities to their subscribers.

The central bank has also decided to treat semi-closed mobile wallet on par with the other semi-closed prepaid instruments.

In the semi-closed mobile wallet, money can be loaded into your cell phone from a licensed company which can be used to make payments. But it can't be used to withdraw money.

The Semi-Closed System Payment Instruments are redeemable at a group of clearly identified merchant locations or establishments. These instruments do not permit cash withdrawal or redemption by the holder.

"Keeping in view the need to facilitate the larger acceptance of mobile phone based prepaid instruments as a mode of payment, it has now been decided to bring semi-closed mobile wallet on par with the other semi-closed prepaid instrument," it said.

Those using other Semi-Closed System Payment Instruments, were already enjoying the upper limit of money value of Rs 50,000.

M-wallet can be used for various services like payment of utility bill including electricity, water telephone or mobile phone, insurance premium, cooking gas payments, ISP for internet or broadband connections, cable or direct to home (DTH) subscriptions and citizen services by government.

Source: Financial Express