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Make use of mobiles for financial transactions

business Updated: Oct 29, 2008 21:46 IST

The Reserve Bank of India recently released guidelines on financial transactions over mobile phone, paving the way for more structured and wider use of the system.

While mobile banking had been a growing field, the recent changes will help an individual make best use of the situation. Each of the RBI guidelines needs to be understood properly so that right action can be taken.

Making purchases
Mobile phones can be used to make purchases. The higher limit of purchase through a mobile phone has been set at Rs 10,000.
With this facility, a customer can do shopping sitting in his living room. This facility not only helps customers, but also the economy with more money getting injected.

There are many facilities available on mobile phones for this purpose. The process of buying and making payments should be understood well before using these facilities.

Fund transfer
When it comes to mobile fund transfers, which means transferring money using the mobile phone, the upper limit has been increased to Rs 5,000. A person can pay bills up to this amount using the mobile phone.

The limit is the figure for a day. This means two things, as far as the user is concerned. One is that they can pay multiple bills when it comes to making payments and secondly, they can also spread out their payments if there are multiple amounts to be paid. The higher limit ensures that this facility can be widely used.

Validity period
Banks have also been told to ensure that mobile transfers are validated through strict systems. This means a higher amount of security while dealing with these transactions.

Purchases and money transfers through mobile phones can perpetuate fraud and to safeguard the interest of customers, strict security is a must.

Good security for this system ensures that an individual does not have to worry about the safety of his funds and the transaction, and can use the system as and when he desires.