India's central bank, the Reserve Bank of India (RBI) has announced its decision to do away with the limit of Rs 50,000 per customer per day imposed on mobile transactions.

The limit on mobile transactions was imposed in 2009 by the regulator. Under the new rules, the banks will be allowed to fix their own limit on mobile transactions for customers in the country. The RBI had issued guidelines on mobile banking transactions in India in 2008 and had placed certain monetary restrictions on fund transactions.

With the improvement in the technologies and mechanism in mobile payments, the central bank allowed payment of upto Rs 50,000 in a single day and now it will allow the banks to determine the limit themselves.

Several banks are offering services in mobile banking and the RBI has already approved 52 banks for offering services through the medium. The total volume and value of transactions on mobile banking increased 300 per cent from 2.32 million with value of 1915.78 million in 2009-10 to 9.60 million with value of Rs 7806.48 million in 2010-11.

Many expected the medium to become a major platform for banking services in the near future as it has the capability to bring the service to the customers even in the remote areas where banks do not have a presence in physical sense. Mobile banking make banking services available to all through a mobile phone.