Nepal Rastra Bank (NRB) has raised the limit for transactions via mobile banking and internet banking by two folds.
On Wednesday, March 3, NRB’s Payment Systems Department issued a circular to Banks and Financial Institutions (BFIs) regarding the recent revision made in the transaction limit for digital payments carried out through mobile banking and internet banking.
According to the circular by NRB, the new transaction limit for digital payments through mobile banking is up to Rs 2,00,000 daily, which was up to Rs 1,00,000 before the revision. Similarly, the daily transaction limit for merchant payment and account transfer from internet banking is up to Rs 20,00,000 each. The amount was limited to Rs 10,00,000 before.
However, there are some exclusions mentioned in the circular where this change would not be effective. They are:
- Intra-bank fund transfer of the same individual
- Government payments for tax, customs, fines, traffic payments, registration charges
- Utilities payments like electricity, water, insurance and internet
- Payment to academic institutions, events, transportation, hotels and others
- Payment to the stock brokers for the purchase of stocks and other securities
Similarly, NRB has liberalized the BFIs in setting the internal limits considering the risk factors associated with it.
The central bank has been apparently concurring with the flourishing of digital economy in the country and has taken commendable steps in contributing for the digitization of economic activities to a larger extent. However, one can not ignore the risk factor associated with how the online predators could benefit from this recent circular issued to the BFIs, payment system operators and payment system providers. Could this give an invitation for added online scams and frauds to threaten the banking system? Feel free to drop down your comments.
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