Mobile Payments in India - Operative Guidelines for Banks
The Reserve Bank of India has published a "Draft Operating Guidelines for Mobile Payments in India".
"With the rapid growth in the number of mobile phone subscribers in India banks have been exploring the feasibility of using mobile phones as an alternative channel of delivery of banking services. A few banks have started offering information based services like balance enquiry, stop payment instruction of cheques, record of last five transactions, location of nearest ATM/branch etc. Acceptance of transfer of funds instruction for credit to beneficiaries of same/or another bank in favour of pre-registered beneficiaries have also commenced in a few banks. Considering that the technology is relatively new and due care needs to be taken on security of financial transactions, the Reserve Bank of India has felt the need for a set of operating guidelines that can be adopted by banks. "
Read more about the new mobile banking guidelines in this article in India's Economic Times.
Some of my observations on the report are enclosed here
http://www.venturewoods.org/index.php/2008/06/12/mobile-payments-rbi-guidelines/
"Today, RBI took another incremental step in defining Mobile Payments in India. The bank has published draft guidelines for Mobile Payments - “Mobile Payments in India – Operative Guidelines for Banks” . It’s encouraging that steps are taken in recognizing the industry and putting standards around it. However; it seems like a cautious approach. My observations:
RBI has defined Mobile Payments as
• Exchange of Information on mobile – Balance Enquiry, Statements etc
• Payments done involving mobile
RBI has acknowledged Banks as an important partner (since banks are liable for KYC norms) in offering mobile services and therefore, such services are restricted to KYC/AML compliant instruments – Bank Accounts, Credit/Debit Cards
Implications:This would bring services like eWallet / mWallet / Store value cards under RBI scanner and I see a regulatory risk in such businesses
"
Mukul Singhal
Canaan Partners
Posted by: Mukul Singhal | June 16, 2008 at 12:12 AM