No mobile wallet facility for operators | india | Hindustan Times
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No mobile wallet facility for operators

RBI deputy governor HR Khan on Wednesday ruled out allowing mobile network operators from offering cash-out or mobile wallet facility unless they convert their services as banking business correspondents, HT reports.

india Updated: Sep 05, 2012 23:26 IST
HT Correspondent

Reserve Bank of India (RBI) deputy governor HR Khan on Wednesday ruled out allowing mobile network operators from offering cash-out or mobile wallet facility unless they convert their services as banking business correspondents.

“We don’t want to permit cash-out facility by mobile network operators (MNOs),” said Khan at the second day of the FICCI-IBA banking summit.

“We are very clear that they should not bypass the banking regulations. However, mobile wallet facility can be given to them if they work as business correspondents of banks.”

On using mobile banking for cross-border remittances, he said there are issues because of security concerns in the quality of flow, anti-money laundering rules and know your customer regulations, among others.

On conducting more open market operations to improve liquidity in the system in a tight interest rate regime, Khan said, “We have indicated that if the liquidity goes below 1% plus or minus of net demand and time liabilities, we will conduct open-market operations.”