Customers will now be able to credit and debit money from mobile phones sitting at their homes as the Reserve Bank of India on Wednesday approved mobile banking norms for the banks with immediate effect.
Core banking solutions (CBS) enabled banks, would be allowed to offer mobile banking services to customers having debit or credit cards, the regulator said in a notification in Mumbai.
However, the banks would not be allowed to use mobile banking services for cross-border inward and outward transfers, RBI said.
Initially the banks would be allowed to offer this facility up to Rs 5,000 per customer for funds transfer and Rs 10,000 per customer for transactions involving purchase of goods or services.
They, however, would be permitted to increase the monthly transaction limit depending on the credit profile of the customer.
The banks have to follow know-your-customer and anti-money laundering norms to provide mobile banking facility to customers. Also, they have to file suspicious transaction report to the Financial Intelligence Unit for mobile banking as applicable in case of normal banking operations.
Customers have to register with the banks to avail the mobile services, the apex bank said adding there would be a document-based registration and physical presence of the customers would be mandatory.
Banks would be required to communicate complete details of the service offered to the customers at the time of registration.
In addition, the banks have to insure themselves against risks arising out of unauthorised transfers through hacking.