RBI lays down norms for mobile banking | india | Hindustan Times
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RBI lays down norms for mobile banking

Mobile users may soon be able to credit or debit money from their bank accounts using handsets, if the RBI's operative guidelines for banks regarding mobile payments come into practice.

india Updated: Sep 19, 2008 22:38 IST

Mobile users may soon be able to credit or debit money from their bank accounts using handsets, if the Reserve Bank's proposed operative guidelines for banks regarding mobile payments come into practice.

Mobile payment involves debiting or crediting funds into a customers account on the basis of instruction received through the mobile phones.

The Reserve Bank proposed that licensed banks would be allowed to offer mobile payment services to Indian residents after getting approval from their boards. The facility would be restricted to only bank accounts and credit card accounts, which comply to know your customer norms, a release said.

Also, only Indian currency would be used for the services and cross-border transfers through mobile banking is strictly prohibited, the banking regulator added in the draft, the comments on which are invited from public by September 29.

Aiming at long-term goal, RBI said the framework would be such so as to enable transfer of funds from account in one bank to another in the same bank or any other on a real time basis irrespective of mobile network of the customer.

Also, the anti-money laundering would be applicable for the customers opting for mobile-based banking services, the draft said, adding combating financing of terrorism from time to time would also be applicable to mobile based banking services, it added.

Only those banks, which have implemented core banking solutions, would be permitted to provide such services, the draft said.