Mobile Banking asked to take a breather by RBI

So yesterday the Reserve Bank of India called for banks to halt mobile banking services until it can release its operative guidelines. A significant number of Indian banks have already begun offering such services to its clients in an effort to expand their user base and to provide previously untapped populations access to banking.

But A P Hota, chief general manager at the RBI, advises banks to put plans for mobile payments on hold and to “dissociate themselves from any mobile based money transfer service which has not received explicit approval of RBI or not covered by any of the guidelines issued”. [Microcapital.org]

Hopefully such standards will come out sooner than later, as we have seen how poorly India performs with regard to financial inclusion.

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2 Responses

  1. I really hope too that the RBI releases its guidelines, so that people may start making use of mobile technology to perform bank transactions. Looking at an attractive offer about mobile banking from Barclays bank called Hello Money, I was thinking about opening an account in Barclays. Now will have to wait for a while I guess.

  2. Dear all,

    Is there anyone who has any information as to the motivation of RBIs decision other than to wait first for regulations, guidelines?

    A cautious approach can be motivated by challenges that occurred in practice, such as in Brazil with fraud, theft, operational losses on different bank partnerships to stimulate outreach.

    Please let’s bear in mind that such challenges may cause losses of poor peoples’ money and trust.

    Kind regards, Peter

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