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.