Mobile Banking norms

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 RBI 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 crossborder transfers through mobile banking is strictly prohibited, the banking regulator added in the draft, the comments on which are invited from public by Sept 29. 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 irrespective of the mobile network of the customer.