In a groundbreaking step towards promoting the
creation of a national mobile phone based payments system the
Reserve Bank of India (RBI) has published operational guidelines
for banks offering mobile payments services to their
customers.
creation of a national mobile phone based payments system the
Reserve Bank of India (RBI) has published operational guidelines
for banks offering mobile payments services to their
customers.
The guidelines comprehensively cover aspects as
diverse as technology and mobile phones equipped to undertake
contactless payments
diverse as technology and mobile phones equipped to undertake
contactless payments
The RBI’s guidelines come at a time when
regulation of mobile phone payments is, at best, in its
infancy.
regulation of mobile phone payments is, at best, in its
infancy.
Indeed the RBI noted: “There is very little
material available on the regulatory frame work for mobile payments
by central banks. Although there are a number of research articles
available, they refer to the practices available rather than
regulatory guidelines.”
material available on the regulatory frame work for mobile payments
by central banks. Although there are a number of research articles
available, they refer to the practices available rather than
regulatory guidelines.”
A key aspect of the RBI’s guidelines is the
emphasis placed on the need for interoperability.
emphasis placed on the need for interoperability.
The RBI specifies that while banks can only
offer mobile banking services to their own customers, they must
ensure that the service is available on all Indian mobile phone
networks.
offer mobile banking services to their own customers, they must
ensure that the service is available on all Indian mobile phone
networks.
In its guidelines the RBI noted: “The long-term
goal of the mobile payment framework in India would be to enable
funds transfer from an account in one bank to any other account in
the same or any other bank on a real time basis – irrespective of
the mobile network a customer has subscribed to. Restrictions, if
any, to the customers of particular mobile operator(s) may be only
during the pilot phase.”
goal of the mobile payment framework in India would be to enable
funds transfer from an account in one bank to any other account in
the same or any other bank on a real time basis – irrespective of
the mobile network a customer has subscribed to. Restrictions, if
any, to the customers of particular mobile operator(s) may be only
during the pilot phase.”
To ensure interoperability between banks and
mobile payments service providers the RBI recommends that banks
adopt message formats being developed by the Mobile Payments Forum
of India, a joint initiative of the Indian Institute of Technology
and the Rural Technology and Business Incubator.
mobile payments service providers the RBI recommends that banks
adopt message formats being developed by the Mobile Payments Forum
of India, a joint initiative of the Indian Institute of Technology
and the Rural Technology and Business Incubator.
Publication of the RBI’s mobile banking
guidelines were preceded by a draft policy paper on regulatory
framework for mobile banking released by the State Bank of Pakistan
in November 2007. However, in scope and technical detail the RBI’s
guidelines are considerably more comprehensive.
guidelines were preceded by a draft policy paper on regulatory
framework for mobile banking released by the State Bank of Pakistan
in November 2007. However, in scope and technical detail the RBI’s
guidelines are considerably more comprehensive.
