Final Mobile Payment Guidelines in a fortnight

With the rapid growth in the number of mobile phone subscribers banks have been exploring the feasibility of using mobile phones as an alternative channel of payments. The Reserve Bank of India, on 12th June 2008, released draft guidelines for mobile payments in India. Accordingly, a mobile phone owner can transfer money from his bank account to the bank account of another person using his mobile phone.

Reserve Bank of India (RBI) is in the process of finalizing the Operative Guidelines for banks on mobile payments. The Draft Guidelines were placed on RBI website and a number of comments have since been received. The comments are being compiled and the final Guidelines are expected to be issued in the first fortnight of August 2008.

"Banknet's Seminar on Mobile Banking & Payments" on 26th August 2008 at Taj President, Mumbai will be the first seminar to discuss the final RBI guidelines on mobile payments. This Seminar will provide a neutral platform where the regulators, Practitioners from banking, financial services & corporate, Vendors, Technology providers, consultants, academicians come together to discuss the challenges, opportunities & experiences.

With its theme “Changing Mobile Payment Landscape – Challenges & Opportunities”, the Seminar on Mobile Banking & Payments aims to keep apace with the recent developments, emerging m-payment models, newest technologies and market trends in the mobile banking & payments arena.

Aiming at long-term goal, the RBI has said, that the framework would be such so as to enable transfer of funds from account in one bank to any other account in the same way or any other bank on a real time basis irrespective of mobile network of the customer.Banks can also use SMS-based facilities to perform small-ticket payments up to Rs1,500, as per the draft guidelines.

Few banks have already started offering mobile payment services to their customers without waiting for the release of RBI's Guidelines. While RBI has no objection for use of mobile channel to provide basic services such as mobile alerts for credit or debit entry, balance enquiry etc. which are in the nature of providing information, due care needs to be taken for permitting the channel for customers to initiate payment instructions.

There are a number of attendant issues and therefore, Reserve bank of India has advised banks to keep on hold their mobile payment services till issuance of the final Guidelines.

Banknet's Seminar on Mobile Banking & Payments....read more. For registration form and further details please get in touch with us at conference@banknetindia.com

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