View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
September 25, 2008

Reserve Bank of India announces new mobile banking guidelines

In order to ensure a level playing field and considering that the mobile banking technology is relatively new, the Reserve Bank of India has brought out a set of operating guidelines for adoption by banks, according to which only banks which are licensed and supervised in India and have a physical presence in India will be permitted to offer mobile banking services.

By CBR Staff Writer

The services shall be restricted only to customers of banks and holders of debit or credit cards issued as per the extant the Reserve Bank of India guidelines. Only Indian rupee-based domestic services shall be provided. Use of mobile banking services for cross border transfers is strictly prohibited.

The Reserve Bank of India has also insisted that only banks who have implemented core banking solutions would be permitted to provide mobile banking services.

According to the guidelines, banks offering mobile banking service must ensure that customers having mobile phones of any network operator are in a position to avail of the service. Restriction, if any, to the customers of particular mobile operator is permissible only during the initial stages of offering the service, up to a maximum period of six months subject to review.

The long-term goal of mobile banking framework in India would be to enable funds transfer from 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. This would require inter-operability between mobile banking service providers and banks and development of a host of message formats. To ensure inter-operability between banks, and between their mobile banking service providers banks shall adopt the message formats like ISO 8583, with suitable modification to address specific needs, said the Reserve Bank of India.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU