RBI lifts restrictions on Mobile Banking Transactions
The Reserve Bank of India (RBI) lifts restrictions with the daily limit of Rs50, 000 on fund transfers using Mobile Banking Transactions, allowing banks to determine their own limits based on their risk perception and board approval.
This is in line with the Central bank’s program of pushing financial inclusion and is set to benefit a 900 million mobile phone user base in the country. One bank customer can transfer funds from his account to another using even a normal phone through pre-loaded software in the phone. These transactions are presently person-to-person transfers, largely used for payment purposes as this proves to be a cheaper medium than standard services in the market.
Mobile Banking Transactions grown:
- 2010-11, number of transactions through mobile channels grew 300% to 9.6 million from 2.32 million in 2009-10.
- Value grew to Rs780 crore in 2010-11 as against Rs190 crore in the 2010 year.
Experts say, should be to popularize payments to merchants and stores through mobile fund transfers, marketers are eager about this mobile fund transfers.
Neel Chaudhary, vice-president and chief marketing officer, Obopay India, a mobile solutions provider, that offers 2 mobile banking products with cell phone major Nokia. Those 2 products are offered in association with Union Bank of India and Yes Bank. Other players in the market include Beam, Loop Mobile’s service with ZipCash and Airtel Money.
Central bank said: Distinction between various channels is becoming unclear if
- Keeping in line with the developments in mobile technology
- Increasing sophistication of mobile access devices
- Increase in options for remote connectivity and mobile application security
Banks are increasingly extending mobile financial facilities to their customers. The Reserve Bank has approved 52 banks for extending the service on Friday.
Tags: mobile Banking Transactions, RBIRelated posts
Posted in: Business News
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