The Reserve Bank of India issued a new set of guidelines for Mobile Banking in India. Some of the changes are welcome, but we believe more are in order: 1. Larger base covered: This is a key change. Mobile Banking can now be offered to customers of banks whether or not they have debit or credit cards. As per the earlier guidelines, it appeared that Mobile Banking was restricted only to debit/credit card holders with bank accounts. That's the difference adding an "or" to section 2.1 has made. 2. Physical verification mandatory, but can be relaxed: In the earlier guideline as per section 3.1, "Banks shall put in place a system of document based registration with mandatory physical presence of their customers, before commencing mobile banking service." There's a loophole now, with the addition of the following sentence: "Reserve Bank would consider relaxation in specific cases while approving the proposals of banks." Our take: do away with a separate physical verification for mobile banking. Physical verification is done separately for opening a bank account and getting a mobile phone connection. Why a third verification for mobile banking? 3. Inter-operability Remains: this is a tough one. Beyond a period of six months, banks will have to offer the mobile banking service with all mobile operators, should the customer decide to switch operators. This has not been modified in the new guidelines. Out take: While interoperability is desirable, it effectively puts banks at the mercy of mobile operators. For example, what if,…
- Over 20 GAC orders sent to Meta and WhatsApp in October, show transparency reports December 7, 2023
- 28 crypto companies have registered with the Financial Intelligence Unit: Ministry of Finance says December 7, 2023
- Big Tech Companies’ Representatives Debate the varying approaches to AI regulation at Carnegie India Summit December 7, 2023
- New Mexico Sues Meta Over Child Safety Failings on Its Platforms December 7, 2023
- Government agencies demand push notification data from Apple, Google to spy on users: US Senator December 7, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...
Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...
RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.
Straw man fallacy: IT Ministers’ defence of government exemptions in data protection law misses the point
Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...
The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...