RBI to finalize M-Banking draft in two weeks

Mumbai, July 25 (UNI) The long awaited mobile based payment services draft is expected to be readied by Reserve Bank of India (RBI) within coming two weeks.

RBI had asked banks to allow customers to perform transactions even using the most basic mobile phones, in June, under its draft guidelines for Mobile-Banking.

Confirming the progress, RBI Executive Director R B Burman said, ''We are presently examining the comments received in response to the draft guidelines issued. Based on this, the final guidelines would be issued within a period of two weeks.'' The new regulation will enable banks to roll-out mobile-based payment services to their customers and utilize SMS-based services to perform small-ticket payments upto Rs 1,500.

Mr Burman said, ''We have to see the security aspects of such transactions prior to allowing banks to the implement the mobile banking system and would also examine the functioning of similar services by those banks, who presently offer the service.'' With most leading bankers including public-sector State Bank of India and Union Bank, launching their M-Banking services, it is expected to have a big impact on the economy, where three-fourth of the population spends 71 per cent of the money in cash.'' Studies have already revealed that introduction of electronic payment system in third-fourth tier towns have energized the local economies.

It is also expected to benefit small traders, migrant workers and 20 percent of the country's population, which earns less than Rs 5,000 a month.

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