What changed
RBI issued a set of operating guidelines for mobile banking transactions in India, effective immediately from the date of the circular (October 8, 2008). These guidelines were finalized after a wide consultative process and are issued under Section 18 of the Payment and Settlement Systems Act, 2007.
What it means for you
Banks must now comply with these new guidelines to offer mobile banking services, ensuring uniformity and security. The guidelines aim to create a level playing field among all banks as mobile banking adoption grows. Non-compliance could affect a bank's ability to offer mobile banking services.
What you must do
- Review the operative guidelines and ensure your bank's mobile banking services comply with all requirements.
- Update internal policies and procedures to align with the new guidelines effective immediately.
- Train relevant staff on the guidelines to ensure proper implementation and oversight.
- Coordinate with technology partners to ensure mobile banking platforms meet regulatory standards.
Who it affects
All scheduled commercial banks including RRBs, Urban co-operative banks, State co-operative banks, District central co-operative banks
What is the legal basis for these mobile banking guidelines?
The guidelines are issued under Section 18 of the Payment and Settlement Systems Act, 2007, without prejudice to other approvals required under any other law.
When do these guidelines become effective?
The guidelines are operational with immediate effect from the date of the circular, October 8, 2008.
Which banks are covered by these guidelines?
All scheduled commercial banks including Regional Rural Banks, urban co-operative banks, state co-operative banks, and district central co-operative banks.