What changed
RBI observed that some banks launched mobile payment services before the final guidelines were released. The central bank now explicitly advises all scheduled commercial banks (excluding RRBs) and urban co-op banks to keep such services on hold until the final operative guidelines are issued.
What it means for you
Banks that have already rolled out mobile payment services must pause them immediately, except for basic informational services like alerts and balance inquiries. This ensures customer protection and regulatory consistency. Non-compliance could invite supervisory action, especially if banks are linked to unapproved mobile money transfer services.
What you must do
- Halt all mobile payment initiation services (except basic alerts/balance checks) until RBI's final guidelines are issued.
- Review and disassociate from any mobile-based money transfer service not explicitly approved by RBI or covered by existing guidelines.
- Prepare internal compliance teams to align with the forthcoming final guidelines once released.
- Communicate the hold to relevant business and technology teams to avoid inadvertent service continuation.
Who it affects
Scheduled Commercial Banks (excluding RRBs), Scheduled Urban Cooperative Banks, Banks already offering mobile payment services, Third-party mobile money transfer service providers
Can we continue providing mobile alerts for credit/debit entries and balance enquiries?
Yes, RBI has no objection to basic informational services like alerts and balance enquiries. Only payment initiation services must be kept on hold.
What if our bank has already partnered with a mobile money transfer service?
You must dissociate from any such service that has not received explicit RBI approval or is not covered by existing RBI guidelines.
When will the final guidelines be issued?
RBI is compiling and evaluating comments on the draft guidelines. No specific date is mentioned in this circular; banks should await further communication.