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Friday, 15 July 2016

Master Circular – Mobile Banking

Master Circular – Mobile Banking
1. Purpose
To provide a consolidated document containing all rules / regulations / procedures prescribed to be followed by banks for operationalising Mobile Banking in India.
2. Classification
Statutory Guidelines issued by Reserve Bank of India under section 18 of Payment & Settlement Systems Act, 2007, (ACT 51 of 2007).
3. Previous Guidelines consolidated
The Master Circular compiles the instructions contained in the circulars issued on Mobile Banking as listed in Appendix.
4. Scope
The guidelines are applicable to all commercial banks (including Regional Rural Banks), Urban Cooperative Banks, State Cooperative Banks and District Central Cooperative Banks.
5. Introduction
5.1 Mobile phones, as a medium for extending banking services, have attained greater significance because of their ubiquitous nature. The rapid growth of mobile users in India, through wider coverage of mobile phone networks, have made this medium an important platform for extending banking services to every segment of banking clientele in general and the unbanked segment in particular.
5.2 In order to ensure a level playing field, Reserve Bank brought out a set of operating guidelines for adoption by banks. The guidelines, finalised following a wide consultative process with the stakeholders, were first issued in October 2008 and since then have been updated keeping in view the developments taking place.
5.3 For the purpose of the instructions contained in this Master Circular, ‘Mobile Banking transaction’ means undertaking banking transactions using mobile phones by bank customers that involve accessing / credit / debit to their accounts
5.4 Banks are permitted to offer mobile banking services (through SMS, USSD or mobile banking application) after obtaining necessary permission from the Department of Payment & Settlement Systems, Reserve Bank of India. Mobile Banking services are to be made available to bank customers irrespective of the mobile network.


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