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DripFin means Drip Finance ala Drip Irrigation (i.e. small scientific value added productive measures)

Archive for Mobile Banking

Stretching the Fabric of MFI Networks – Monitor Report

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Mobile Banking Transactions in India – Operative Guidelines for Banks (Second Draft – Sep-08)

The Reserve Bank of India has modified its earlier draft guidelines on mobile payments in India.
Click here for the updated Operative Guidelines for Banks – Mobile Banking Transactions in India.
 
Also reproduced below is The Economic Times article summarising the guidelines…
MUMBAI: Small-ticket payments and remittances from mobile phones will become a reality soon. Keeping in mind the superior reach of mobile phones as a delivery channel, the Reserve Bank of India on Friday released its final operative guidelines for mobile banking.

  • The central bank has decided to keep the limit on the ticket-size for mobile banking at Rs 2,500 per transaction, and Rs 5,000 per day. Banks have also been allowed to put in place a monthly transaction limit, depending on the bank’s risk perception of the customer.
  • While the guidelines will enable lenders such as State Bank of India and Axis Bank to go ahead with their launch of mobile-banking services, the central bank has decided to restrict the services only to holders of debit and credit cards. The card user base in the country is 80 million, with 55 million debit card users and 25 million credit card users.
  • However, it comes as a blow to players who intended to use mobile banking to reach out to the underbanked in rural India. A number of microfinance institutions and mobile payment operators such as mChek, PayMate and Obopay had tied up to offer mobile-based financial inclusion products in the hinterland. Banks, however, have been allowed to use the services of banking correspondents for extending this facility to consumers.
  • Only Indian rupee-based domestic services shall be provided on the mobile-payment platform, and the use of mobile-banking for cross-border transactions have been strictly prohibited. Banks which are based, licensed and supervised in India will be allowed to offer such services. Further, only banks which have implemented the core banking platform will be allowed to offer mobile banking.
  • At the same time, the RBI has recommended that all mobile banking transactions are validated through a two-factor authentication system, thereby complying to the latest security and encryption standards. The RBI has also said the long-term goal of the mobile-payment framework in India would be to enable funds transfer from and account in one bank to any other account in any bank on a real-time basis, irrespective of the mobile network the customer has subscribed to.
  • The guidelines also recommend that banks do not compromise on their know-your-customer and anti-money laundering guidelines. They will also be required to file suspicious transaction reports (STRs) to the Financial Intelligence Unit for all mobile banking transactions, as in the case of regular banking transactions.
  • It has also been recommended that banks explicitly state the risks to the customer and also get them to sign a contract before the service is adopted. It has also asked banks to make their mobile-banking services available across all phone networks.
  • The number of mobile phone connections in the country was at about 296 million at the end of July this year and it is growing at about 8-9 million per month, according to telecom regulator Trai. Banks have been exploring the feasibility of using mobile phones as an alternative channel of delivery of banking services. Some banks have also started offering information-based services like balance enquiry, stop payment instruction of cheques, transaction enquiry, location of the nearest ATM or branch, etc. Acceptance of transfer of funds, instruction for credit to beneficiaries of same or another bank in favour of pre-registered beneficiaries have also started in a few banks, the RBI said.

 

 

 

 

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Join Changemakers and Citi in the search for innovative and cutting-edge methods that allow financial security to become a reality for everyone. Enter and showcase your work to key decision-makers and investors.  Enter the contest, visit http://www.changemakers.net/.

Banking on Social Change – Seeking Financial Solutions for All

RBI puts a temporary halt on Mobile Payment Services

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In a significant decision, the Reserve Bank of India (RBI) has restrained banks in launching their mobile payment services Read the rest of this entry »

INNOVATIVE INNOVITI HANDHELDS !

Met Gaurav from INNOVITI  Anybody/bank considering deploying handhelds, INNOVITI  is providing a good solution. NO Smart Cards/No Mobiles, just the good ol’ magstripe card, the good ol’ EDC machine, a good o’ SIM card and all transactions can happen in real time.

 

 

Mobile Banking Transaction in India – Operative Guidelines (First Draft – June08)

Click the following link to download the draft guidelines:- 84978-rbi-mobile-payment-operative-guidelines 

 An estimated 750 million households worldwide don’t have a bank account. In Mexico, cash transactions constitute 79% of payments. In India, 91%. In China, 82%. Even in the U.S., 80 million people are in the category of the under-banked.

The potential for mobile micropayment has attracted other entrepreneurs as well.

Infact The Reserve Bank of India’s panel on Thursday recommended that banks when they offer mobile payments service must ensure that customers having mobile phones of any network operator should be in a position to request for service.

Restriction, if any, to the customers of particular mobile operator may be only during the pilot phase, the RBI stated in a draft operating guidelines for mobile payments in India.

Long-term goal

 The RBI panel recommended that banks should get the mobile payments scheme approved by their respective boards or local board (for foreign banks) before offering it to their customers.

The board approval must document the extent of operational and fraud risk assumed by the bank and the bank’s processes and policies designed to mitigate such risk.

Banks which have already started offering mobile payment service may review the position and comply to these guidelines within three months from the issuance of these guidelines, it stated.

The long-term goal of mobile payment framework in India, the RBI said, would be to enable funds transfer from an account in one bank to any other account in the same or any other bank on a real time basis irrespective of mobile network a customer has subscribed to.

This would require inter-operability between mobile payments service providers and banks and development of a host of message formats.

Banks may keep this objective while developing solution or entering into arrangements with mobile payments solution providers.

Infrastructure

 To meet the long-term objective of a nation-wide mobile payment framework, a robust clearing and settlement infrastructure operating on a 24×7 basis would be necessary. Pending creation of such an infrastructure on a national basis, banks may enter in to multilateral arrangement and create mobile switches or inter-bank payment gateways with expressed permission from the RBI.

The RBI said that its guidelines on ‘Know Your Customer (KYC)’ and ‘Anti Money Laundering (AML)’ as prescribed by the RBI from time to time would be applicable to customers opting for mobile-based banking service. The RBI said that the services should be restricted to only to bank accounts and credit card accounts in India which are KYC and AML compliant and only Indian rupee-based services should be provided.

Registration

 Banks should offer mobile-based banking service only to their own customers and banks should have a system of registration before commencing mobile-based payment service to a customer. Prior registration of the customers would be necessary irrespective of the type of service requested.

For the standard level service, one time registration should be done through a signed document.

DhanaX Launched !!

Siva, a self motivated entrepreneur launched www.dhanax.com. A Online P2P lending aimed at income borrowers.

dhanaX(http://dhanax.com ) provides a stable platform through which individuals can directly lend to low income borrowers with the help of partner organizations. dhanaX thus effectively connects willing lenders with credible borrowers in need of credit to start their businesses.

dhanaX Web Technologies Pvt. Ltd., headquartered in Bangalore, is an innovative social lending enterprise. At dhanaX, the objective is to provide easy access to credit for the enterprising but underprivileged borrower and a profitable investment opportunity for the social lender. Founded by a team of highly dedicated individuals with relevant experience in financial services, management and technology, dhanaX envisions to create a stronger society by paving the way for an economic revolution driven by the community.

The power of microfinance to transform lives is what motivates and drives dhanaX in the endeavour. dhanaX draws inspiration from the entrepreneurial spirit of thousands of small farmers, underprivileged women and small business owners across the globe. In India, close to 70% of the population is dependant on micro-enterprises, small-scale farming and other small non-farming undertakings for a livelihood. Access to cheaper and quicker credit is vital for such entrepreneurs to power their enterprises. dhanaX aims at fulfilling just such a requirement supported by individuals who believe in investing in society they live in.

With research establishing that micro loans boast a 95% repayment rate worldwide, investors have every reason to consider social lending as an attractive investment vehicle. Empowering the community around you can be a rewarding experience. Not just emotionally but financially too. And dhanaX aims to prove just that.