Reserve Bank Of India opposes mobile banking

It is seen that there is strong opposition from the Reserve Bank of India (RBI) and the home ministry has forced the government to drop the idea of a cost effective, convenient and efficient mobile-based model of financial services that allows transfer of funds outside the banking system. The RBI is concerned that regulating the system will be difficult and it would cause uncontrolled credit creation outside the banking system. The home ministry is concerned about the misuse of the facility from a security consideration.

But then Telecom industry which was abuzz till now with mobile banking coming in, and telecos were happy that they could reach out to more no. of people through this service and provide banking system for more people across the country, but then I guess that will never happen now, as RBI and the home ministry is opposing the move.

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