RBI has released its annual report for the year 2009-10. According to the report a total of 35% transactions were done electronically, that includes cards, RTGS, NEFT etc. Since the electronic transactions are mostly high value ones, this contributed to 88% in value. A total of 234 Million credit card transactions were done as opposed to only 170 Million Debit Card transactions (not including ATM withdrawals).
RBI has taken a number of steps towards internet/mobile technology payment solutions in the past year.
1. To mitigate the risks arising out of the use of credit/debit cards over internet/IVRS (technically referred to as card not present (CNP) transactions), it was mandated that all CNP transactions should be additionally authenticated based on information not available on the card and an online alert should be sent to the cardholders for such transactions of value for Rs.5,000 and above.
2. To bring in transparency and facilitate orderly growth of this Pre-paid payment instruments, RBI issued guidelines in April 2009 and August 2009 on issuance and operations of pre-paid payment instruments. 25 banks and 12 non-banks have so far been accorded approval for issuing pre-paid cards.
3. The operating guidelines for mobile banking issued in October 2008 were relaxed in December 2009, facilitating mobile banking transactions up to Rs.50,000, both for e-commerce and money transfer purposes. Banks have also been permitted to provide money transfer facility up to Rs.5,000 from a bank account to beneficiaries not having bank accounts with cash payout facility at an ATM or Banking Correspondent. Till June 30, 2010, 40 banks have been granted approval for providing mobile banking facility.
Recommended Read : How Reserve Bank of India (RBI) can facilitate eCommerce and Online Transactions in India
[Naman is a startup enthusiast and has worked with couple of Indian startups as Product Manager. He is the founder of FindYogi]
