An expert committee set up by the Reserve Bank of India has recommended that operators and manufacturers could pre-install a common mobile banking application to all new mobile phones and subscriptions that are sold in the country.
For existing users, the app could be sent over-the-air, the committee which examined challenges faced by banks in improving adoption of mobile banking recommended.
The committee said,
The common application may be pre-loaded in the handset – the mandate to be issued by Govt. of India to all handset manufacturers/resellers in India. Handset manufacturers to burn the mobile banking application on all new handsets.
STK application can be embedded on operator SIM and can be distributed to customers by the MNOs. Keys necessary for encryption are stored in the SIM.
Mobile banking application can be developed and distributed to customer by trusted third parties, MNOs and handset manufacturers/resellers.
The mobile application (multi-bank application) can be developed and distributed by large corporates, third party players, MNOs and handset manufacturers/resellers.
Third parties for e.g. LIC, Railways, MNOs, handset manufacturers/resellers who provide goods or services on credit/hire-purchase can develop and deploy such applications.
Banks and mobile operators may initiate pilots using white-label multi-bank SIM application tool kit (STK) which can be distributed via application on SIM that allows SMS encryption. Customers, merchants, agents of any bank can transact through this interface.
The RBI committee also said that network operators have to realize and improve their role to ensure that mobile banking reaches its full potential by helping with appropriate technology and channels to reach the targeted users.
“The key to cheap and universal payments and remittances will be if we can find a safe way to allow funds to be freely transferred between bank accounts and mobile wallets, as well as cashed out of mobile wallets, through a much larger and ubiquitous network of business correspondents,” RBI Governor Raghuram Rajan said last week at a Lecture.
Full report here.
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