Transactions on mobile to be regulated

R Jai Krishna

NEW DELHI,INDIA: The government of India is actively looking at streamlining m-commerce in the country and has authorized the Reserve Bank of India to regulate the financial transactions made on mobile.

“The government is actively considering using the mobile as a point for financial transactions after the tremendous growth in the teledensity in the country. Even the rural population, where banks and other financial institutions could not reach due to a lot of restrictions are now equipped with the power of mobile phones. This is the major reason that the government is looking at streamlining m-commerce. However, due to the lack of regulatory framework as the industry itself is in its nascent stage, this may take some time,” said a source involved in the process.

The IT and the Finance Ministries have roped in mobile payments forum of India (MPFI) to assist the government in taking the process forward.

The IT ministry is looking at the technological aspects involved in promoting m-commerce. The government is planning to rope in all the stakeholders involved, namely the banks, mobile operators as well as the industry to promote the system, informed the source to CyberMedia News

“The RBI has now been authorized to take a final call and issue draft guidelines for regulating the financial transactions. A bill to this effect has been passed in the Parliament during its last session,” the source added.

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