Regulatory Update

Consumer Needs in Mobile Money Transfer

• Card to Card Inter-Bank Settlement- Takes 24 to 72 hours ( Visa Net/MasterCard)- Consumer needs instant money.

• Account to Account- Only via Cheque and this takes anywhere between 1 to 3 days provided this not an outstation cheque(15/20 days)

- Consumer should be able to send “instant” e-cheque.

• Cash-In & Cash-Out- India is pre-dominantly a cash economy.- However regulations today does not allow Mobile Operators/other companies except for NGO’s/section25 companies via the Business Correspondent Route

Regulatory Requirements for Mobile Money Transfer

• Allow Mobile Operators upto a limited transaction amount to - To do online settlement with the customer’s bank account which would be registered with the bank and the Telco

- To collect the settlement for the customer to be delivered to a pre-registered bank account.

- To dispense cash

• Electronic Cheques on Mobile- To be allowed- Settlement should be instant & online

Regulatory Requirements for Mobile Money Transfer

• KYC Requirements- Customer who is carded with Credit/Debit card should be treated as KYC compliant for Cash-In/Cash-out.

- Same for customers with a bank account/government ID’s- Same for customers with mobile phones, since mobile companies are already KYC compliant on their customer base

Thank You