The government together with the Reserve Bank of India (RBI) have also put in place guidelines for mobile banking to prevent money laundering and terror funding through the system, according to the Indian Minister of State for Finance Namo Narain Meena.
"The RBI has authorised 40 banks till date to offer mobile banking services to their customers. To guard against money laundering, terror funding, etc, care has been taken while issuing mobile banking guidelines...," Meena said.
Under the rules, banks have to comply with various guidelines, including Know Your Customer (KYC), Anti-Money Laundering and Combating Financing of Terrorism (CFT), he added.
The minister said that banks can extend mobile banking services to any place in India with a one-time approval of the central bank. Banks can offer mobile banking services with a daily cap of Rs 50,000 (USD 1,080) per customer for fund transfer as well as transactions, he added.
