Mobile Banking In India: Risks And Challenges

The stage is all set for mobile banking in India. The Reserve Bank of India (RBI) has already issued notification regarding mobile banking transactions in India. The Telecom Regulatory Authority of India (TRAI) has also issued the mobile banking (quality of service) regulations, 2012.

The merger and acquisition trends in India 2011 provided by Perry4Law and Perry4Law Techno Legal Base (PTLB) have also predicted an increase in banking related mergers and acquisitions (M&As) in India.

However, India is still not ready for mobile banking and e-banking. In fact, e-banking in India is not safe. Even the RBI has warned Indian banks for inadequate cyber security. In the absence of mobile cyber security in India even the mobile banking cyber security in India missing.

Not only mobile banking cyber security is required in India but even an electronic authentication policy of India is urgently required. However, mobile governance and e-authentication in India should not be based upon Aadhar project of India. This is so because Aadhar project in its current form is not only illegal but also unconstitutional. Basing banking in general and mobile banking in particular upon Aadhar/UID would be a big mistake at this time.

Although the banking, financial and regulatory environment in India improving yet without an integrated modern banking law in India things would not improve. Similarly, mobile banking cyber security is required in India to make mobile banking in India a success. The same can be achieved by formulating as techno legal mobile governance policy of India.

Perry4Law and PTLB recommend that before switching to mobile banking, we must make it techno legal compliant. Otherwise, mobile banking in India can be more trouble than solution.