NewswireTODAY - /newswire/ - Ann Arbor, MI, United States, 2008/11/08 - A methodical launch of Mobile Banking Services is required to gain the trust of consumers in emerging markets.

Mobile phones are now being viewed as a medium for extending banking services. The growth in this industry can be seen in the number of subscribers in emerging markets. Take India as an example; rapid growth in users and wider coverage of mobile phone networks have made this medium an important platform for extending banking services to customers. With the rapid growth in the number of mobile phone subscribers in India (about 261 million as at the end of March 2008 and growing at about 8 million a month), banks have been exploring the feasibility of using mobile phones as an alternative channel for delivering banking services.

The Reserve Bank of India (RBI) understands this extended reach and wants to ensure that there is a level playing field. Therefore it wants to help ensure this technology is tested by the banks for sometime before it is opened up for mainstream. On Oct 8th it issued its new guidelines to be adopted by the banks. The banks which operate under the purview of RBI, are permitted to offer this facility to their customers subject to a daily cap of Rs. 5000/- (Apx USD 100) per customer for funds transfer and Rs.10,000/- (Apx USD 200) per customer for transactions involving purchase of goods/services.

“We understand RBI’s perspective. While this may not be the best policy decision for businesses; it is the right thing to do at this time. Any haste in doing a widespread rollout of such systems could cause mistrust and may require wider restrictions and stifling mainstream roll-out and growth in the future” says Vineet Katial, Chairman and Managing Director, Krores Limited. This allows companies to take advantage of this brief pause and develop solutions to realistic problems facing mobile banking in India. Barriers such as language, education, networks and compliance are a few that need to be addressed before Mobile Remittances and Payments can gain their full potential.

About Krores
Krores (krores.com) is a global specialist in prepaid card payment mechanisms, allowing our customers to send money to family and friends all over the world with our remittance cards. We facilitate quick payment of wages and salaries with our Payroll card. In addition our gift cards are the ideal way to give that special someone the choice and freedom to buy what they want. Our multipurpose card has many uses and comes in plastic as well as virtual form. It is an ideal personal budgeting tool, saves you using a credit card for online purchases, an ideal travel companion and many other uses limited only by your imagination. Our cards can be used worldwide at 24 million locations and at more than 1,000,000 ATMs giving you safe secure access to your money around the clock.

Agency / Source: Krores

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