RBI says no to mobile wallet for operators

Reserve Bank of India (RBI)Deputy Governor, H R Khan, on Wednesday, said the apex bank will not allow mobile network operators to offer cash-out facility under their mobile banking services.

He said they can offer such service if they work as business correspondents (BCs) for banks.
There are issues in permitting cash-out in mobile wallet, Khan said.
He explained that we have to see that mobile network operators (MNOs) do not get to ‘bypass banking’ and that is why cash-out will not be permitted. Of course, if it acts as a BC, then at a BC point, cash-out is permitted.”

Cash-out facility, enables a customer to withdraw money using his mobile wallet and is currently not allowed in the country.