In another effort towards financial inclusion, the RBI has given in-principle approval to setting up of a new payment system that will facilitate fund transfers from bank account holders to those without accounts through automated teller machines (ATMs).
“Essentially, the sender can have the money withdrawn from his account through an ATM transaction. The intermediary processes the payment, and sends a code to the recipient on his mobile that allows him to withdraw the money from any nearby bank’s ATM,” said RBI governor Raghuram Rajan on Wednesday at the Nasscom summit, and highlighted how technologies can be used to deepen financial inclusion.
Rajan also said the RBI is in talks with market players to set up a trade receivables exchange to better facilitate credit to micro, small and medium enterprises (MSMEs). Rajan explained that MSMEs get squeezed all the time by their large buyers, who pay after long delays.
“All would be better off if the MSME could sell its claim on the large buyer in the market. The MSME would get its money quickly, while the market would get a claim on the better rated large buyer instead of holding a claim on the MSME. The large buyer could get a better price for his purchases.”
The governor also said that the RBI will “accelerate dialogue with key players” in the telecom industry in the next few months to better facilitate mobile banking through the SMS and unstructured supplementary service data channels.
The RBI had recently put out a report by a technical committee on mobile banking, which recommended a standardised procedure for registration and authentication of customers for mobile banking services and the adoption of a common application platform across all banks, which can work on any handset.