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The mobile phone has not just remained a tool of communication. Instead of using a credit or debit card for making payments, the cell phone can be used for the same purpose. The Reserve Bank of India is in the process of developing certain guidelines for a payment system that can be used by mobile phones. There are discussions going on between RBI and various banks, service providers and industry bodies to develop this payment gateway system.
At present there are about 250 million mobile phone connections in the country and it is growing day by day. In contrast, number of credit card holders stand at a paltry 10 million. Hence, the use of mobile phones for payments has been under wraps for quite some time. If this comes into effect, this will open up a whole new set of opportunities for the common man.
What this means is a person, for example, will be able to access his bank account through the mobile phone. He will be able to transfer money to someone else's account easily. The mobile phone can also be used as a charge card whereby certain amount can be loaded onto the chip of the phone. Then, the phone can be used to make payments. RBI said that the fast development of the mobile phone as a communication device has opened up various new delivery systems. It further added that this will allow small value payments to merchants and utility service providers.
