Montek Singh Ahluwalia, deputy chairman, Planning Commission has said that the Commission is not in favour of permitting operators to float banking companies, as it could lead to financial problems.
He added that in India, the customer prefers transactions being carried out by banks.
Prior to this, the Telecom Regulatory Authority of India (TRAI) had released a consultation paper, ?Issues arising out of Provisioning and Pricing of Services by Mobile Service Providers in the context of Delivery of Basic Financial Services using Mobile Phones.?
TRAI is of the opinion that the proposed framework for delivery of basic financial services is intended to promote financial inclusion, including transfer of funds under various government schemes and programmes targeted to poor people, which calls for regulating tariffs for such services.
In a statement, TRAI has said that tariff regulation is crucial if adoption of mobile banking is to be encouraged, especially among the unbanked segments of the population. In such a situation, cost effectiveness of delivery of basic financial services through mobile phones becomes an important consideration. Every effort should be made to keep the provisioning of the services affordable for the target beneficiaries.
The consultation process will also enable TRAI to finalise its recommendations on other policy issues that are vital for framing guidelines for mobile banking services.
