Mode of payment to shift from credit/debit card to mobile phone

Soon you don't have to carry your plastic money for your payments as your mobile number will act as the credit card number.

Reserve Bank of India (RBI) in its annual policy statement informed that it was in the process of formulating the guidelines for a payment system using mobile phones. RBI is discussing with Banks, service providers and industry bodies to develop the payment system. RBI said the draft guidelines would be placed on its website by June 15.

In India the usage of mobile is rising rapidly. There are about 250 million mobile phone connections in the country whereas credit card holders are far lower as compared to number of mobile connections. Hence, mobile for payments is being considered for quite some time.

As reported by The Times of India, RBI said in the policy statement "The rapid expansion of this mode of communication has thrown up a new delivery channel for banks." RBI further states "This channel facilitates small value payments to merchants, utility service providers and the likes and money transferred at a low cost."