rbi

The following statements about Commercial Paper (CP) used in India:
1. It is an unsecured money market instrument issued in the form of a promissory
note.
2. CP can be issued for maturities between a minimum of 7 days and a maximum
of up to one year from the date of issue.

Both 1 and 2
In a bid to make commercial papers (CPs) attractive, the Reserve Bank of India has
allowed issuers to buyback these instruments before maturity. The central bank, in
its directions on CP, has also diluted by a notch the minimum credit rating
requirement for CPs so that more companies can tap this route to meet their short term
funding requirements for their operations. A CP is an unsecured money market
instrument issued in the form of a promissory note. These instruments are issued
by corporate borrowers to diversify their sources of short-term borrowings and to
provide and additional instrument to investors. In its directions on CPs, the RBI said
the buyback of CP should be through the secondary market and at prevailing market
price













Policy rates, Reserve ratios, lending, and deposit rates as of 30, October, 2012
Bank Rate9.00%
Repo Rate8.00%
Reverse Repo Rate7.00%
Cash Reserve Ratio (CRR)4.25%
Statutory Liquidity Ratio (SLR)23.0%
Base Rate9.75%–10.50%
Reserve Bank Rate4%
Deposit Rate8.50%–9.00%

RBI directs banks not to give loans for purchase of gold
• The RBI has directed banks not to give loans for purchase of gold in any form, including primary gold,
bullion and jewellery, to dissuade people from indulging in speculative activity.
• However, banks could provide finance for genuine working capital requirements of jewellers.
• The directive was issued in view of significant rise in imports of gold in recent years putting pressure on
current account deficit. India’s Gold import in 2011-12 was nearly $60 billion.











The current Governor of RBI is Duvvuri Subbarao. The RBI extended the period of the present governor up to 2013. There are four deputy governors, Deputy Governor K C Chakrabarty, Urjit Patel, Shri Anand Sinha, and Shri H.R. Khan . Deputy Governor K C Chakrabarty's term has been extended further by 2 years. Subir Gokarn was replaced by Mr. Urjit Patel in january 2013.



who among the following has been appointed a deputy governor at the
Reserve Bank of India, succeeding Subir Gokarn?
[A]Urjit Patel
[B]D.K. Mittal
[C]Deepak Singhal
[D]Vijay Chugh
Urjit Patel
Urjit Patel, a consultant at Boston Consulting Group, has been appointed a deputy
governor at the Reserve Bank of India, succeeding Subir Gokarn who was aiding the
governor in shaping the monetary policy. Patel, a doctorate in economics from the
Yale University and a non-resident senior fellow at the Brookings Institution, a US based
think-tank , will serve a two-year term at the regulator.

CRR: 4.25%

The Reserve Bank of India (RBI) cut the Cash Reserve Ratio (CRR) by 25 basis points from 4.5 to 4.25 percent.

Why this step?

• The reduction in the CRR is expected to infuse liquidity to the tune of around Rs. 17,500 crore into the banking system.
• By doing this RBI intends to preempt a prospective tightening of liquidity conditions, thereby keeping liquidity comfortable and supportive of growth.

Other steps by RBI:

• RBI cut the growth projections for GDP growth for 2012-13 from 6.5 % to 5.8 %. This was done because of a weak global environment and a sluggish domestic market with low investment.
• The central bank also raised banks’ provisioning requirement to 2.75 % from the existing 2% on restructured standard loan accounts. This has been done because of the deteriorating asset quality

its recent monetary policy, the RBI has kept the indicative policy rates
unchanged while reducing the Cash Reserve Ratio (CRR) by 25 basis points. What
is the new CRR value?
[A]4 per cent
[B]4.25 per cent
[C]4.50 per cent
[D]4.75 per cent
4.25 per cent
The RBI kept the indicative policy rates unchanged even while reducing the Cash
Reserve Ratio (CRR) — the portion of deposits that banks keep with the central
bank — by 25 basis points from 4.5 per cent to 4.25 per cent. This is expected to
release liquidity to the tune of around Rs. 17,500 crore into the banking system.
However, the RBI revised downwards the projection of GDP growth for 2012-13
from 6.5 per cent to 5.8 per cent









for transparency in bank lending rates, RBI forms a committee

In order to address the issue of lack of transparency in bank lending rates, the RBI has formed a committee. The
working group headed by the RBI Deputy Governor Anand Sinha will shape the rationales that must regulate proper,
transparent and non-discriminatory pricing of credit. The working group is anticipated to present its report by August
2012.



Indian companies can continue to buy back FX convertible bonds
The Reserve Bank of India has allowed companies to continue to buy back foreign currency convertible bonds (FCCBs)
under the approval route.
The central bank will consider proposals from Indian companies for buyback of FCCBs, if the buyback value is at a
minimum discount of 5 percent on the accreted value, it said in a statement.
The buyback scheme would lapse after March 31, the RBI.
Indian companies face convertible bond redemptions of nearly $5.5 billion this year. A sharp economic and corporate
growth slowdown, weakening of the rupee that hit record lows last month and a plunge in stock values have made the
debt obligation very costly for some companies









RBI elevates foreign investment limit in govt bonds
In a move targeted at preventing the continuous decline of Rupee, the Reserve Bank of India increased the limit of foreign investment in government bonds by $ 5 billion to $ 20 billion. The regulator also elevated limit of external commercial borrowing (ECB) to $ 10 bilion.
Currently,, foreign institutional investors (FIIs) are permitted to invest upto $ 20 billion in Indian corporate bonds. While the limit in government bonds is at $ 15 billion, FIIs are not allowed to invest in infrastructure bonds upto $ 25 billion.The RBI also curtailed the time period for the maturity of government securities (g-secs) to 3 years from earlier 5 years.
External Commercial Borrowings
External Commercial Borrowings (ECB) denote commercial loans in the form of bank loans, buyers’ credit, suppliers’ credit, securitized instruments (e.g. floating rate notes and fixed rate bonds) obtained from non-resident lenders with minimum average maturity of three years.
Govt bonds or Govt securities
These are the bonds issued by the Govt of a country in its own currency. The bond assists the government to generate money which is used to support various programmes and activities like constructing roads, hospitals, infrastructure etc. Hence, the govt bonds are a sort of loan against which the govt of a country gets a certain amount of money, for a definite amount of time, on a definite interest rate.










Recently, the Government sector banks have urged the
Reserve Bank of India (RBI) to consider perpetual non-cumulative preference
shares (PNCPS) as part of their core Tier-I capital under Basel-III norms. The
features of the PNCPS are: 1. They have no redemption dates 2. They have no
voting rights Which among the above is / are correct? [A]Only 1 [B]Only 2 [C]Both 1
& 2 [D]Neither 1 nor 2
Both 1 & 2 PNCPS is a preference share that has no redemption date and voting
rights. The claims of the investors in PNCPS will be senior to the claims of investors
in equity shares and subordinate to the claims of all other creditors and depositors.














PRESENT INTERNATIONAL  E COMMERCE TRANSACTION LIMIT SET UP RBI IS $3,000








Reserve Bank of India (RBI) announced the setting up of a high-level
committee to “spearhead” efforts to ensure accessible financial services. Who
among the following will head the committee?
K. C. Chakrabarty








Centralized electronic payment systems for more banks: RBI
The RBI has permitted all licensed banks to take part in the centralized electronic payment systems. In its notification,
the RBI declared its decision to enlarge the sub-membership route to allow RRBs
(Regional Rural Banks) and Co-Operative Banks to participate in the NEFT (National
Electronic Funds Transfer) system andRTGS (Real Time Gross Settlement) system.
Objective: To popularize electronic transfer of funds. As at present, the centralized payment systems can be accessed
only by members that include public and private sector banks.





RBI to issue notes of Rs. 1,000 in non-sequential numbering
RBI has decided to issue the currency notes of Rs 1,000 denomination in non-sequential numbering. Earlier the same
decision was taken for ` 500 notes also. In the recent statement, RBI has said that packets of notes in non-sequential
number will as usual have hundred notes. In June 2011, RBI had started issuing Rs 500 denomination notes in nonsequential
numbering and thus RBI now decided to issue banknotes of 1000 rupees denomination on similar lines. The
bands of the packets containing the currency notes in non-sequential number will be super scribed with the words ‘the
packet contains 100 notes not numbered sequentially’.
What are the benefits of this decision?
The move will possibly enhance the operational efficiency and cost effectiveness in banknote printing at banknote
presses. Apart from that, this might also help in security enhancement and RBI might be moving in future towards the
checksum feature of the Euro notes. As of now, the non-sequential notes in India are published for ` 500 notes and
Star Series notes only.
What is a "star series" banknote?











RBI doubles home loan limit to Rs. 10 lakh to promote housing for low
income groups
The RBI has doubled the limit for home loans from Rs 5,00,000 to Rs 10,00,000 for consideration under Priority Sector
Lending. This move was taken by RBI in a bid to encourage housing for low income groups in key cities. The RBI has
been decided to increase thiss limit for the bank loans extended to non-governmental agencies, approved by the
National Housing Bank (NHB) for their refinance, for on-lending for the purpose of construction or reconstruction of
individual dwelling units or for slum clearance and rehabilitation of slum dwellers.
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
 As per the existent norms, banks have to offer 40% of the total credit to the prescribed priority sectors including
housing for weaker section.
 Loans of such nature fall under indirect finance to housing sector as the final disbursement is done through NHB
approved non-governmental agencies.






RBI announces Monetary Policy
Making the first policy rate cut in 3 years, the RBI on April 17, 2012 declared the Monetary Policy for the year 2012-
2013.
Repo Rate
 The repo rate reduced under the liquidity adjustment facility (LAF) by 50 basis points from 8.5% to 8.0% with
immediate effect.
 Repo rate is the rate at which banks borrows money from RBI.
Reverse Repo Rate
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
 The Reverse Repo Rate under the LAF, determined with a spread of 100 basis points below the Repo Rate, stands
adjusted to 7.0% with immediate effect.
Marginal Standing Facility
In order to provide greater liquidity cushion:
 Rise in the borrowing limit of Scheduled Commercial Banks under the Marginal Standing Facility (MSF) from 1%
to 2% of their Net Demand and Time Liabilities (NDTL) outstanding at the end of second preceding fortnight with
immediate effect.
 Banks can continue to access the MSF even if they have excess Statutory Liquidity Ratio (SLR) holdings, as
hitherto.
 The MSF rate, determined with a spread of 100 basis points above the Repo Rate, stands adjusted to 9.0% with
immediate effect.
Bank Rate
 The Bank Rate stands adjusted to 9.0% with immediate effect.
Cash Reserve Ratio
 The Cash Reserve Ratio (CRR) of scheduled banks has been retained at 4.75% of their NDTL.
The policy actions taken are expected to:
 Stabilise growth around its current post-crisis trend;
 Contain risks of inflation and inflation expectations re-surging; and
 Enhance the liquidity cushion available to the system.
RBI Governor, Dr. Duvvuri Subbarao held that the liquidity conditions were moving towards RBI’s comfort zone and
added that there is a need to increase fuel prices for macroeconomic stability. Reacting to the RBI’s cut in repo rate,
leading banks of India he held that lending rates will fall after the RBI’s action.














RBI tightens the Reporting Requirements of the Banks in order to
monitor the Gold Import
The RBI tightens up the reporting needs of the banks in order to monitor the Gold import in India.
What are the guidelines issued?
According to the guidelines issued:-
· Banks will have to file a half-yearly statement on quantity and value of Gold imported by
nominated banks, agencies, export-oriented units (EOUs) and special economic zone (SEZs) in gem & jewellery sector,
as well as mode of payment. The statement is to be filed with the foreign exchange department of the RBI and has to
be submitted at the end of March and September.
· Banks will have to file monthly statement on the quantity and value of gold imports by the nominated agencies (other
than the nominated banks), EOUs, SEZs as well as the cumulative position at the end of the reporting month.
Why these directions were issued?
 The directions were issued due to fears of immense outflow of foreign exchange on import of gold. <<‘$’ going
out of India, as Gold is purchased in ‘$’ from Foreign Market, Indian Rupee weakens in Forex Market>>
 Such a huge outflow of foreign exchange puts pressure on the India’s CAD (Current Account Deficit). <<Large CAD
implies India’s total imports of goods, services and transfers is becoming much greater than the India’s total
export of goods, services and transfers and thus making India increasing the net debts of India to the rest of the
world.>>
Why Jewellers in India went on Strike ?








RBI nod must for FCAs for overseas investment
Indian companies willing to open, hold and maintain Foreign Currency Account (FCA) abroad with the
aim of overseas direct investments will now have to take prior permission from the RBI. The host
country regulations specify that the investments into the country is necessitated to be routed via a
designated account and FCA should be opened, held and maintained as per the rules.
What are FCA’s ?
Foreign Currency Account (FCA) is a transactional account denominated in a currency other than the home currency
and can be maintained by a bank in the home country (onshore) or a bank in another country (offshore).








RBI cuts CRR by 75 bps to 4.75%
The RBI ahead of Credit Policy review and Union Budget, cut the Cash Reserve Ratio (CRR) by 75 basis points to 4.75
% effective March 10, 2012. The CRR stood at 5.5% earlier. The CRR cut will inject Rs 48,000 crore of liquidity into the
banking system. CRR cut will ensure smooth flow of credit.
CRR has been cut to inject permanent primary liquidity into the system. This is the second CRR cut by the central bank
this year; it cut the CRR by 0.50 % in its third quarter review in January 2012. In order to mitigate tight liquidity
conditions, the cash reserve ratio was reduced by 50 basis points in the Third Quarter Review (TQR) of January 2012.
In spite of these measures, the liquidity deficit has remained large on account of both structural and frictional factors.
Further, the liquidity deficit is expected to increase significantly during the second week of March due to advance tax
outflows and the usual front loading of cash balances by banks with the Reserve Bank. The Reserve Bank will provide
its assessment of the macro-economic situation in its Mid-Quarter Review to be published on March 15, 2012






RBI sets up Panel for deeper penetration of Rural credit
The Reserve Bank of India set up a panel to recommend ways to strengthen the rural co-operative credit structure.
Head of the committee: NABARD Chairman Prakash Bakshi,
Focus:
 Review the existing Short-Term Co-operative Credit Structure (STCCS)
 Finding structural constraints in the rural credit delivery system
 Device methods to enhance the rural co-operative credit architecture

 In-depth examination of the STCCS
 Analyse alternatives to cut the cost of credit
 Test the possibility of establishment of a two-tier STCCS as against the existing three-tier structure.
 The STCCS provides credit to the small and marginal farmers in the country.





RBI

 The RBI said foreign banks with branch network of 20 and above will have to abide by the priority sector lending target, which has been retained at 40 per cent of their total advances. They are allowed to reach the target in a phased manner over a maximum period of 5 years starting April 1, 2013.
StanChart Bank, Citi Bank, HSBC and Royal Bank of Scotland have more than 20 branches in India...
THEY ARE TREATED ON PAR WITH DOMESTIC BANKS IN PRIORITY SECTOR LENDING NORMS OF RBI.



the RBI’s latest Annual Report, how much is contributed
by household financial savings contributes to the GDP in 2011-12---
7.8 per cent According to the RBI’s latest Annual Report, household financial
savings, as a percentage of GDP, fell to 7.8 per cent in 2011-12. This is the lowest
since 1989-90. The ratio averaged 11 per cent in the preceding three years. The
sharp fall in financial savings means India has to depend more on overseas flows to
fund its capital needs.







‘GST will help contain inflation’: Subir Gokarn (Deputy Governor, RBI)
Subir Gokarn (Deputy Governor, RBI) held that introduction of GST (Goods and Services Tax) would assist in various
ways viz:-
 Containing price rise as the proposed common tax regime could take off the demand pressures from the market.
 Taking off demand pressures contributing to inflation.
 Creating the space for interest rates to come down and contribute to growth momentum
 Effective management of finances of Govt













Stop foreclosure penalty on home loans: RBI
Reserve Bank of India asked banks to forthwith stop charging penalty on pre-payment of home loans taken on floating
interest rates. RBI held in its notification that abandoning prepayment penalty on home loans would lead to reduction
in the bias between existing and new borrowers. The action can aid in finer pricing of the floating rate home loans. It
was observed by Committee on Customer Service in Banks that foreclosure charges imposed by banks on prepayment
of home loans were disliked by home loan borrowers as it works like a prohibitive practice deterring the borrowers
from selecting cheaper available source. As per the committee the banks were found to be reluctant in passing on the
advantage of lower interest rates to the existing borrowers in a falling interest rate situation.








RBI promotes info sharing, inks MoU with Financial Regulators of
9 countries
The RBI with the aim to promote co-operation in information sharing b/w regulators, inked 3 MoUs with financial
regulators of nine countries. The newly signed are with:
 Jersey Financial Services Commission (JFSC)
 Financial Services Authority of UK
 Financial Supervisory Authority of Norway
Jersey Financial Services Commission (JFSC)
 It is Independent statutory body.
 Function: Regulation, licensing and supervision of financial services providers for conformity with prudential
norms and conduct of business requirements in Jersey.
Financial Service Authority
 UK’s main national financial services and market regulator
 Function: Regulation of the Financial Services and Markets Act 2000(FSMA) that provides for the supervision of
firms, financial services, and financial products as well the financial markets.
Financial Supervisory Authority of Norway
 The body is also known as Finanstilsynet
 Function: Does supervision of banks (insurance companies and investment firms, etc.) in Norway as per the
Financial Supervision Act of 1956.






Fair Practices Code for NBFCs tightened by RBI
The RBI revamped the Fair Practices Code (FPC) to be adopted by Non-Banking Finance
Companies (NBFCs)while doing lending business. The guidelines covered general
principles on enough disclosures on the terms and conditions of a loan and also adopting a
non-coercive recovery method.
A review of the guidelines made in view of the formation of a new category of NBFCs,NBFC-MFIs and also speedy
growth in NBFCs’ lending against gold jewellery
RBI held that not providing a copy of the loan agreement or enclosures quoted in the loan agreement was an unjust
practice and could lead to disputes b/w the NBFC and the borrower with regard to the terms and conditions on which
the loan was granted.
The modified FPC to be put in place by all NBFCs with the approval of their boards within 1 month from the date of
issue of RBI’s circular and should be published and broadcast on the web-site of the company for public information.
NBFCs to have the liberty of drafting the FPC, raising the scope of the guidelines but in no way sacrificing the spirit
underlying the above guidelines.
NBFCs to also mention the penal interest charged for late repayment in bold in the loan agreement.

rbi

Reserve Bank deputy governor KC Chakrabarty held that:
In order to bring down the high import of gold, RBI considers educating and
disseminating awareness in the people about the speculative nature of gold
investments and that it is not proper investment for the poor.
RBI is against the implementation of free of cost electronic fund transfer as it
believes the plan in commercially unviable
RBI criticized lenders for attributing their abrupt decrease in profits to
migration to system-recognized NPA generation saying this is equivalent to
misleading investors.

RBI decided to ease Liquidity by Buying Back Gilts for an Amount of Rs 10000 crore

The Reserve Bank of India on 3 January 2011 decided to conduct an open market operation (OMO) to inject more liquidity into the system. The RBI will buy up to Rs 12000 crore of government bonds via open market operations on 6 January 2012, including the 10-year paper which till recently was the benchmark paper.

The central bank has decided to ease liquidity by buying back gilts for an amount of R10,000 crore in the backdrop of banks accessing the Reserve Bank of India (RBI)’s borrowing window for more than R1 lakh crore each day.

RBI announced an auction for R10,000 crore worth of bonds, otherwise known as open market operation (OMO). The OMO announcement came after the market trading hours. the Reserve Bank of India decided to conduct open market operations consistent with the stance of the monetary policy and based on the current assessment of prevailing and evolving liquidity conditions.

Banks have been borrowing in excess of R 1 lakh crore a day from the RBI's liquidity adjustment facility (LAF) or repo window. The liquidity deficit in the system in recent weeks has been way beyond the limit of 1% of the net liabilities of the system, or around Rs 55000 crore.

The central bank, by conducting OMOs try to balance out liquidity and price stability in the bond market. The yields are expected to come down to 8.75% levels whenever the central bank announces OMOs while they could rise to 8.90% ahead of the bond auction.
The central bank had earlier conducted a Rs 10000-crore OMO on 24 November 2011 where it managed to purchase Rs 9435 crore worth of bonds. Yield on the benchmark bond had come off close to 10 basis points after the RBI had announced an OMO on 14 November.

The yield on the benchmark treasury paper jumped about 60 basis points since the government announced on 29 September 2011, that it would need to borrow an additional amount of around R52,900 crore in 2011-12. Between October 2011 to March 2012, the government will auction an average of Rs 13000 crore worth of new paper every week. In addition to ash management bills, treasury bills as well as state development loans will be auctioned.

RBI to issue ` 500 note with rupee symbol
 The Reserve Bank of India, RBI says that it will soon issue 500 rupees denomination bank-notes incorporating
new rupee symbol without inset letter.
 The new notes will bear the signature of RBI Governor D Subbaro and the year of printing 2011 printed on the
back of the bank note.
 The design of these notes to be issued now is similar in all respects to the bank-notes of 500 denomination in
Mahatma Gandhi Series-2005 issued earlier, except for the new symbol.

RBI Study sought Cap on Borrowings by Non-banking Finance Companies from Banks

Reserve Bank of India (RBI) raised red flags over the high dependability of non-banking finance companies (NBFCs) on the banking system because the apex bank feels that the higher dependence would mean systemic vulnerability in the context that NBFCs are involved in higher risk activities vis-à-vis the banking system.

The higher borrowings of NBFCs from the banking system tend to raise concerns about their liquidity position. More so, if such reliance happens to increase further.

The banking system’s exposure to NBFCs-D (deposit taking) was observed to have considerably increased over the years. The concerns to be further accentuated in case the banks’ own liquidity position becomes tight at the time of crisis or even at crisis like situation.

The consolidated balance sheets of NBFCs (both the categories i.e. deposit taking and non-deposit taking and systemically important companies) revealed that more than 68 per cent of the consolidated balance sheet constitutes borrowings. 30 per cent resources of the total 68% are borrowed from banks and financial institutions as at the end of March 2011.

Borrowings by way of debentures issued by the NBFCs constituted around 33 per cent and of which a sizeable portion is subscribed by the banking system.

Non-banking finance companies (NBFCs)
NBFCs do not have any exposure limit on their capital market related activities unlike the banking system. Moreover compared with regulation of banking sector, NBFCs in general, are less stringently regulated as pointed out by various Committees and Working Groups.

The total size of the balance sheet of NBFCs-ND-SI (non-deposit taking and systematically important) reached to Rs 730366 crore as at the end of March 2011, from Rs 170957crore as at the end of March 2005 growing more than four fold.

The NBFCs-D which is a better regulated segment as compared to NBFC-ND-SI makes up to just around 14 per cent of the latter. The systemically important non-deposit taking NBFCs have grown faster by nearly 7 fold as at the end of March 2011 when compared with the size of deposit taking NBFCs.

As NBFC-ND-SI companies are not permitted to raise public deposits, borrowings constitute the major component of their liabilities at around 74 per cent by end of March 2005, coming down to around 65 per cent by end-March 2009 on account of the global financial crisis, and thereafter rose to 69 per cent by end-March 2011.

RBI Study
According to a RBI study, non-deposit taking NBFCs is likely to lead to more systemic risks, owing to their reliance on banks for funding needs. The study discouraged NBFCs from raising public deposits, these become non-deposit taking, while increasingly substituting public deposits with borrowings from the banking system.

Non-banking financial companies heavily depend on banks for meeting their funding needs, as many of these are not allowed to raise deposits. However, by borrowing through banks, these indirectly use public deposits, on a much larger scale than by raising deposits on their own.

The study mentioned that due to high inter-connectedness, the vulnerability of the financial system may increase due to high inter-dependability.

Apart from suggesting a cap on the borrowing limit of ND-NBFCs from banks, the working paper also suggested NBFCs should diversify their sources of funds.

RBI hints decline in policy rates
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
 Reserve Bank Governor D. Subbarao has indicated that the central bank could reverse the tight monetary stance
adopted by it since March 2010 to tame inflation. The statement was made in the wake of concern over the
declining economic growth.




RBI prohibits Mobile network operators from offering mobile
wallet facility
The RBI asserted that it will not permit mobile network operators to offer cash-out or mobile wallet service.
Why RBI has asserted this?
 As per RBI, mobile wallet is basically an e-money product and therefore permitting mobile network operators
provide this facility may bypass banking regulations.
 However, RBI allows transactions if mobile network operators operate their services as business correspondents
of banks.
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
 RBI is concerned because of security issues related to the quality of flow, Anti-Money Laundering rules and Know
Your Customer rules.
What is Mobile Wallet?
 Mobile wallet which is also abbreviated as M-Wallet, is a an electronic account that is linked to a person’s mobile
phone in which money can be electronically deposited and the same can be used as cash.
Utility: Internationally, M–Wallets are used to pay for goods at stores, pay for public transportation, make donations
and pay bills.