Website design By BotEap.comSoon you won’t have to carry your plastic money for payment purposes, as your mobile phone number will act as the credit card number. Recently, the Reserve Bank of India (RBI) in its annual policy statement reported that it was in the process of formulating guidelines for a payment system using mobile phones. RBI is discussing with public and private sector banks, service providers and industry bodies to develop the payment system. RBI said the draft guidelines would be posted on its official website before June 15, 2008.

Website design By BotEap.comIn India, the use of mobile devices is growing rapidly. There are around 250 million mobile phone connections in the country, while the credit card holders are much lower compared to the number of mobile phone users. Therefore, mobile for payments has been considered for quite some time as a progressive step forward.

Website design By BotEap.comAs reported by The Times of India, RBI said in the policy statement “The rapid expansion of this mode of communication and transaction has created a new delivery channel for banks.” In addition, RBI states: “This channel will definitely facilitate small value payments to merchants, utility providers, and low-cost money and likes transfers.”

Website design By BotEap.comThe credit card market is going to see some more progressive changes this year. A joint venture between Life Insurance Corporation of India (LIC) and GE Money is likely to launch its first product in late 2008. As reported by Business Standard, the company is now up for grabs. But we have resolved those issues (conflict of interest). We are currently looking at human resources issues. The two financial giants plan to launch the card at the end of the calendar year.

Website design By BotEap.comOnce the credit card is launched, it will be offered only to LIC customers and policyholders for the first year. GE Money has a 30% stake in the card company, while LIC Housing Finance Company, LIC Mutual Fund and Corporation Bank each have 5% in this company. LIC will own 40 per cent in the company, which is capitalized at about Rs 150 crore. LIC has not yet made a decision on the remaining 15% of the total investment. In another positive development, ABN AMRO with Indian travel portal MakeMyTrip.com recently launched a distinctive co-branded credit card, ‘Go Card’. The card offers special reward benefits and a good variety of travel-related promotions and packages.