The idea of mobile banking in India is not new and rather it is one of the most progressive and promising initiative. However, like all other projects and initiatives of India, even mobile banking is not free from troubles.The present banking and other technology related legal frameworks are not conducive for mobile banking in India. We do not have a well developed e-governance infrastructure in India. Similarly, on the front of e-commerce as well, India is not much successful.
However, the most troublesome legal hurdle is a weak and cyber criminal’s friendly cyber law of India. The information technology act, 2000 (IT Act, 2000) is the sole cyber law of India that does not carry any sort of deterrent effect. While implementing mobile banking in India, sound legal framework is required for banking and cyber law related issues.
There are no limits to the troubles when institutions like national payments corporation of India (NPCI) and unique identification authority of India (UIDAI) join their hands. Both Aadhar project and UIDAI are unconstitutional as they go against the very scheme of Indian constitution. Further, they are also not supported by any legal framework and are executive hegemony by hijacking the constitution.
NPCI has decided to use unconstitutional and illegal UID numbers for allowing customers to do financial transactions using their mobile phone. It may be used to open an account, make a cash deposit or a withdrawal. NPCI would use the UID number along with the customer's thumb impression for offering this service.
Surprisingly, this is proposed immediately after the reserve bank of India (RBI) has asked the banks to consider the report of one of its working group dealing with cyber frauds and cyber crimes. This initiative seems to be going against the core recommendations of that report.
Presently, banks are not performing due diligence as per the requirements of cyber law of India. Let us hope the RBI would make this initiative of NPCI /UIDAI more users friendly and safe.
