Sri Lanka's Central Bank has drafted guidelines for mobile phone payment systems and called for public comments, according to a notice on its website.
Mobile payments will be allowed through accounts in licensed banks and registered finance companies as well as Custodian Account Based Systems operated by non-bank service providers.
Service providers can open 'e-money' accounts for customers and issue e-money by accepting physical money, the guidelines said.
It called for public comments on or before October 18, 2010 to be sent to the Director Payments and Settlements at psd@cbsl.lk
The Central Bank said the guidelines are issued with the aim of promoting safety and effectiveness of mobile payment schemes.
The Customer Account Based System through banks is based on the customer accounts maintained by financial institutions from which the service can only be offered to account holders.
Under this system, account holders are able to operate their own accounts via mobile phones to debit or credit their own accounts or credit accounts of third parties within the same financial institution or in another bank.
Two types of facilities are offered, a 'basic level' in which fund transfers are not allowed and only information can be accessed, and a 'standard level' where actual payments can be done.
The Custodian Account Based System to be offered by celcos allows them to open e-money accounts for customers and issue e-money by accepting physical money from customers.
Such non-bank service providers must operate custodian accounts with banks in which they are required to deposit all funds collected from customers.
Mobile payment services are to be allowed only in Sri Lanka rupees and only for domestic transactions.
All foreign inward remittances to the mobile accounts must be routed through the custodian banks and credited in rupees.
Mobile Payment Service Providers (MPSP) are required to report any suspicious transactions of e-money holders based on the guidelines of the central bank Financial Intelligence Unit.
MPSPs also cannot grant any form of credit to mobile account holders, pay interest or profit on the mobile account balances or anything else that would add to the monetary value of the e-money or issue e-money at a discount
Mobile Payment Service Providers are also required to use strong encryption standards for protecting sensitive and confidential information of the bank and customers while in transit.
They are also required to have security measures to prevent criminal activity while using Near Field Communication (NFC) based mobile payment systems.
Related Info:
Mobile Payments Guidelines - Central Bank of Sri Lanka
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