Facilitating a model like M-PESA in India would require the setting up of a clearing and settlement arrangement for such non-bank operators. Such clearing and settlement arrangements could have systemic implications. 3. Certain customer service issues (viz. Non-availability of funds at the paying outlet, non-delivery/delayed delivery of messages) are associated with the MSP models.
Any model of mobile banking in India should ab initio address customer service and customer protection issues to enhance the confidence level of customers and ensure sustained credibility of the model. 4. Last but not the least, money laundering is a matter of concern in India.