<h1>Mobile banking regulation requires licensed banks to obtain approval, implement KYC and strong security before offering services.</h1> Only Indian-licensed banks with a physical presence and implemented core banking may offer mobile banking for domestic rupee transactions, subject to prior one-time Reserve Bank approval and board approval. Customer registration requires document-based mandatory physical presence and disclosure of terms. KYC, AML/CFT obligations and STR filing apply. Security mandates include two-factor authentication (for example mPIN with secure storage and end-to-end encryption), application and transport layer encryption, intrusion detection, periodic vulnerability assessments, certified servers and audits. Interoperability, clearing arrangements, transaction limits, complaint redressal and contractual allocation of liabilities are required.