Mobile phone banking is a new revolution in banking system around the world. The mobile banking has several advantages; it is possible by you to do internet banking, online shopping, and bills payment, or transfer of the amount to another account in a secure manner. With the advent of mobile phone banking, mobile phones are gradually replacing your wallets, Credit Cards, Debit cards etc. As you can do banking at any place using your mobile phone buttons.
Advantages of Mobile Phone banking
The customers having registered for mobile phone banking will enjoy facilities of balance enquiry, last few transactions, cheque paid status, intra-bank fund transfers, (channelized through NEFT), to book air ticket, movie tickets etc., using their mobile phone just like internet banking. The greatest advantage of mobile phone banking is that it allows the sender to send money to the mobile number of the beneficiary just with the mobile number and MMID (Mobile Money Identifier) of the beneficiary. Here, the beneficiary does not disclose his/her account number and other financial critical details to the sender. The account details of the beneficiary will therefore, remain confidential and out of reach of to the remitter.
The latest development in Great Britain is that even money can be withdrawn from ATM, with the aid of their mobile phones. The Royal Bank of Scotland has introduced a new system, which facilitates their customers to withdraw cash up to GBP 100 from ATM, using their mobile phones. However, the said facility of cash withdrawal from ATM through Mobile phone is yet to be introduced in India.
Parties to mobile banking system
For mobile phone banking transactions involves following parties.
- Remitter (Sender)
- Beneficiary (Receiver)
- Remitting Bank
- Receiving Bank
- NPCI-National Financial Switch.(The facilitator)
The National Payments Corporation of India (NPCI) is the facilitator of inter-bank mobile payment service (IMPS).
Requirements to become registered remitter under mobile banking
- KYC and AML formalities, as in the case of account opening, to be complied with.
- Remitter shall have GPRs enabled mobile phones.
- The remitter is required to register mobile number for mobile banking facility with his/her bank. Upon registration, he/she should generate Mobile Money identifier (MMID), which is a 7 digit number.
- Bank would provide MPIN (Mobile Banking PIN) to the remitter (its customer), which is a secrete-password of 4 digit number, to make payment.
Beneficiary also needs to register at his bank
- No need to register for mobile banking.
- Mobile number (of beneficiary) should be linked to the account in beneficiary’s Bank.
- He/she has to collect Mobile Money identifier (MMID) from his/her bank.
Procedure to send money
The procedure is similar to internet banking. Customer logs in to his/her bank and select option for Funds Transfer-“IMPS”, enters his/her account number to be debited, beneficiary’s nick name, amount, creditors detail etc.,(depending upon the software of the remitting bank) and executes the transaction. The remitter gets the confirmation of transaction done by way of SMS from his bank. The beneficiary gets the confirmation of credit to the account through SMS from his/her bank.
Limit for transferring money under mobile banking
The customer has to do transaction through mobile banking only to the extent of daily cap and monthly cap fixed by the bank.
Timing to transfer the funds
The facility of interbank mobile payment service (IMPS) is the round the clock payment system (24 hours payment system) available in almost all the public sectors and private sector banks. The following banks are having IMPS facilities.
The banks which have Mobile Banking facilities
Public Sector Banks: Andhra Bank, Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharastra, Canara Bank, Central Bank of Inda, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of commerce, Punjab National Bank, Syndicate Bank, Union Bank of India, United India Bank, UCO Bank, Vijaya Bank. State Bank of Bikaner& Jaipur, State Bank of Hyderabad, State Bank of India, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore
Private Sector,Co-operative and Foreign Banks: Axis Bank, AP Mahesh Bank,HDFC Bank, ICICI Bank, IDBI Bank, Development Credit Bank, Lakshmi Vilas Bank, Dhanalaksmi Bank, Karnataka Bank, Indusind Bank, South Indian Bank, Kotak Mahindra Bank, Federal Bank, Catholic Syrian Bank, Karur Vysya bank, Tamilnadu Mercantile Bank, Yes Bank,Jammu & Kashmir Bank, Nainital Bank,Domvili Nagari sahakari Bank, Yes Bank, Bassein Co-op Bank, Cosmos Co-op bank, Punjab Maharastra co-op Bank, Thane Janatata co-op Bank, North Kanara GSB Co-op Bank, Citi Bank, HSBC Bank, BNP Paribas