Indian Telecoms Agree to Mobile Banking
Ten Indian Telecom companies agreed to provide mobile net banking through SMS. Narendra Modi’s government has convinced the Mobile companies to share their infrastructure to make it possible to have basic banking services through cellphones. The services that can be used with cell phones include Fund transfer, balance inquiry in savings account, changing the PIN, mini statement, cheque book request. The services can be accessed with simple text messages using even old model phones without having any access to the internet.
In the last two months, National Payments Corporation of India (NPCI) have received signed pacts with ten telecom companies. The payments gateway is supported by the government in order to make the service possible. The service will operate on Unstructured Supplementary Service Date (USSD) channel for the telecom companies. This interactive text messaging system allows the users to perform even credit and debit card transactions. However, the plan at present seems to limit the USSD to basic banking services like low value bill payments. For every transaction, the user will be charged INR 1.50.
Using the USSD System, the scope of mobile banking transactions from wallet services provided by telecom firms through a separate entity. If the subscriber is under the wallet services, they can perform transactions like prepaid mobile charges, utility bill payments and money transfers.