Bank transactions through mobile without internet soon

By November 25th, 2014 AT 12:02 AM

Millions of mobile users will now be able to carry out most banking transactions (like PIN change, funds transfer, payment of low value bills, getting new cheque book, bank passbook request and balance enquiries and many more such simple services) using a basic handset.

ICICI mobile banking

For this, the dealings between a customer and the bank will be possible with a basic handset and without accessing the internet. The Telecom Regulatory Authority of India (TRAI) has been urging the telecom companies to enable bank authorized mobile payment, most of them have not been too willing to co-operate on that issue.

In the mean time, telecom operators like Airtel, Vodafone and Idea have already introduced mobile banking services to pay utility bills, availing recharges, etc and they have been reluctant about rolling out Unstructured Supplementary Service Data (USSD) operations, fearing they will lose out on a sizeable revenue if that happens.

Also Read :  Airtel Money Super Account’ Powered by Axis Bank

However, they are now expected to fall in line, with the payment companies inside the country lobbying with the regulator and the government for allowing them to tap the USSD channel of telcos.

The USSD refers to a simple interactive text messaging system using which a mobile phone user can reach out to his/ her bank for simple banking services. Though USSD is a pretty old technology, it holds great significance for a country like India where internet penetration is low and a greater percentage of people use basic handsets over which they cannot connect to the internet.

Plus, any mobile user will soon be able to able to ‘talk’ to his/ her bank by typing a simple SMS like perhaps *999#.

Also Read : Should Mobile Operators directly compete with Banks? If yes, How?

The telecom companies agreed to share their infrastructure with the state-backed payments gateway, National Payments Corporation of India, rather grudgingly. NPCI features in the Narendra Modi government’s financial inclusion plan prominently.

According to a report, “The Telecommunication tariff (Fifty Sixth Amendment) Order, 2013 states that all telecom operators are ‘obliged’ to provide connectivity to any payment aggregator who has set up a USSD gateway. Therefore, TRAI will ask the telecom operators to comply with it.”

3
Leave a Reply

avatar
Photo and Image Files
 
 
 
2 Comment threads
1 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
3 Comment authors
MAYANK GOYALGaneshKunal Recent comment authors
newest oldest most voted
Ganesh
Ganesh

Everything sounds fine. But what about security? How can they secure insecure channels like USSD?

Kunal
Kunal

MTNL has this since a long time using *999#

MAYANK GOYAL
MAYANK GOYAL

Its *99# for MTNL & BSNL

Recent Posts

Google Stadia Game Streaming Platform Introduced, Will Launch Later in 2019

Google launched Stadia, the company’s own gaming streaming platform at the Game Developers Conference (GDC) which was held in San...

Apple Refreshes iMac Lineup in India With Two New Devices, Prices Start at Rs 1,19,900

Apple on Tuesday updated its iMac line-up with two new devices after a gap of nearly two years that come...

Poco F1 Gets Game Turbo Mode Along With Rs 2,000 Temporary Discount on 128GB Storage Variant

Xiaomi sub-brand Poco launched its first smartphone aka Poco F1 last year. The Poco F1 has received a massive response...