Mobile phone banking is a new revolution in banking system around the world. The mobile banking has several advantages; such as you can 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. at any place using your mobile phone buttons.
Process of mobile phone bankingThe customers having registered for mobile phone banking will enjoy facilities of balance inquiry, last few transactions, the 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The latest development in Great Britain is that even money can be withdrawn from ATM, with the aid of their mobile phones.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)
- 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.
- 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.
The procedure is similar to internet banking. Customer logs into his/her bank and select option for Funds Transfer-“IMPS”, enters his/her account number to be debited, beneficiary’s nickname, 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.
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.
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