RBI says, mobile banking to get popular with customers

In October 2008 the Reserve Bank of India had given permission to 18 banks including SBI, ICICI Bank, Bank of India, HDFC Bank, Axis Bank and Union Bank of India, among others to offer mobile banking to their customers in the country. According to apex bank reports after two years the average number of monthly intra-bank transactions has remained extremely low at just 4 lakh among all 18 banks.

Speaking in a banking summit, organized by Indian Bankers’ Association (IBA) and FICCI, KC Chakrabarty said the mobile banking still have to pick up with customers, as most of them are wary of mobile banking.


Chakrabarty said, “As on date, only four lakh intra-bank mobile transactions are happening on an average every month.” He informed out of the four lakh transactions carried out through mobile banking every month, three lakh is done by one bank. He further said in some banks average transactions via mobile banking is as low as 2 per month.

As industry expert informed that mostly small ticket transactions such as postpaid bill payment, credit card bill payment and prepaid mobile refill are done through mobile banking. An anonymous official told, “The average ticket size of such transactions is Rs 230-250.”

Chakrabarty said, “The average cost of banking has not come down and, hence, it is a chicken and egg situation where we can’t get volumes till cost comes down and cost will not come down till volumes are achieved.” AP Hota, chief executive officer of National Payment Corporation of India (NPCI), told the national payment gateway provider is doing pilot project on inter bank mobile banking platform with banks. Hota said, “We are doing the pilot with four banks, namely SBI, ICICI Bank, Bank of India and Union Bank of India. Once three more banks — Axis Bank, HDFC Bank and Yes Bank — get RBI nod, we will launch this platform in October officially.”