How the mobile phone can power banking?

The ticket size of Rs 10,000 per day is somewhat better than the original cap of Rs 2,500 and transaction frequency limits. Individual banks can now set their own limits as per their risk appetite.

Multiple PIN numbers to be remembered for each delivery channel (product) are an obstacle to adoption. As it is, everyone has to remember a plethora of numbers, be their phone, PIN, PAN short codes, passwords, user ids for mobile, credit and debit cards, internet and telephone banking, internet mail, commerce and social networking, ATM, etc. Some banks do have the same PIN for internet and telephone banking. This is a good start. It is, therefore, imperative to have a minimum number of PIN numbers (if not just one) for an account holder without prejudicing security.

The use of the mobile phone for bringing about much-needed (and talked about) financial inclusion is a critical social need with good economics for all stakeholders. Nearly half of the rural and farmer households have no formal access to credit or financial services. It is these missing markets that banks want to bring under their fold. It is clear that banks by themselves can't roll out such services across the country.

Mobile banking is certainly going to be the next wave of banking, however there are certain hurdles which needs to overcome at least from the Indian perspective.

Firstly, cheaper GRPS plan and availability of GPRS service from the network providers across all geographies whether Urban or Rural.

Secondly, Guidelines which needs to be put by the RBI, where the threshold of transaction can be limited.

the next important factor which might the take the mobile banking to the next level would be making micro payments through mobile, where small amounts can be transferred through mobile phones from ones bank account to any other bank account, otherwise it does not make any sense in the future,

Other services like SMS based mobile alerts and other service will remain unexcited in the coming days for customers.

The registration process needs to be made simpler and on par with other channels. While one can initiate registration by ATM, mobile or telephone, its fulfillment can be done by the very means that other secure channels employ currently, rather than requiring physical presence. The absence of a simple registration process will grossly handicap the adoption of m-banking without adding to safety and security.