Carry the bank in your mobile

In reply to the question 'Where is your bank?', if I answer 'In my hand.', I am not exaggerating. With your cellphone, you can now make several banking transactions. "Today, there are more than 300 million cellphone users in India. We expect a huge number of them to become mobile banking service users. So, we are focusing on it," says M G Sanghvi, general manager, Dena Bank.

Small start. Many customers have already started using SMS alert facility that sends messages to their cellphones whenever a significant transaction takes place in their bank, credit card or other accounts.

Besides SMS facility, there is interactive demand facility that allows you to get banking information or transact over the phone. You can check account balance, payment of bills, the last three transactions in your account and cheque status as well as give stop payment orders.

Technology. Mainly, three technologies, SMS, GPRS and unstructured supplementary service data (USSD), are used to provide mobile banking services (see It's At Your Fingertips). As these are evolving, more complex transactions are being allowed through cellphones.

An ICICI Bank spokesperson says, "Our bank allows all Internet banking transactions over cellphones. Customers can now transfer funds to ICICI Bank from other bank accounts. Savings, dematerialised, credit card and loan accounts have been brought under this facility. Customers can also pay their utility bills and insurance premium through this facility."

To reach a wider audience, a few players, such as Barclays Hello Money, allow both English and Hindi interfaces.

Service charges. As of now, the service do not cost much as most banks are providing the service free, while some are charging a small fee. Cellular service providers, however, charge for the SMS or the GPRS facility.

Iron locker. The safety issue, however, is still a concern for several customers. Several banks assure that mobile banking is secure since most transactions work on a four-digit mobile banking PIN. Three incorrect PIN entries lock the application. And, if you lose your cellphone, you can contact the customer care centre to block the feature immediately.

"As long as the technology is safe, dissemination of information is confidential. For restricted use, one would not mind using the facility," says Antara Dasgupta, a 25-year-old Mumbai-based lawyer.

Worldview. Globally, m-commerce has taken a big step. In Japan, you can use it instead of plastic money for shopping. Unlike in plastic money, there is no card number, card verification value or expiry date and other details. So the chance of misuse is also less.

Domestic circle. Experts say that mobile  banking has not gained the momentum in India. However, Reliance Communications and HDFC Bank have launched the mPay credit card, where the cellphone number replaces the card number.  It can be used for all transactions that credit card is good for.

HDFC Bank authenticates information with RCom, and the cellphone can be used to initiate and authorise all payments. Also, mPay services can be used for Reliance cellphone and Reliance Energy bill payments. In future, it will be extended to allow the customer to book movie and travel tickets, and make payments at shops.

Also, Airtel has launched Mcheck for bill payments in collaboration with various banks. You can also pay your ICICI Prudential policy premium through it.

Sai Narain C.D.K., general manager (Consumer Transaction Banking & Strategic Initiatives), Standard Chartered Bank, says, "We launched it in 2008. We have an aggressive road map for our mobile banking initiatives. In the next few years, we do see it taking over a significant share of the transactions. There are several approaches and models being tried out in the industry."

Scanner. Since many more players are expected to plunge into this promising revolution, the RBI is expected to issue guidelines for mobile banking and m-commerce next month.

Now that the advanced technologies have simplified your life, you can make more out of your bank. After all, it's only an arm's length away.

It's at Your Fingertips

There are three technologies available in the market for accessing your bank account using your cellphone

SMS

• You can perform a wide range of query-based transactions.
• You need to be a subscriber of the cellular service provider with whom the bank has a tie-up (with SMS facility).
• You need to register cellphone number with the bank to avail the facility.
• To use the facility, type in the specified code for the transaction as a text message and send it to the bank's assigned number. You will receive the response in the form of a text message on your phone within a few seconds.
• This covers most of the basic transactions like balance enquiry, mini statement, cheque status, chequebook request, fixed deposit enquiry, and others. For example, you can type 'bal' and send the SMS to get the available balance in the accounts linked to your customer identification number (a maximum of five accounts). Similarly, type 'txn' to get a mini statement, which will give you information on the last three transactions.
• There is no PIN number. However, you can access information only of your account.

GPRS

GPRS: For this you need a Java-enabled handset and subscription to a GPRS connection.

• Use the GPRS menu of your service provider and download the application provided by the banks. The software can be installed using Bluetooth, data cable or by sending an SMS to the number concerned. You will receive an SMS with the download application link.
• Once the installation is complete, the application icon will appear in the menu. If you  click on the icon the application will connect to the bank server and initiate the process. It will download the necessary information, such as details of bank, credit card, demat and loan accounts.
• You need to create a PIN that will be used for future logins. It ensures only an authorised customer accesses the facility. Do note that after three consecutive wrong inputs of the PIN, the application gets locked.
• To refresh application, press 'Refresh' in the 'Options/Menu' on the main screen. A message will be displayed with a summary of the downloaded/updated items.

USSD

Unstructured Supplementary Service Data

• You need to register with your bank for this facility and be a subscriber of a cellular service provider that the bank has a tie-up with.
• You will need a normal GSM mobile phone and a PIN that the bank will give you. It will also give you the number you need to call for using the USSD facility, which is a no-store-just-forward facility for performing menu-driven transactions. You don't need to download any application.
• You can perform account enquiries and financial transactions by dialling the specific number provided by the bank.
• You will be guided to the mobile-based text menu from which you can choose from a number of options.
• Once you have given the correct PIN, the required transaction is performed on your handset.