A mobile phone is no longer a simple device to make calls. It’s become the hub for all your activities, from emailing and browsing to paying bills and transferring money. Banks may have been the first to dip their feet into this technological pool, but telecom companies have begun to catch up. The RBI’s step to remove the 50,000 cap that it had imposed earlier on daily mobile transactions has also provided the much-needed boost to mobile banking.
How does mobile banking work?
Mobile banking allows you to conduct financial transactions on your phone just as you would at a bank branch or through Net banking. Banks are now evolving this facility as they launch innovative products.
For instance, IndusInd Bank’s cash-to-mobile service enables customers to transfer money to anybody, including those who do not have a bank account. A bank customer can download the bank’s app on his phone and then put in the phone number of the person to whom he wants to send the money, along with the transaction amount. The bank will send a message to the remitter and the beneficiary along with different PINs to each. The remitter will have to message his PIN to the beneficiary, who can then use both PINs and his mobile number to withdraw cash from an IndusInd Bank ATM. The service is free but operator charges will apply. Also, the sender will need a Java-enabled handset.
Airtel Money, on the other hand, can be used on any mobile phone and you can register for it by dialling *404# or at an authorised Airtel Money retailer. There are two types of accounts. The first one is an express account , wherein you can load 10,000 and use this to pay utility bills or for booking rail/flight tickets on travel portals.
The upgraded version is called a power account, which can be loaded up to 50,000. This can be done through Net banking or an Airtel Money retailer. Citibank too has started a mobile banking service through its Citibank Cash-to-Mobile Receivables Solution and is aimed at corporate customers. It enables them to receive funds from retailers or end-customers. The advantage is that the money is transferred instantly through IMPS (Interbank Mobile Payment Service), which reduces the cost of transaction.
How to access the wallet in your phone
To register for mobile banking services, you will need… An account with the concerned bank or telecom company. You should be registered for Net banking in case of a bank. A Java-enabled handset for mobile banking, but an ordinary phone will do for Airtel Money. An active GPRS connection in case of mobile banking so that you can access the Net. To download the mobile banking application.
How to transfer funds
Log in to the bank’s app menu and input the mobile phone number or bank account number of the beneficiary. Message the PIN you receive from the bank to the beneficiary who will also receive a secret number. He will have to log in both PINs at the ATM to withdraw the money. If the funds are being transferred to a bank account, it will take about four working days.