Mobile banking is a facility that enables customers to initiate and/or perform banking tasks on their smartphones. This is provided by most of the banks in India and abroad. Customers can use mobile banking to view their account balance, make instant fund transfer and pay bills, etc.
Some banks such as SBI, ICICI Bank, HDFC Bank, etc. have incorporated services like loan approval and linking of insurance policy in their mobile banking apps apart from normal financial transactions.
Types of Mobile Banking Services
Mobile banking is one step closer to creating a completely digitalized environment. It lessens paperwork and shrinks waiting time which is otherwise wasted in long queues. Banks provide mobile banking services to their clients in the different ways listed here:
- Mobile banking over mobile applications (for smartphone; SBI Yono and iMobile by ICICI Bank, etc.)
- Mobile banking over SMS (also known as SMS banking)
- Mobile banking over Unstructured Supplementary Service Data (USSD)
Mobile Banking App
The mobile banking application is very user-friendly and convenient to use. This gives customers the freedom to take benefit of baking services using their mobile phone. There are several mobile banking applications wherein an account holder can have mobile-based conversations with the bank representative in case of any query or doubts.
Read more about mobile banking apps in India
What services can be availed using Mobile Banking
Mobile banking is useful to customers in the following ways:
- Access to Account Information
With mobile banking, account holders can access their account details and funds in their savings account anytime and anywhere. This helps in better management of funds. One can check the following services:
- View account balance (balance enquiry)
- Transaction history
- E-statement of account
- Loan statements
- Card statements
- Financial Transactions
Making payments and transferring money from one account to another is the most basic banking activity. Therefore, it only makes that these are the most useful and in-demand mobile banking services. You can transfer funds to anyone by adding them as beneficiaries or simply via Unified Payments Interface or UPI. You can perform the following services via mobile banking:
- Bank to bank transfers
- Transfer of funds to self
- Payments to third parties (rent payments, bill payments, etc.)
- Giving standing instructions for periodic payments
- Payments via NEFT/IMPS/RTGS/UPI
Following investments can be performed via mobile banking:
- Opening fixed/recurring deposit
- Mutual fund investments
- Portfolio management services (e.g. – SBI Capital Securities)
- Other Services
Apart from the account summary, bill payments, fund transfers and investments, there are other services that a customer requires for smooth banking experience. Also, there may be times when you have some grievances and due to lack of time, are not able to address. For such services, you can always resort to your bank’s mobile banking and find solutions to your complaints or queries. These services include:
- ATM locators
- Branch locators
- Lodging complaint/tracking applications
- Ordering a new cheque book
- Cancelling/stopping an issued cheque
Mobile Banking Registration
Banking apps allow the users to analyse their income and pattern of expenditure on a daily, monthly, or annual basis. With each passing year, the number of customers switching to mobile banking is increasing in order to stay up to date about their banking account. This change in the structure of banking would be the initial stages of a new banking world in the future. Thus, it becomes of importance to be aware of the mobile banking registration.
How to Register for Mobile Banking
The core procedure of registration, as mentioned above, varies among the financial providers. But, some of the common steps involved in mobile banking registration are as follows:
Step 1: Some providers demand a duly-filled registration form from the customers.
Step 2: You may need to provide the financial company with your identity proof along with the registration form.
Step 3: You need to download and install the mobile banking app of your bank/financial provider based on your handset.
Step 4: Some financial providers will allow you to activate your mobile application with a Personal Identification Number (PIN), while some banks will voluntarily provide you with an MPIN and SMS.
Step 5: You need to enter the PIN every time you wish to log in to your mobile banking account.
Step 6: Additionally, after the activation, you would need to enter your net banking ID and password in order to access your banking account.
Every bank or financial provider has their unique approach to provide security to your money and your account. Some security approaches include grid-based authentication, OTP, etc. among many others. You need to make sure that you use the same mobile number for mobile banking registration as the one that is registered with your bank account. It is always advised not to share any of the security details like PIN and passwords with anybody to maintain security from your end.
How to Update Mobile Banking Password
The process to update mobile banking password may differ from bank to bank. Below-mentioned is the standard process to update mobile banking password:
- Open mobile banking application of your bank.
- Click on ‘Forgot Password’.
- In the next step, enter your user/customer ID.
- Then you need to enter the account details such as account number, linked debit card, and PIN of the debit card. (In many cases, the bank may not ask for these details)
- Now, you need to proceed further and enter a new password twice.
- Once you enter the new password, your mobile banking app will be updated with the new password that you have created.
How to Transfer Funds using Mobile Banking
To transfer funds through mobile banking, banks offer their customers three ways:
- NEFT – It may take up to 30 minutes for fund transfer
- RTGS – For transactions above Rs. 2 Lakh
- IMPS – For transactions up to Rs. 5 Lakh using mobile
How to Use Tap and Pay for Making Payments using Mobile Banking
Tap and Pay is a contactless payment feature that allows users to make payments just by tapping their chip card or mobile phone to execute a transaction. If your debit card or credit card is activated for contactless payments, you can normally make the payment by just tapping your card against the POS machine. When you use the Tap and Pay facility, you can use your smartphone to make the payment through the virtual card using netbanking instead of the card. This feature adds a safety net to your debit or credit card as it cannot be used for skimming or any fraudulent activity using your smartphone’s Tap and Pay.
Please note that Tap and Pay service through mobile will only work if NFC is switched on your phone. Also, the merchant where you are using this service to pay should also have NFC-enabled device.
To start using Tap and Pay, an individual must set up his/her mobile phone for this feature beforehand. The below-mentioned process explains how to access this feature.
- To access this service, users need to download their respective mobile banking app.
- Click on Tap and Pay icon if given in your mobile banking app and add a card from the list of cards in your account.
- Upon adding the card, a virtual card will be created which can be used for quick NFC payments.
- Now, while making the payment through Tap and Pay, you need to open your mobile banking app, click on Tap and Pay service, hold your phone near the merchant terminal and your payment will be done.
Tap and Pay service may not be available on your bank’s mobile banking app. However, a few payment apps allow you to make payments using these contactless cards such as Samsung Pay, Google Pay, etc.
Advantages of Mobile Banking Services
- Decreased infrastructure costs: The need to develop more physical branches for the bank reduces with the increase in the use of mobile banking services. The overhead expense also reduces, as the customer does not have to go to the bank often. The transaction can be carried out via mobile banking apps.
- Efficient utilization of experts and human capital:The limited pool of banking can be centralized by the banks and one can avail the service of experts irrespective of the location. Therefore, banks can have maximum utilization of the human capital whereas, for account holders, it provides greater access to experts and banking services.
- Documents sharing and assistance with other digital banking service:The bank representative can have a real-time view, document review with the mobile banking app. Mobile banking enables the document sharing and screen sharing of the customer’s mobile device. Hence, the document review can be done from anywhere with a mobile banking app to carry out a complicated transaction.
For Account Holders
- Enhanced security over telephone banking: As nowadays, mobile phones include fingerprint scanners and face recognition, etc., the bank can easily ensure that the customer is an actual customer or not with the help of biometric data. This provides more data security rather than using simple telephone banking passwords. Therefore, chances of fraud are less.
- Increase in accessibility to underserved customer segments:With the mobile banking app facility, customers living in a rural area or far from the branch location can easily access all major banking services from the comfort of their homes. Mobile banking also provides individuals with a facility to communicate through sign language to get connected with an interpreter over live video for easier access to banking services.
Limitations of Mobile Banking Services
- Internet phishing scams: Unsafe use of internet and mobile banking can lead to internet phishing scams. The details of the account are at risk if you store your password and other banking information on your phone.
- Technical knowledge and issues:To operate and access mobile banking, one must know how to operate mobile banking and its services. Bugs may occur at the time of making transactions and availing services from mobile banking which might cause issues while operating mobile banking.
Major Banks Providing Mobile Banking Services
Mobile Banking services provided by banks:
Tips for Safe Mobile Banking
Mobile banking, either by mobile banking apps, internet banking, USSD or SMS, is protected. If you use the bank’s website or mobile app to transfer funds, etc, there are protections like firewalls and SSL encryption that make sure your data is safe and cannot be used by anyone else.
That being said, there are some measures that you must take when doing mobile banking or online banking. These are:
- Use a safe network connection: It is important that you do not use public Wi-Fi and/or someone else’s device for online banking. If you have to use a public network, set up a VPN software to go ahead.
- Licensed anti-virus: Make sure you have anti-virus software installed in your device for an added layer of protection. Also, this should be a licensed software for which you will receive a key when you buy it. Without this key, nobody can make changes in this software. This provides full-proof protection.
- Subscribe for push message notification: Doing this ensures that you are always informed about any transaction that takes place to/from your account. Also, if there are any unsuccessful login attempts to your internet banking account, your bank will send you a notification. In such cases, you can contact your bank and get your account secured.
- Avoid signing in via a third-party website or promotional emails: Never click on URLs received in an SMS or promotional email. Also, avoid using third-party websites to sign in to your account at all costs. This can be extremely harmful and can place a big dent in the security of your accounts.
Q. What is the full form of USSD?
Ans. The full form of USSD is Unstructured Supplementary Service Data.
Q. What is *99#?
Ans. *99# is a USSD-based channel for basic banking services like balance enquiry, fund transfer, and mini statement, etc. It is launched by NPCI and is supported by all leading banks in India.
Q. Can I transfer funds without downloading a mobile banking app?
Ans. Yes. Most of the banks provide this facility where customers can simply transfer funds by logging into the bank’s official website using their mobile browser.
Q. How to activate mobile banking?
Ans. Get your mobile number linked to your bank account and then request for activation of mobile banking on your registered number. Once your number is registered, dial *99# and follow the steps to get your MPIN. This will be used every time you want to transfer funds via USSD. For banking on mobile apps, install your bank’s app and register on it. You will need to create a User ID and Password. Some apps, like SBI YONO or iMobile allow login using debit card details.
Q. What is the difference between online and mobile banking?
Ans. Online banking doesn’t require users to download any app, whereas, in mobile banking, the users need to perform banking on an app. Online banking can be done on any device with an internet connection.
Q. How can I protect my mobile banking?
- Use strong passwords having special characters in it
- Only use official banking apps
- Do not click on hoax links that you get on your screen and refrain from using mobile banking apps on public Wi-Fi
Q. Is mobile banking free?
Ans. Yes, mobile banking services are free of cost.
Q. What is required for mobile banking?
Ans. To avail mobile banking services of any bank, you need to have a bank account in the respective bank.
Q. What is difference between phone banking and mobile banking?
Ans. Phone banking facility can be used on any phone, whereas, to access mobile banking services you need to have a smartphone.
Q. Is debit card necessary for mobile banking?
Ans. Debit card is not necessary to access mobile banking services, though, if you want to make any transactions via mobile banking then you would need your debit card.
Q. Does bank charge for mobile banking?
Ans. Banks do not charge for mobile banking.
Q. What is cardless cash withdrawal in mobile banking?
Ans. Cardless cash withdrawal is a way to withdraw cash from ATMs via UPI apps without using your debit or credit card. To know more about cardless cash withdrawal, click here.