Guidelines on Mobile Banking

What is mobile banking ?

Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.) It enables clients and users to carry out various transactions, which may vary depending on the institution .

The ability to deposit a check, to pay for merchandise, to transfer money to a friend or to find an ATM instantly at the comfort of their home are reasons why people choose to use mobile banking.


Mobile banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions.  It is particularly popular among small to medium-sized enterprises (SMEs)

In addition to this, mobile banking also provides 24*7 access to availability of banking services to the customers.


  1. Banks which are licensed, supervised & have a physical presence in India & have implemented core banking solutions are permitted to offer mobile banking services.
  2. Banks can offer the mobile banking services only to their own customers or holders of debit/credit cards.
  3. Only Indian Rupee based services can be provided.
  4. Banks should have a system of registration before commencing mobile based payment service to a customer.
  5. Mobile based banking can have two levels i.e.
  • First level – in the nature of information like balance enquiry, SMS alerts, & other information providing services.
  • Second level – it involves financial transactions such as fund transfers, making & stopping payments etc.

6. Message formats developed by Mobile Payments Forum of India must be adopted by the banks to ensure inter operability between banks & their mobile payment service providers.

7. The Banks must ensure that the customers having mobile phones of any network operator should be in a position to request for service.

8. Use of mobile banking services for cross border inward and outward transfers is strictly prohibited.

9. The banks must issue a new mobile pin (mPIN) to the users to facilitate the mobile payments .

10. If a customer files a complaint with the bank disputing a transaction, it is the responsibility of the bank providing mobile banking service to address customer grievance.


Thus, in simple words Mobile banking refers to the use of a mobile device to carry out financial transactions such as monitoring account balances, transferring funds between accounts, bill payment and locating an ATM nearby etc.

Accounting & Finance for Banking

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