TRAI issues consultation paper on mobile banking

New Delhi, Oct 28 (IANS) The telecom regulator Thursday floated a discussion paper inviting suggestions on the delivery of basic financial services through mobile phones.

The Telecom Regulatory Aauthority of India has stressed the usefulness of mobiles particularly in rural areas to provide basic financial services to the unbanked and sought suggestions from the tlelecom operators.

The services which can be provided through mobile banking are account opening, cash deposit, cash withdrawal, transfer money to another mobile linked no frills account and balance enquiry.

A significant proportion of the country’s population does not have access to basic financial services especially in rural and remote areas.

The national sample survey data reveals that 51.4 percent of nearly 89.3 million farmer households do not have access to any credit either from institutional or non institutional sources.

An inter-ministerial group (IMG), constituted last year by the cabinet secretariat, decided on a framework for delivery of financial services using mobiles in April this year.

The framework envisages sharing of the elements including an account mapper.

An account mapper is a device which will have linkages between unique identity number (UID No), mobile number and the mobile linked no-frills account details. Given a UID or mobile number, it can provide mobile linked no-frills account number.

TRAI has issued the consultation paper to initiate focussed discussion on all the pertinent issues regarding quality of service parameters to support financial transactions using mobile phones.

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