Even after 2 years of letting banks use mobile banking technology for intrabank transactions, the result is still very low. All the 18 joining banks have produced transactions valued at just Rs 4 lakh combined which is quite a low figure.
Talking about the situation, K C Chakraborty, deputy governor of RBI said that the plan is still in its infancy and the customers have yet to get used to it and become familiar with mobile banking.
Mobile banking services were given to 18 banks by the RBI in 2008. They comprised of SBI, ICICI Bank, Bank of India, HDFC Bank, Axis Bank and Union Bank of India, etc.
Chakrabarty said, “As on date, only four lakh intra-bank mobile transactions are happening on an average every month”.
He said that from the 4 lakh transactions a month, 3 lakh were performed just by one bank while other banks have reported poor transactions as low as 2 per month.
He added, “The average cost of banking has not come down and, hence, it is a chicken and egg situation where we can’t get volumes till cost comes down and the cost will not come down till volumes are achieved”.
AP Hota, CEO of National Payment Corporation of India (NPCI) said that it is testing a pilot project on interbank mobile banking platform. Hota added, “We are doing the pilot with four banks, namely SBI, ICICI Bank, Bank of India and Union Bank of India. Once three more banks – Axis Bank, HDFC Bank and Yes Bank – get RBI nod, we will launch this platform in October officially”.
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