Introduction

Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a Smartphone or tablet.

Mobile banking is usually available on a 24-hour basis. Some financial institutions have restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted.

Transactions through mobile banking may include obtaining account balances and lists of latest transactions, electronic bill payments, and funds transfers between a customer's or another's accounts.

Some apps also enable copies of statements to be downloaded and sometimes printed at the customer's premises; and some banks charge a fee for mailing hardcopies of bank statements.

The value of mobile banking transactions jumped 46% to Rs.49,029 crore in December from the previous month, according to Reserve Bank of India data.
The value of such transactions surged 82% over the September-December period, the RBI data showed.

Bankers attributed the surge to an increase in the number of corporate customers transacting on their phones, along with the continued growth in retail mobile banking transactions driven by the adoption of smartphones across the country.

Mobile-Banking Services

• Account information:
1. Mini statements and account history.
2. Alerts on account activities.
3. Monitoring term deposits.
4. Access to loan and/or card statements.
5. Insurance policy management.

• Funds transfer:
1. Fund transfers between customer-linked accounts.
2. Fund transfers to other accounts.
3. Bill payments.
4. Credit card payments.

• Investment:
1. Portfolio management.
2. Real-time stock quotes.
3. Personalized alerts and notifications on security prices.

• Support services:
1. Chequebook and card requests.
2. Complaint filing and tracking.
3. ATM location.

Conclusion

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. Mobile banking does not handle transactions involving cash, and a customer needs to visit an ATM or bank branch for cash withdrawals or deposits. Many apps now have a remote deposit option; using the device's camera to digitally transmit cheques to their financial institution.