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The Telecom Regulatory Authority of India (Trai) on Wednesday fixed the ceiling for mobile banking ttransactions at Rs 1.50 for a session effective January 1.
According to Trai, unstructured supplementary service data or USSD, the platform used for banking on mobiles, is a ubiquitous, inexpensive, secure and convenient channel. “The framework is to encourage financial inclusion. We want mobile banking to be extended to the unbanked people, especially in the rural areas,” said Chairman Rahul Khullar.
According to the Census 2011, only 54.4 per cent of rural households had access to banking services.
USSD offers a common gateway to customers of all banks even on the cheaper handsets, the Reserve Bank of India (RBI) had said in October last year.
In its consultation paper, Trai said many stakeholders have asked for a ceiling on USSD-based mobile banking. The current rate of Rs 3 an SMS is hindering its use among the poorer sections, it added. Besides, the maximum number of stages for completion of a transaction has been increased to five from two, Trai added.
However, RBI data show transactions grew 29 per cent to 7,169,429 in September from 5,554,327 in January 2013. But these were mostly through smartphone applications, indicating mobile banking is still restricted to cities.
Through USSD, users would be able to perform deposit or withdraw cash, check balance and transfer money. An inter-ministerial group had earlier suggested mobile-linked no-frills account..
Pesky calls
It has given banks till mid-December to check unsolicited commercial calls and SMSes. Insurers have asked four-six weeks for compliance, Khullar said. It has warned their connections wouold be cut if such calls continued after the deadline.
