CHAPTER 1: INTRODUCTION

What is mobile banking?

Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet,
etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell
phone or as complex as a client paying bills or sending money abroad. Advantages to mobile
banking include the ability to bank anywhere and at any time. Disadvantages include security
concerns and a limited range of capabilities when compared to banking in person or on a
computer.

Understanding Mobile Banking

Mobile banking is very convenient in today’s digital age with many banks offering impressive
apps. The ability to deposit a check, to pay for merchandise, to transfer money to a friend or to
find an ATM instantly are reasons why people choose to use mobile banking. However,
establishing a secure connection before logging into a mobile banking app is important or else a
client might risk personal information being compromised. 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. Unlike the related internet
banking it uses software, usually called an app, provided by the financial institution for the
purpose. 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. Mobile banking is dependent on the availability of an internet or
data connection to the mobile device.

Transactions through mobile banking depend on the features of the mobile banking app provided
and typically includes obtaining account balances and lists of latest transactions, electronic bill
payments, remote check deposits, P2P 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. Using a mobile banking app increases ease of use, speed,
flexibility and also improves security because it integrates with the user built-in mobile device
security mechanisms
Definition of mobile banking
In using the. term 'electronic banking'the authors refer to a definition that explains it as the
provision. of information and services by a bank to its customers via electronic wired or wireless.
channels, for example, the internet, telephone, mobile phone, or interactive television.

History of Mobile banking

redirection to a mobile banking specific website or providing a menu of mobile
banking options for the user to choose from. Mobile banking was first introduced in India
in 2002. Transactions were also carried out via SMS. Almost all banking transactions, such as
checking account statements, paying credit bills, utility bills, and transferring funds, can now be
completed using a computer, laptop, or smartphone. Almost all banks have a mobile phone
application in 2018. It allows customers to transfer funds by simply downloading the mobile
banking app to their Android or smartphone, after which they can begin online banking
transactions at their leisure. In the year 2008, ICICI Bank was the first bank in India to launch
mobile banking. Almost every bank has since followed suit.
The earliest mobile banking services used SMS, a service known as SMS banking. With the
introduction of smart phones with WAP support enabling the use of the mobile web in 1999, the
first European banks started to offer mobile banking on this platform to their customers.

Mobile banking before 2010 was most often performed via SMS or the mobile web. Apple's
initial success with iPhone and the rapid growth of phones based on Google's Android (operating
system) have led to increasing use of special mobile apps, downloaded to the mobile device.
With that said, advancements in web technologies such as HTML5, CSS3 and JavaScript have
seen more banks launching mobile web based services to complement native applications. These
applications are consisted of a web application module in JSP such as J2EE and functions of
another module J2ME.

A recent study (May 2012) by Mapa Research suggests that over a third of banks have mobile
device detection upon visiting the banks' main website. A number of things can happen on
mobile detection such as redirecting to an app store,
Transactions through mobile banking depend on the features of the mobile banking app provided
and typically includes obtaining account balances and lists of latest transactions, electronic bill
payments, remote check deposits, P2P 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. Using a mobile banking app increases ease of use, speed,
flexibility and also improves security because it integrates with the user built-in mobile device
security mechanisms
From the bank's point of view, 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
FEATURES OF MOBILE BANKING:

1. Up-to-date account activity

The most fundamental feature your financial institution’s online banking or mobile app
will offer is up-to-date account activity. Easily keep track of your finances by regularly
reviewing this activity. Key items to take note of include:

Transactions: These make up your account activity and include money coming into your
account (i.e. direct and check deposits), and money going out of your account (i.e. debit
card payments and ATM cash withdrawals).
Each transaction will include a date, description and amount. Make sure you recognize
each item to ensure there aren’t any unknown charges on your account.
Pending/hold: You may also see transactions listed as pending on your account, which
means they aren’t complete or fully posted to your account yet.
Balance: In your account activity you should also be able to view a running count of your
balance after each deposit or withdrawal, so you are aware of exactly how much money is
in your account.
Search: It’s also important for your account activity to include the ability to search so you
can easily view transactions from a certain date range, to a certain biller, find a check
image, etc.

2. Check account balance

Want to know how to check your current bank account balance online? Online and
mobile banking give you quick access to your account balances anywhere, anytime. This
gives you the advantage of knowing how much you have available before you make that
next purchase. An extra perk is if your financial institution has a feature that allows you
to view your balance without logging in to your account—saving you that extra step.

An important distinction to note on your account balance is your current and available
balances. For example, if you’ve deposited a check for $200 but only $100 is available
while the check finishes processing, your current balance will reflect the full $200 but
your available balance will only account for the $100. This is important to take note of,
especially if you have a low balance on your account, to ensure you aren’t spending more
than the available balance in your account.

3. Account-to-account transfer
If you have multiple accounts at your financial institution (i.e. a checking and a savings
account), it’s important to be able to easily transfer money as needed to build up savings
or cover spending. Rather than visiting your bank in-person and filling out a slip, users
who bank online or from their mobile banking app can instantly transfer funds between
internal accounts with just a few taps on their screen. This is beneficial for those who
actively use their different accounts on a regular basis, or are looking for more flexibility
in their budgeting or savings.

4. Person-to-person transfer

With a person-to-person (P2P) transfer, you are able to send money quickly
and easily to friends and family straight from your phone. Popular mobile
payment apps include PayPal and Venmo. Zelle® is also a popular option
and has the added convenience of being available directly in some financial
institution’s online banking and mobile apps.

5. Bank-to-bank transfer

A bank-to-bank transfer allows you to transfer money between your different external
accounts if you’re with more than one bank. This comes in handy if you have accounts
for different purposes or are in the process of switching financial institutions, especially if
you moved and aren’t near a physical location of one of the banks anymore. Make sure to
take note of the amount of time for a bank-to-bank transfer, as these typically take more
time than the instantaneous account-to-account transfer between your accounts at one
place.

6. Mobile deposit

If you’ve ever sat on a check because you didn’t have time to make it to the bank before
it closed, mobile deposit is the answer. This feature allows you to scan or take a photo of
your check through your mobile app, and then deposit that balance into your account as if
you’d deposited it in person.

7. Cleared check images

When you pay by check, copies of those checks are available online once the transaction
completes. You can view these images by logging in to your online account, which could
come in handy if you need copies or a reminder on what the payment was for.

8. Online bill pay

Online bill pay helps centralize your bills in one place, so you don’t have to chase down
separate payment accounts every month. You should be able to:
Immediately add and schedule billers to pay
Create one-time, future-dated, and recurring bill payments to meet your needs
Set reminders for upcoming bill due dates
An added perk is the option to receive electronic versions of your billing statements
(eBills) for easier, eco-friendly account management.

9. Account alerts

When life gets busy, you set a reminder. It is crucial that your financial institution offer
account alerts for events like low account balance, daily balance alert, transactions and
more. Your financial institution should also provide the option to receive convenient
account alerts by e-mail or text message.

10. Card control services

To help avoid the stresses of a misplaced or stolen debit card, card control services give
you the power to turn your card off until the card is found or replaced. Check to see if
your financial institution additionally offers the ability to restrict transactions and set
card-specific alerts, putting you fully in control of your card no matter where you are.

11. Fraud alerts

You should be able to feel confident that your money is safe at your financial institution,
and a security feature that can help ease your mind is fraud alerts. These alerts notify you
of potential suspicious activity on your account as it’s happening, so you always know
what’s going on with your account.

12. Touch and Face ID

To help keep your mobile banking experience more secure, many banks offer Touch and
Face ID authentication using fingerprint or facial recognition. These safeguards not only
provide added protection, but also make it easier for you to sign into your account
quickly without having to re-enter your password each time.

13. ATM & bank locator

Make sure your financial institution’s mobile app offers the ability to locate the nearest
office location or in-network ATM, so you’re able to avoid fees whenever possible when
out and about around town, or traveling.

14. View account statements online

Go green with eco-friendly, paperless account statements you can view online. Getting
your statements online is faster and more secure than standard mail, and you don’t have
to worry about the clutter of receiving paper statements each month. Having access to
your bank statements online also makes it easier to make copies for things like taking out
loans, proof of residency, rental applications, etc.

15. Self-service options

Take note of whether your financial institution includes features in their online banking
experience that takes convenience to another level. Tasks that used to require a phone call
or bank visit can be done online or from your phone, such as: reordering checks, stopping
payments, ordering a personalized debit card and updating contact details (phone number,
e-mail, etc.).

The Importance of Mobile Banking

Mobile banking allows consumers to be able to access banking services from anywhere.
Businesses and business owners are now able to save time by making use of mobile
applications to process their payments or even receive funds from clients directly to their
 phone numbers. It is particularly popular among small to medium-sized enterprises
(SMEs).

With mobile technology, banks are able to cut down on operational costs while still
maintaining client satisfaction. The fact that any client of a bank can make use of their
app to request a service, such as opening an account or even the ability to schedule debit
orders or other payments from an application, allows for larger transactional volumes,
eventually driving business growth.

1. Mobile banking is an easy and convenient service for its customer to operate their
banking transactions as per their convenience.

2. It is found that Mobile banking is a developing app for all types online banking
transactions.

3. The bank’s which adopted mobile banking service has developed it as an app with
specialised features.

4. Most of the banks are adopting and implementing mobile based apps for mobile
banking transactions.

Types of Mobile Banking Services

 Banks provide mobile banking services to their clients in the different ways listed here:

Mobile Banking over mobile applications (for smartphones; e.g. SBI Yono and iMobile by ICICI
Bank, etc.)
Mobile Banking over SMS (also known as SMS Banking)
Mobile Banking over Unstructured Supplementary Service Data (USSD)

1.Access to Account Information

Information is power. And thus, knowing your exact bank balance is important. This helps you in
better management of your funds. And thus, this is the primary mobile banking service provided
by any bank. You can check the following:

View account balance (balance enquiry)

Transaction history
e-statement of account
Loan statements
Card statements
e-Passbooks

2.Transactions
Making payments and transferring money from one account to another is the most basic banking
activity. Therefore it only makes sense that these are the most used and in-demand mobile
banking services. You can transfer funds to anyone by adding them as beneficiaries or simply via
Unified Payments Interface or UPI.

Bank to bank transfers

Transfer of funds to self
Payments to third parties (rent payments, bill payment, etc.)
Giving standing instructions for periodic payments
Payments via NEFT/IMPS/RETG/UPI/MMID
3.Investments
Opening fixed deposit/recurring deposits
Mutual fund investments
Portfolio management services (e.g. SBI Capital Securities)

4.Other Services
Apart from the account summary, bill payments, fund transfers and investments, there are other
services that a customer requires for smooth banking experience. Also, there may be times when
you have some grievances and due to lack of time, are not able to address. For such extra
services, you can always resort to your bank’s mobile banking and find solutions to your
complaints or queries. These services include:

ATM locators
Branch locators
Lodging complaint/ tracking applications
Ordering new cheque book
Cancelling/stopping an issued cheque

Mobile Banking over SMS

SMS BankingAlong with mobile apps, most banks offer mobile banking services over SMS.
This service is useful for those who do not have smartphones and/or internet connection.
Customers need to register their mobile number with their bank in order to avail SMS banking.

Services Offered by SMS Banking

Balance Enquiry
Get mini-statement
Transfer of funds to/from self-accounts (e.g. savings A/c to current A/c)
Block ATM card or a credit card
Enquiry for forex rates
Enquiring about current interest rates (e.g. FD rates and savings rates)
These services are carried out by push/pull messages. Push messages mean when the bank
initiates a communication, often reminding about payment or notification about a withdrawal.
OTP or One-Time Password is also a type of push message that falls within the periphery of
mobile banking.

Pull messages are those messages that are initiated by the customer. These can be for account
balance enquiry and for cancelling an issued cheque, etc.

For instance, to check the available balance in their account, they may have to send an SMS in
the format: AVAIL BAL XXXX where XXXX is the last 4 digits of the account number. The
bank replies with an SMS with the current available balance in the account.

Mobile Banking over USSD

USSD Mobile BankingUSSD or Unstructured Supplementary Service Data is a type of
communication via which one can exercise basic banking services. There is no need for a
smartphone or an internet connection for this service. It allows services like balance enquiry and
transfer of funds.

*99# – a USSD based mobile banking service, has been launched by NPCI which is supported in
51 leading banks in India. The following services are offered by *99# USSD payment option:

Balance enquiry
Mini statement
Transfer of funds via
A/c no
Aadhaar
MMID
Change MPIN
Generate OTP
Know MMID (Mobile Money Identifier – a 7-digit unique no. given by the respective bank)
Note: Basic charges of Rs. 0.50 are charged from the customer to carry out USSD transactions.
There is a daily limit of Rs. 5,000 set

ADVANTAGES OF MOBILE BANKING :

 Improved customer experience

When it comes to the banking business, a relati onship with a customer is key. By
maintaining a good, respectf ul, and healthy relati onship with the client you have higher
chances to both keep them and att ract new ones with the help of word of mouth. Due to
being available 24/7, mobile banking is great for those who are not always able to visit
the actual bank during its working hours. With round-the-clock services being introduced,
users can access their accounts whenever they want .

 Time Efficiency
All the operations (e.g. transactions) are managed automatically, so this saves time and
cost for the organization.
 Workload Capacity
Mobile banking eliminates the human factor during the different work operations. Plus it
boosts productivity and quality, causes a lot of issues clients can fix by themselves
through an app.

 Data Storage
As financial institutions use automated systems, it allows storing and processing more
data than with manual analysis.

 Cost Reduction
Reduction concerns a variety of possible expenses: marketing costs, rent, workforce, etc.

MOBILE BANKING DISADVANTAGES:

 Security
Even though banks are trying their best in developing the safest, most secure system, they
usually fail to do so. The researchers state, that 97% of banking apps presented
insufficient protection of the code, 90% of those experienced the leakage of information
to other apps on devices, 83% of solutions using APIs just stored data mindlessly, letting
hackers steal it, and in 80% of products, the encryption methods were not efficient
enough. And since the COVID-19 crisis took over the world, so did the criminals. In the
wake of the global pandemic, hackers tend to perform illegal activities much more often
than before.

 Tech Issues
Limitations of mobile banking may occur because of bugs that occur during the
development and sometimes after the launch of the mobile application. It is important to
 find and fix all the issues in the program with help of testing service, to keep your client
satisfied.

Everything you need to know about mobile application

architecture.

 Extra charges for internet services

One of the mobile banking disadvantages is the presence of extra charges for some of the
bank services (and we’re not talking about commissions) Certain features like insurance
may charge extra fees.

 MOBILE BANKING FEATURES AND BENEFITS

In addition to the value it brings for banks there are lots of benefits of mobile banking to
customers. Let’s proceed to them:

CHALLENGES FACED BY MOBILE BANKING

 Economic Challenges:
The rural population in India is
spread across 600,000 villages, each with a low transaction
value. Profitability can only be achieved by large volumes,
requiring significant initiative from financial institutions.
Unlike the very successful M-PESA of South Africa, whose
model has been very successful due to the lack of alternative
payments in South Africa, India does possess some
infrastructure in the forms of postal payments, reasonable
transport and local governments. Therefore, any mobile
 banking must be inexpensive enough to be attractive for the
end-customer over existing methods.
Regulatory Challenges: Although the RBI is supportive of
mobile banking in India, there are many regulations that are
being put into place:

 Restricted to Financial Institutions:

The guidelines
state that only existing financial institutions and banks are
allowed to offer mobile banking. Although the guidelines
cover Microfinance Institutions (MFIs), significant economies of scale cannot be
achieved by these due to
existing large fixed costs. For a very inexpensive solution, it
would have been more effective to allow non-profit
organizations or evangelical organizations to build their
own MFI without being encumbered by large existing
infrastructure.

 Rupee Transactions:
All transactions must be done only
in India’s national currency, the rupee. While this may not
be a threat in the beginning, this may pose a constraint for
interoperability between Indian mobile payments and the
world. Also, it excludes providers from the lucrative
remittance market in India and limits areas from which
mobile operators can be profitable.

 Existing Account Holders:

The guidelines also state
 that only those having a valid bank account would be
allowed mobile banking. This limits the full potential of
mobile banking to extend micro-credit and bring banking to
the large number of unbanked customers in India.

 Demographic Challenges:
India has 18 official languages
which are spoken across the country. The state governments
also are dictated to correspond in their regional language for
official purposes. Additionally, two-thirds of the population
in India is illiterate, creating difficulties in deployment of
mobile banking solutions. For a pan-Indian mobile banking
solution, this will be cumbersome to overcome.

 Customer awareness:
Due to lack of knowledge and awareness about mobile banking is also a reason for
distrust in mobile banking
services and it is also another reason for risk and security issue in mobile banking
because this is new technology in
banking and financial system so all banking customer are not aware about it and feel risk
to adopt it so it is also a
big challenge in front of mobile banking services in India

 Security issues & privacy:

There is security of mobile banking services is big issue and challenge. In mobile banking for the
security purpose
PIN or PASSWORD is used which may be steal by the attacker or unauthorized user if mobile
device has loss or
steal so user have to aware about it. Customers are use sensitive data and information in mobile
so here risk with
pass of a legitimate application because application services are provided by third party it may
steal our information
and send it to another third party so we have to aware about application used for WAP mobile
banking services and
download a legitimate and authorize application for transaction with mobile banking services.

 Virus & malware attack:

there is also risk with virus and malware attack it may access your account
information such as username, password
and other information like in computer system there is also risk on virus and
malware attack on mobile banking
services some malicious code are written to defect mobile banking like Zeus has
used for attack on SMS banking
and Zeus used for steal mobile transaction authentication such as password and pin
number. So it is also big security
issue and challenge in mobile banking services.

 Wireless network:
All process of mobile banking services is done in wireless mode so there is also a security risk in
mobile banking
services mobile device component contact with cell site and dedicated circuit or microwave for
the communication
services so if there is any weakness in any part of this network then risk of attack is increases so
we have to secure
all these network and network devices for a good security services.

 Risk in SMS mobile banking:

Format of SMS is in plain text. Currently end to end encryption is not available. The only
encryption is available in
base station at transceiver and at the SMS server during transmission time. Due to this there is
risk in SMS banking
such as SMS spoofing attack where attacker can send message on network by manipulating the
user’s number.

 Authentication issue:
In mobile banking there is authentication risk at the login time or when we access our account
through the mobile
system because in mobile banking for the authentication PINS numbers are used but PINS
authentication method is
an old method and many security issues such as password and id theft were by stealing the
password and id
unauthorized access may be possible by getting the password attacker may access our account.
Another risk related to authentication in mobile banking as if mobile has stolen then attacker
may get the password
through the mobile and can access the account by using your id and password.

Different types of mobile banking apps:

1. Kotak-811 & Mobile Banking
In our list of top 10 mobile banking apps in India, Kotak-811 is number one. The prime reason
behind this is you can open a zero-balance savings account with Kotak-811 with an
internationally enabled virtual debit card. The app has an attractive UI with many in-app
features. Recently, Kotak Mahindra Bank has launched the first WhatsApp banking in India as
well.

2. HDFC Bank Mobile Banking

HDFC is considered one of the largest Indian banks. Its mobile banking application allows all
customers to check their account summary, make credit card payments, transfer funds, and pay
utility bills. The application enables customization of the ‘My Menu’ tap on the app where the
most commonly used services are available.
This mobile banking app is available in Hindi as well and features a LITE version that has
compatibility with lower internet speeds. Although the LITE version doesn’t feature everything
like the regular one, it covers the most commonly used services.

3. YONO Lite SBI

Previously known as SBI Anywhere Personal, YONO Lite SBI is the mobile app for the State
Bank of India account holders. This application supports Punjabi, Gujarati, Tamil, Hindi, and
English languages. Having lots of features, this mobile banking app is easy to use and secure.
Alongside click-based transactions, you can utilize voice-assisted transactions also in this
application.

4. Axis Mobile
Due to its amazing stability, the Axis Mobile application is extremely famous. This banking app
allows all customers a lot of services and functions. Along with the basic funds transfer and
checking account statements, users can schedule credit card payments for a particular date
according to their suitability through this app, change credit card payments to EMIs, deactivate
debit cards temporarily, set limits on purchases through debit card, block cards, and replace
them.
Application users also can set auto-pay bills and standing instructions for more than 200 utility
services. Through this banking app, you can make a Favorite list with the 10 most common
transactions done on the app. Moreover, customers can tweet and email feedback straight from
the application and ask for a call back from the customer care representative.

5. IDBI Bank GO Mobile+

IDBI Bank GO Mobile+ application boosts the customer banking experience with a tailored,
simple UI offering an extensive array of services and features. IDBI mobile banking enables
users to avail multiple banking services anywhere and anytime.
Consumers of IDBI bank can sign up and log in to this app and check account statements,
payments, make bill payments, transfer funds, and more. Furthermore, customers can also
recharge prepaid mobile or make utility bill payments through this app.
6. Baroda M-Connect Plus
The M-Connect Plus app of Bank of Baroda is an extremely user-friendly mobile banking app. It
enables customers to make credit card payments, pay utility bills, and transfer funds
immediately. Moreover, the app enables consumers to make cash withdrawals without using a
card from BOB ATMs.
The app gives a complete view of account details and transaction history and allows consumers
to ask for a new cheque book. One of the most noteworthy features of M-Connect Plus is that it
is now available in seven regional languages. And this enhances its availability among all
consumers across the nation.

7. iMobile Pay by ICICI Bank

iMobile Pay, the mobile banking application of ICICI Bank is one of the highest-rated banking
apps in India. This app enables its consumers to pay credit card bills, transfer money, open RDs
& FDs, pay utility bills, and handle Life Insurance policies.
Moreover, this banking app helps customers transfer money immediately through UPI payments,
locate ICICI Bank ATMs, and transfer money to a mobile number or email ID. The latest update
of this app reflects bug fixing and allows users to avail immediate personal loans against their
credit cards, check loan eligibility, and upgrade debit cards.

8. CANDI – Mobile Banking App!

CANDI – Mobile Banking App of Canara Bank is introduced by the bank with a big goal of
executing ‘One Bank, One App’. This multi-channel app supports many banking services
incorporating opening an FD or RD, money transfer, loan payments, EMI payments, and more.

9. BOI Mobile
BOI Mobile is the official mobile banking app of the Bank of India. This is the most secure and
detailed app that provides any type of banking facility you need on your mobile. You just need to
sign up for availing yourself of the mobile banking services of the Bank of India.
BOI Mobile allows its users to view and make transactions from all your accounts incorporating
Deposits and Loans. Also, you can check your account balance, passbook, and email detailed
bank statements, transfer money to any bank account through RTGS, NEFT, or IMPS, and get
customized offers on your mobile.
BOI Mobile boasts the Favorite feature that helps you transact the fastest way. You can fast
access and finish your transactions for money transfer by tagging a transaction as favorite.
Moreover, this mobile banking app offers multiple banking services like locating an ATM,
checking the status of or stop your cheque facility, track your service requests, order a cheque
book, and so forth.

10. PNB ONE

PNB ONE is the official initiative of Punjab National Bank. It integrates several banking
procedures being served through one platform. This mobile banking app allows you to check
account statements, transfer money, handle credit and debit cards, invest in term deposits, and
several other amazing services just a click away.
Growth of Mobile Banking in India

It can be observed that the growth in the number of mobile banking transactions in the years
2012-2014
have been very minimal. But after the launch of the Digital India program in
the year 2015, there was a sudden increase in the number of transactions i.e.,
386.6mn in 2015-2016, almost double than that of the previous year i.e.,
171.9mn transactions in 2014-2015. Later in the year 2016-2017 mobile
banking transactions grew from 386.6mn transactions in 2015-16 to
976.85mn transactions. The post demonetization period has shown
increasing trends in the number of mobile banking transactions when
compared to the pre demonetization period. It is believed that
demonetization was one of the catalysts for mobile banking in India.
Followed by the COVID-19 pandemic in India, Mobile Banking
transactions in the month of Jan 2020 were 14,402.70 lakh (1440.27 mn)
and in June it shooted up to16,188 lakh volume of transaction. The total
number of transactions from Jan 2020 to June 2020 were 84602 lakhs
(8460.2mn) (Source: RBI Combining all 354 banks of India recognized by
RBI of Public and Private sector). Hence COVID-19 is considered as one of
the largest catalysts after demonetization to promote the adoption of mobile
banking in India.
 CHAPTER NO 2-RESEARCH METHODOLOGY
2.1 OBJECTIVES:
1. To understand the basic concept of Mobile Banking in India.

2. To Study the Challenges comes in front of users while adopting Mobile Banking.

3. To analyze the positive and negative factors of Mobile Banking.

4. To Study the various purpose of using Mobile Banking.

2.2 HYPOTHESIS:

Ho:

H1:
2.3 RESEARCH DESIGN/SAMPLE DESIGN;
A) RESEARCH METHOD; This research project is based on survey method

B) UNIVERSE/POPULATION; Area taken for research is Mumbai

C) SAMPLE AREA; The area targeted to study was Khar, Bandra, Santacruz

D) SAMPLE SIZE: Total sample = 30

E) SAMPLE TECHNIQUES: The technique used to study are simple random

Sampling method

F) SAMPLE PERIOD: The sample period for this research was done in the months of
January and February 2022

G) SOURCE OF FUND:

PRIMARY DATA
QUESTIONNAIRE:
 CHAPTER NO 3: LITERATURE REVIEW
Many studies have been conducted on the subject of mobile banking in India and abroad.This
research gives us the idea about the term mobile banking and its various features and the review
on them.

According to Vinayagamoorthy and Sankar (2012), Mobile banking can perform various
functions like checking of account history, mini statement, access to card statements, SMS alert,
checking of balance etc. with the help of mobile phones. Banks are continuously trying to
increase their base by updating technology and by trying to reach every customer. Even the
ruralcustomers can get easy access to Mobile banking whenever required.

According to Chugh (2014), The RBI operative guidelines indicate that only those banks
which are licensed and supervised
in India and have a physical presence in India will be permitted to offer Mobile banking services.
The following section
contains a list of studies conducted in the area of Mobile banking both worldwide and in India.
The reviews are presented in achronological order.

According to Nsoui Saleh M. and Schaechter Andrea (2002), Even though customers
benefit a lot through electronic banking,
there are lots of risks such a regulatory risk, reputational risk and operational risk. Liao and
Cheung (2002) found that
individual expectations regarding accuracy, security, network speed, user-friendliness, and user
involvement and convenience
were the most important quality attributes in the perceived usefulness of Internet-based e-retail
banking

During January 2008, ICICI bank started the first mobile services in India (Mr. V.
Vaidyanathan, 2008) and SMS alerts
started in 2005-06 (Alpesh Patel, 2013). Almost 16.5per cent of wireless mobile phone
subscribers are using the Internet over
their mobile phones. (Alpesh Patel, 2013).

A Research by Laforet and Li (2005) on consumer attitude and adoption of Mobile banking
showed there are several factors
that affects and influences the consumer’s attitude towards online banking. They are person’s
demography, individual
acceptance of new technology, motivation and behavior towards different banking technologies.
It has been found that prior
experience of computer and new technology also influences consumer’s attitudes toward online
banking.

According to Mavri and Ioannou (2006), the critical factors that affect an individual’s
decision to use or not to use online
services are age, the difficulties of using the Internet, fear of changes in banking sector due to
technological development and
lack of awareness and information about products and services provided to customers through
electronic delivery channels.
Factors such as cost of using the Internet and speed of transactions have little impact on an
individual’s final decision.

Pousttchi & Schurig, 2004 Mobile phones have become an essential communication tool
for almost every individual worldwide. In India, where mobile subscribers far exceed fixed
line subscribers because of better mobile infrastructure in comparison to fixed line
infrastructure has made mobile banking much more appealing in India. Technology plays an
important role in banking sector. Mobile phone is a common technology device that became
part of every individual in the information era. Mobile Banking is an emerging alternate
channel for providing banking services. India is the second largest telecom market in the

world, which is having high potential for expanding mobile banking services.

Sharma, Prerna, Bamoriya & Preeti Singh 2011Mobile Banking refers to

provision and usage of banking and financial services with the help of mobile
telecommunication devices. Mobile banking is a system that helps the customers to conduct
a number of financial transactions with the help of their mobile devices. Mobile commerce
is a natural successor to electronic commerce. Where a mobile device is used to initiate,
authorize and confirm an exchange of financial value in return for goods and services.
Mobile devices may include mobile phones, PDAs, wireless tablets and any other device that
connect to mobile telecommunication network and make it possible for payments to be made
Tiwari & Buse, 2007 The bank provides mobile banking services to their customers, wishing
to increase
their customer share by removing all the hurdles in the way of adoption of mobile banking
services The role of banking is very important in operating the business as well as industry
functions. As the Internet banking is still in its growing stage, mobile banking has emerged
as the next advance way of doing banking. The scope of offered services may include
facilities to conduct bank transactions, to administer accounts and to access customized
nformation