Prof.: Impact of Mobile Banking (M-Banking) On Banking Sector

A PROJECT REPORT ON
IMPACT OF MOBILE BANKING (M- BANKING) ON BANKING

SECTOR
SUBMITTED BY
RAVAKSHI DEEPAK CHHEDA
BACHELOR OF MANAGEMENT STUDIES

SEMESTER VI
(2018-2019)
NAME OF PROJECT GUIDE
Prof. SOUMIK CHATTAPADHYAY
SUBMITTED TO:
MSG-SGKM College of Arts, Science & Commerce,

Ghatkopar (E)
UNIVERSITY OF MUMBAI
ACADEMIC YEAR “2018-2019”

NAME OF THE TOPIC:
IMPACT OF MOBILE BANKING (M- BANKING) ON BANKING

SECTOR
BACHELOR OF MANAGEMENT STUDIES

SEMESTER VI
(2018-2019)
Submitted In Partial Fulfillment Of The Requirement

For the Award of Degree Of
Bachelor Of Management Studies
By
RAVAKSHI DEEPAK CHHEDA
ROLL NO. 41680
MANAGED BY: SOUMIK CHATTAPADHYAY

MSG-SGKM COLLEGE
OF ARTS SCIENCE AND COMMERCE.
Tilak Road Ghatkopar (East), Mumbai - 400075
MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

DECLARATION
I, RAVAKSHI DEEPAK CHHEDA the student of Bachelor of

Management Studies, Semester VI of MSG-SGKM COLLEGE,
GHATKOPAR (EAST) hereby declare that, I have completed the project on
“Impact of Mobile Banking (M-Banking) on Banking Sector” in the
academic year 2018-19. This information submitted is true & original to the
best of my knowledge.
SIGNATURE OF STUDENT
(RAVAKSHI DEEPAK CHHEDA)

ACKNOWLEDGEMENT
I take this opportunity with great pleasure to present before you this project on
“Impact of Mobile Banking (M-Banking) on Banking Sector” which is a result of
cooperation, hard work and good wishes of many people. I would like to thank with
deep sense my project guide Prof. Soumik Chattapadhyay, for his kind
appreciation, friendly guidance, constant encouragement, involvement in my project
work and for his valued guidance throughout my study.
I owe the debt to our Principal Nawal Khan for giving me an opportunity to
present a creative outcome in form of a project. I express my sincere thanks to the
library staff who have provided me right information and study material at the right
time. No words can adequately express my debt of gratitude to all my BMS friends
for their continuous support while the work was in process. I also wish to thank my
Family Members whose efforts and creativity helped me in giving the final structure
to the project.
Lastly needless to say I am also thankful to all those seen and unseen hands and
minds, which have been of direct or indirect, help in the completion of my project.

CERTIFICATE
This is to certify that MS. RAVAKSHI DEEPAK CHHEDA

satisfactorily completed the project work titled.
IMPACT OF MOBILE BANKING (M-BANKING) ON BANKING SECTOR
This work is being submitted by MS. RAVAKSHI DEEPAK CHHEDA towards

partial fulfillment of the requirement of the BACHELOR OF MANAGEMENT
STUDIES degree course 2018-2019 & has been carried out by her & under the
guidance of Prof. SOUMIK CHATTAPADHYAY at MSG-SGKM COLLEGE
affiliated to the UNIVERSITY OF MUMBAI.
________________ ________________
PROJECT GUIDE COORDINATOR
(SOUMIK CHATTAPADHYAY)
_______________ _______________
PRINCIPAL EXTERNAL EXAMINER
(NAWAL KHAN)
TABLE OF CONTENT
SR PAGE

NO TOPIC NO
1 Executive Summary
2 Objective of the study
3 Scope of the study
4 Limitation of the study
5 Introduction to M-Banking
6 Overview of M-Banking
7 History of M-Banking
8 Indian Banking and Cellular Market
9 Mobile Banking in India today
10 E-Banking
11 Benefits of M-Banking
12 Barriers to M-Banking
14 Technological and regulatory factors impacting future growth
15 Technologies behind Mobile Banking
16 Marketing strategies used by banks via Mobile Banking
17 Impact of Demonetization on Banking Sector and M-Banking
18 Impact of Government Policies and Initiatives i.e. Digital India, etc. on M-

Banking
19 Who is using M-Banking today?
20 What will be the future of mobile banking?
21 Research Methodology
22 Data Analysis and Data Interpretation

23 Conclusion
24 Bibliography

EXECUTIVE SUMMARY
India is one of the fastest growing countries in terms of mobile user. Now mobile phones are not
only a medium of voice communication but also widely used for mobile services. Mobile based
services or M-services are defined as electronic services that are delivered to the consumers via
mobile technologies using mobile devices. M-services is limited concept of E- services which is
able to provide services anywhere at any time. Due to this reason this concept becoming popular
among people. Investments in M-services are growing and these services stand to offer the promise
of creating a social impact in the area of healthcare, agriculture, financing, governance and
education. In this paper, we will study about M-banking which is subset of m-services in India. The
m-banking is fast growing with its multitude features offered with mobile apps and internet
banking. Indian Banking Association is urged to heavily invest in technologies that can evolve and
protect against future threats, as well as tackle current pressures from malware and social
engineering.
Most of the banks provide their own banking applications to make their customers feel comfortable.
With these banking applications we can manage our own bank accounts on-the-move. Even we can
ensure hassle free online transactions for shopping and transfer amount to different accounts and
view transaction history, etc. with the productive growth of mobile banking and on-the-go-
payments, individuals no longer need to stand in endless queues to perform crucial financial
operations.
Whether it is a monetary transaction or checking account balance, you can always refer to the
banking applications out there. Mobile banking applications have made things easier for countless
people across the globe. Mobile banking lets the customers to handle banking transactions more
rapidly and conveniently. Which also has value.
OBJECTIVES OF THE STUDY
 The basic objective of my project is to analyze the awareness among people about the
mobile banking applications and its services.
 To find how often people use these services.
 To find out how this service is having its future growth.
 To study the acceptance of mobile banking applications.
 To study the M-Banking trends.
 A study on impact of demonetization on Banking sector and M-Banking.

SCOPE OF STUDUY
The following has been covered under the project “Mobile Banking”.
1. Introduction to mobile banking
2. Advantages & Disadvantages
3. Mobile Banking in India today
4. Technological and Regulatory Factors Impacting future growth
5. Impact of Demonetization on Banking sector and M-Banking
6. Who is Using M-Banking today?
7. What will be the future of M-Banking?
8. E banking
9. SMS Banking
10. Survey to find out the awareness

LIMITATIONS OF THE STUDY
1. I have restricted my project on ‘mobile banking’ to the extent of individual’s only.
2. Survey has been conducted on micro level basis to know awareness of mobile banking.
3. Consumer’s perception changes from time to time with the advancement in the
technology.
4. Lack of information pertaining to the various angles of the report.

Introduction to M-Banking
The fast advancing global information infrastructure (including information technology and
computer networks such as the Internet and telecommunications systems) enable the
development of electronic commerce at a global level. The nearly universal connectivity
which the Internet offers has made it an invaluable business tool. These developments have
created a new type of economy, which many call the ‘digital economy’. This fast-emerging
economy is bringing with it rapidly changing technologies, increasing knowledge intensity
in all areas of business, and creating virtual supply chains and new forms of businesses and
service delivery channels such as e-banking.
As a direct consequence of the emergence of the ‘digital economy’, the balance of power
seems to be shifting to the customers. Customers are increasingly demanding more value,
with goods customized to their exact needs, at less cost, and as quickly as possible. To meet
these demands, businesses need to develop innovative ways of creating value which often
require different enterprise architectures, different IT infrastructures and different way of
thinking about doing business. This transformation of business from an old company to a
new agile electronic corporation is not easy and requires a lot of innovative thinking,
planning and investment.
In India, commercial banking industry has involved various financial innovations, which
means shifting their focus from tradition banking to technology banking to satisfy the needs
of their customers and to get competitive edge. Mobile banking is one such innovation.
Mobile Banking is defined as doing various banking transactions like fund transfer, balance
enquiry, investments, paying bills through the use of mobile phones. All the banks that are
licensed and have branch in India are allowed to provide mobile banking services to their
clients. This facility helps customers to transfer fund from one account to another account on
a real time basis using mobile network. (TRAI, 2013)

This facility removes the space and time constraints from various banking transactions
(Mishra & Sahoo, 2013). This has made banking convenient for customers and also
impacted their banking transactions. It is used not only for banking but customers also for
paying bills, booking movie tickets, mobile recharge etc. It helps banks to communicate with
their clients frequently and generate revenue in terms of increased customer’s transactions
through mobile banking. This paper inspects consumer perception about the mobile banking
system provided by their bank and explains various factors having an impact on their
banking transactions through mobile. Bank have started using technology into their system
in the form of mobile banking to offer various benefits to their customers such as liberty to
pay bills anytime and anywhere, making payments while sitting in home or office, to receive
account updates anytime. This helps the customers to do banking transactions easily and
effectively without going to their bank’s branch.

Overview of M-Banking
Mobile banking (m‐banking) has emerged as a popular mode of banking in many developed and
developing countries. In India, there are approximately 300 million mobile banking users and this
figure is expected to grow rapidly with mobile transactions exceeding credit card transactions by the
end of the decade.
By some measures, there are more mobile phones in India than there are bank accounts. The
combination of two factors—a large unbanked population and the ubiquity of cell phones—is a
catalyst for high mobile banking adoption.
To fully understand the current status and future trends in this market requires some comprehension
of the general banking sector the turf where mobiles compete with physical bank branches and
computers. Also, knowledge of cellular phone penetration is needed to get a sense of who mobile
banking services will reach. The following pages provide a brief background on these topics and
some information on the structure and services in the mobile banking sector.
Now-a days, because of easy availability of smart phones and cheaper internet connection in India it
seems the bright future for M-Banking.

History of M-Banking
When cellphones turned into smartphones, and began to mimic the power found in most computers,
banks have been able to provide consumers with powerful mobile banking apps that allow you to
complete your banking from wherever you are. This includes making deposits - depending on the
bank and its mobile app -- checking funds, making bill payments, transferring or sending money.
Mobile banking differs from the payment features available on many of today's smartphones, as it
provides a sign-on link to your individual checking or savings accounts by an app you download
from your bank's website. Though some European banks offered mobile banking as early as 1999, it
took until 2012 for major banks in India to develop mobile banking apps that actually worked and
customers wanted.
In the beginning
Banks faced mobile banking challenges in the early part of the decade until the first smartphones hit
the market in 2007. Consumers found it difficult to view their financial information on the small
cellphone screens that were common at the turn of the 21st century. Some banks offered the service,
only to discontinue it for lack of interest. In 2002, Wells Fargo developed a mobile banking service
and only 2,500 customers enrolled in it. Because of the poor response, they soon withdrew the
offering.
Smartphones changed everything
Once smartphones took over from cellphones, and the size and capabilities of mobile devices
increased, so did the effectiveness of mobile banking. Banks introduced mobile banking apps that
accommodated more types of cellphones, but smartphone users and advanced apps gave mobile
banking the boost that made it a safe and viable choice. Consumers preferred the easier navigation
and improved images and graphics offered by these updated, technologically advanced apps.

INDIAN BANKING AND CELLULAR MARKET
Banking modes available to the Indian customer
There are approximately 80 commercial banks in India, operating around more than 1, 00,000
branches and with over 1 million employees. The sector is mainly composed of public, private and
foreign banks. In addition, there is also a vast network of rural banks and credit institutions. But
despite such a sprawling network of institutions and much push from the government for financial
inclusion, more than 70% of India’s population remains outside the formal banking sector. In recent
years, technology has expanded channels through which consumers can interact with their financial
institutions, providing not only easier access to the existing base, but also facilitating penetration of
financial services among the population.
Brick and mortar branch network:

Brick and mortar branches are the foundation of India’s banking system. In India, these branches
can range from complex operations with hundreds of employees in dense urban locations to one‐
man, single‐room branches in rural areas. The nationalization of banks in the late 1960s and early
1980s was accompanied by government effort towards bringing more and more of the population
into the banking net. Tight regulations governed the expansion of branches, with a view to increase
inclusion; banks were required to open certain number of rural branches for any non ‐rural branches
they wanted to operate. Despite such regulations and encouragement, branches per capita remain
among the lowest in emerging markets (12000 people/branch). The typical scenario inside a
traditional Indian bank involves waiting in long queues even for the simplest of transactions, such
as a passbook update or cash withdrawal.
Automatic Teller Machines (ATMs)

Innovations in banking delivery channels started with the introduction of ATMs as a self ‐service
delivery channel in the late 1990s. ATMs also marked the entry of anytime banking as customers
could now access money from their bank accounts at a time of their convenience. As of 2012,

ATMs remain the most successful delivery channel in India followed by telephone banking and
internet
Banking. With about 2,00,000 plus off‐branch and in branch ATMs installed, banks are seeking to
reach out to a large customer base at a substantially lower cost, giving them easier access and faster
service. The State Bank of India and associate banks own the largest number of ATMs at 30,476.
They are followed by Axis Bank (11,091), ICICI Bank (8,708) and HDFC Bank (6,383).Typically,
a transaction, which costs Rs. 50 at a branch, costs about Rs. 15 if done through an ATM. Research
shows that the number of footfalls at bank branches has fallen drastically after the installation of
ATMs. In order to further reduce the cost of service delivery and revenues through ATMs, banks
have started out‐sourcing and sharing of ATM services and cross‐selling other products. Some
banks have already started dispensing railway tickets and movie tickets through their ATMs. In the
future,a bank’s ATM may function like a kiosk delivering many more non ‐cash transactions, further
increasing the profitability of ATMs.
Internet Banking:
Increasing interest in self‐service continued and internet usage prompted banks to introduce the
concept of “anywhere banking.” Customers could now access their bank accounts, check their
account details, get their bank statements, transfer money to other accounts and pay their bills from
the comforts of their home or office. Internet Banking, also offered significant cost advantage to
banks. A net‐based transaction costs the bank only around Rs. 4, which is much lower than even an
ATM, mainly due to savings on prohibitive real estate costs as well as labor costs.
However, internet banking has grown slowly in India due to a combination of psychological, legal,
technological and socioeconomic factors. The biggest limitation of internet banking is the
requirement of a computer with an internet connection, which is not a common across Indian
households. A lack of critical mass of early adopters, lack of a strong trust environment, slowness in
adoption of internet, low penetration of PCs and access to internet are some of the impediments in
the adoption of internet banking in India. Security issues also loom large and customers restrict
usage of Internet banking to their home and office computers.

High penetration and rapid growth in the Indian cellular market:
The spread of mobile phones across India is one of the most remarkable economic and technology
success stories of the last 15 years. It has contributed significantly to the growth and modernization
of various sectors and the overall socio‐economic development of India. The number of mobile
phone subscribers in India reached a whopping 300 million at the end of March 2012. The Indian
mobile phone industry registered a consistent overall growth rate of around 45% annually in terms
of subscribers. The sector remains competitive with several domestic and international players
vying for this growing customer base.
Today, a mobile phone has become an essential part of an average Indian’s existence. This is a
result of positive regulatory changes, intense competition among multiple operators, low ‐priced
handsets, prepaid cards, low tariffs and significant investments in telecom infrastructure. The well
distributed network of telecommunication services in India has resulted in widening of markets,
efficient information flows, lower transaction costs and an effective substitute for infeasible
physical transport.

MOBILE BANKING IN INDIA TODAY
The predominant model for mobile banking in India is the bank ‐led model wherein banks are the
focal point of transactions and it is their brand that dominates. Mobile banking is offered to
customers/depositors of the particular bank and all accounting and transfers are through the bank. A
variant of this model is where telecom operators and banks partner to offer services. Examples of
these are joint ventures between Airtel and Axis bank and Vodafone Essar and ICICI Bank. Often,
the cellular service operator will provide a customized platform or built ‐in applications to facilitate
m banking transactions. Banks with mobile banking options offer services in the general categories
of account information provision, payments and transfers, investments, support and content
services. Most m‐banking/m‐payments systems in India enable users to do
i) Store value (currency) in an account accessible via the handset. If the user already has a
bank account, this is generally a question of linking to a bank account. If the user does not have an
account, then the process creates a bank account for her or creates a pseudo bank account, held by a
third party or the user’s mobile operator.
ii) Convert cash in and out of the stored value account. If the account is linked to a bank
account, then users can visit banks to cash‐in and cash ‐out. In many cases, users can visit a corner
kiosk or grocery store and transact with an independent retailer working as an agent for the
transaction system.
iii) Transfer stored value between accounts. Users can generally transfer funds between
accounts linked to two mobile phones, by using a set of SMS messages (or menu commands) and
PIN numbers.

E-BANKING
The acceleration in technology has produced an extraordinary effect upon our economy in general
has had a particularly profound impact in expanding the scope and utility of financial products over
the last ten years. Information technology has made possible the creation, valuation, and exchange
of complex financial products on a global basis and even that just in recent years. Derivatives are
obviously the most evident of the many products that technology has inspired, but the substantial
increase in our calculation has permitted a variety of other products and, most beneficially, new
ways to unbundled risk.
What is really quite extraordinary is that there is no sign that this process of acceleration in financial
technology is approaching an end. We are moving at an exceptionally rapid pace, fueled not only by
the enhanced mathematical applications produced by our ever rising computing capabilities but also
by our expanding telecommunications capabilities and the associated substantial broadening of our
markets.
Functions of E-banking
At present, the personal e- bank system provides the following services: -
1. Inquiry about the information of account:

The client inquiries about the details of his own account information such as the cards /
account’s balance and the detailed historical records of the account and downloads the report
list.
2. Card accounts’ transfer:

The client can achieve the fund to another person’s Credit Card in the same city.

3. Bank -securities accounts transfer:
The client can achieve the fund transfer between his own bank savings accounts of his own Credit
Card account and his own capital account in the Securities Company. Moreover, the client can
inquire about the present balance at real time.
4. The transaction of foreign exchange:
The client can trade the foreign exchange, cancel orders and inquire about the information of the
transaction of foreign exchange according to the exchange rate given by our bank on net.
5. The B2C disbursement on net:

The client can do the real-time transfer and get the feedback information about payment from our
bank when the client does shopping in the appointed web-site.
6. Client service:
The client can modify the login password, information of the Credit Card and the client
information in e- bank on net.
7. Account management:
The client can modify his own limits of right and state of the registered account in the personal e-
bank, such as modifying his own login password, freezing or deleting some cards and so on.
8. Reporting the loss if the account:

The client can report the loss in the local area (not nationwide) when the client’s Credit Card or
passbook is missing or stolen.

Types of E- banking
1. Deposits, withdrawals, inter-account transfer and payment of linked accounts at an ATM;
2. Buying and paying for goods and services using debit cards or smart cards without having to
carry cash or a cheques book;
3. Using a telephone to perform direct banking- make a balance enquiry, inter- account
transfers and pay linked accounts;
4. Using a computer to perform direct banking- make a balance enquiry, inter- account transfers
and pay linked
Advantages of E-Banking
1. Account Information: Real time balance information and summary of day’s transaction.
2. Fund Transfer: Manage your Supply-Chain network, effectively by using our online hand
transfer mechanism. We can affect fund transfer on a real time basis across the bank
locations.
3. Request: Make a banking request online.
4. Account information: The complete database that the bank has about our company is available
to us at our terminal. It provides us:
 Current balance in our account on real-time basis.
 Day’s transactions in the account.
 Details of cash credit limit, drawing power, amount utilized, etc.

5. The real life situation of user-wise limits and multilevel signatories can be mapped in the net-
based fund transfer module too. We can specify user-wise cap for fund transfer and the

number of approvals needed for each fund transfer. The fund transfer will not take place
unless the required number of signatories has approved it.
6. With a power of Attorney from our dealers, we can link the dealer’s accounts to our account
in order to have an online fund transfer, saving us time and money involved with cheques
collections systems. Alternatively, the dealer can credit our account through this channel.
Similarly, we could also affect vendor and other payments online.
7. Customers can also submit the following requests online: Registration for account statements
by e-mail daily / weekly / fortnightly / monthly basis.
 Stop payment or cheques
 Cheque book replenishment
 Demand Draft / Pay-order
 Opening of fixed deposit account
 Opening of Letter of credit

8. The company does not have to spend anything extra to avail such facilities. All it requires is
Internet connectivity. The product enables the company to pro-actively manage its cash flows,
ease reconciliation efforts as all the MIS is available at the click of the mouse.
9. Bill Payment through Electronic banking: Internet has thus ushered the concept of anytime
and anywhere banking. To the individual the onerous task of visiting several places to settle his
service bills like telephone, water, electricity, etc., can be overcome through the electronic
Bill Pay service provided by the bank. He can pay his regular monthly bills (telephone, electricity,
mobile phone, insurance, etc.) right from his desktop. No more missed deadlines, no more
loss of interest. He can schedule his bills in advance, and thus avoid missing the bill deadlines as
well as earn extra interest on his money.

10. Other benefits: The e- banking provides some other benefits also. They are:
 Convenience.
 Speed of concluding transactions.
 Safety- banking from own home.
 Economy-banking without visiting your bank.
 Cheaper service fees.
 Seamless Integration with existing environment (IDM-Intelligent Data Module).
 Highly Saleable.
 Easy Customization.
 Lower Costs of both Installation and Maintenance.
Limitation of E- banking:
1. Safety situations around ATMs.
2. Abuse of bank cards by fraudsters at ATMs.
3. Danger of giving your card number when buying on-line.

WHAT IS THE DIFFERENCE BETWEEN INTERNET BANKING
AND MOBILE BANKING?
The Digital user is fast, sharp and always on the move. They are always connected and ready to try
new products on the shelf. As far as banking is concerned, they like it swift and convenient. In a
Digital world that is constantly evolving, they are always willing to keep up with the latest trends
that are making banking simpler. The same has happened with the onset of Internet Banking and
Mobile Banking. It has made banking simpler, easier and extremely convenient.
What started with cashless transactions with Credit Cards and Debit cards, has now moved to an all
new level with Mobile apps and Internet Banking. There used to be a time when swiping a card at a
shop would mean a big leap of faith but now everything is on your screen. Up, close and personal.
You shop online, you pay online. You book movie tickets online and you make the payment online.
Every minor transaction can happen without walking across to a vendor personally or actually
exchanging cash. While some swear by Internet banking, there are some who prefer to use their
mobile Apps for banking. But what is the difference between Internet Banking and Mobile
Banking?
Well, first things first. It all started with Internet Banking. Mobile banking is a much latest entrant
into the digital world of banking. When Internet Banking took off, it felt like the go to thing for all
transactions. Never before could a customer access his/her account balance and make transactions
sitting on their sofa in the comfort of their home. All you require is your customer ID and the rest
falls into place. Right from making credit card payments to setting up your mutual fund and loan
repayment debits, everything is a part of Internet banking. If you needed to buy anything, you could
immediately make a payment online and there that was, your transaction was done. There is no
waiting time; there is no need to check if there was cash in your wallet. All you needed was your
login credentials.

Mobile banking is just the thing you need when you are on the move. In the absence of a
laptop/computer, your mobile app is the answer to all your banking needs. Be it a phone recharge or
a fund transfer, a mobile app takes care of all your basic utility bill payments for which you would,
once upon a time make multiple trips. What mobile banking gives you is the freedom to make a
transaction irrespective of the place or time. You maybe commuting or waiting at the airport, your
mobile app is always handy! Further you can locate ATMs and add beneficiary payees. All this and
more adds to your convenience as a user.
Mobile Banking and Internet banking are two sides of the same coin. The screens have changes, the
sizes have become smaller and banking has become simpler.

BENEFITS OF M - BANKING
Financial institutions are well aware of innovations in financial sector and how it has revolutionized
banking practices today. In an effort to reach up to customer’s rising expectations, banks must adapt
to the latest innovations. One of the biggest outliers in FinTech sector is mobile banking solutions
which are taking over the banking world.
The modern customers want their banks to offer convenience and high-tech banking options.
While large-sized financial institutions already embrace mobile banking, small-sized banks find it
tough to compete with others who offer these new-age solutions. However, opting for a mobile
banking solution that suits your business ensures customer satisfaction.
Be available when and where your customers want you to be:
Mobile banking does not restrict your business to set times/locations. Be available 24/7 – anytime,
anywhere!
Empower your customers:
Your users will be able to transfer funds, invest or exchange currency without
interruptions/suggestions from anyone, waiting time and quick turnaround on requests.
Go green, go paperless:

Deliver paperless statements directly into customers’ email addresses, while saving the cost of
printing, paper and delivery. The less wastage of paper makes this solution environment friendly.
Have a single view of customers:
Link your mobile banking application with the existing core banking solution to know your
customers better. Study the customer’s profile and account information to understand their financial
habits for offering personalized products/services.
Provide super-fast services to customers:
With smart features of smartphones like the camera, enable your customers to simply click pictures
and initiate requests. For example: Open a new account by clicking and submitting KYC documents
online instantaneously.
Facilitate location-based services:
Track a user’s location, push notifications for recent offers nearby and ensure greater security
against frauds for transactions initiated from unfamiliar locations etc.
Reward your customers:
Give loyalty rewards to customers in the form of points or discount coupons for transacting via the
mobile banking application.
Safeguard customer details:
Share real-time updates on transactions executed, configure multi-level security features like OTP
to registered mobile for authentication via the banking application.
Streamline the contact process:
Allow your customers to get in touch with bank staff using the banking app. Give them options to
chat/call at any point of time for help and feedback when they feel stuck or need personal assistance
for particular financial services.
Stay efficient and compliant:

Minimize human errors, automate processes and become competitive using a good mobile banking
solution. Also, follow rules and guidelines recommended by the regulatory bodies consistently.
Other benefits such as,

The biggest advantage that mobile banking offers to bank is that it drastically cuts down the costs of
providing service to the customers. Additionally, this new channel gives the bank ability to cross-
sell up-sell their other complex banking products and services such as vehicle loans, credit cards
etc.
For service providers, Mobile banking offers the next surest way to achieve growth. Countries like
Korea where mobile penetration is nearing saturation, mobile banking is helping service providers
increase revenues from the now static subscribers use. Service providers are increasingly using the
complexity of their supported mobile banking services to attract new customers and retain old ones.
A very effective way of improving customer service could be to inform customers better. Credit
card fraud is one such area.
A bank could, through the use of mobile technology, inform owners each time purchases above a
certain value have been made on their card. This way the owner is always informed when their card
is used, and how much money was taken for each transaction. Similarly, the bank could remind
customers of outstanding loan repayment dates for the payment of monthly installments or simply
tell them that a bill has been presented and is up for payment. The customers can then check their
balance on the phone and authorize the required amounts for payment.
The customers can also request for additional information. They can automatically view deposits
and withdrawals as they occur and also pre- schedule payments to be made or cheques to be issued.
Similarly, one could also request for services like stop cheque or issue of a cheque book over one’s
mobile phone.
There are number of reasons that should persuade bank in favor of mobile phones.
They are set to become a crucial part of the total banking services experience for the customers.
Also, they have the potential to bring down costs for the bank itself. Through mobile messaging and
other such interfaces, bank provides value added services to the customer at marginal costs.
Such messages also bear the virtue of being targeted and personal making the services offered more
effective. They will also carry better results on account of better customer profiling.
Yet another benefit is the anywhere/anytime characteristics of mobile services. A mobile is almost
always with the customer. As such it can be used over a vast geographical area. The customer does
not have to visit the bank ATM or a branch to avail of the bank’s services. Research indicates that
the number of footfalls at a bank’s branch has fallen down drastically after the installation of
ATMs.
As such with mobile services, a bank will need to hire even less employees as people will no longer
need to visit bank branches apart from certain occasions.
With Indian telecom operators working on offering services like money transaction. Over a mobile,
it may soon be possible for a bank to offer phone-based credit systems.
This will make credit cards redundant and also aid in checking credit card. Fraud apart from
offering enhanced customer convenience. The use of mobile Technologies is thus a win-win
proposition for both the bank and the bank’s Customers. The banks add to this personalized
communication through the process of Automation. For instance, if the customer asks for his
account or card balance after conducting a transaction, the installed software can send him an
automated reply informing of the same. These automated replies thus save the bank the need to hire
Additional employees for servicing customer needs.
Use banking facilities anywhere, even far away from a bank .Easy operation – access accounts from
a cell phone. Lower operational costs (for bank) than setting up ATM machines.

DISADVANTAGES OF M BANKING
Many consumers use mobile banking on their cell phones or other portable device because it allows
them to quickly access information such as account balance and transaction history. The benefits of
this convenience are undeniable, but there are a number of disadvantages that mobile banking users
should be aware of. The technology's cost, compatibility issues and security problems may cause
you to think twice about using it.
Security
Security experts generally agree that mobile banking is safer than computer banking because very
few viruses and Trojans exist for phones. That does not mean mobile banking is immune to security
threats, however mobile users are especially susceptible to a phishing-like scam called "smishing."
It happens when a mobile banking user receives a fake text message asking for bank account details
from a hacker posing as a financial institution. Many people have fallen for this trick and had
money stolen through this scam.
Online banking is usually done through an encrypted connection so that hackers cannot read
transmitted data, but consider the consequences if your mobile device is stolen. While all banking
applications require you to enter a password or PIN, many people configure their mobile devices to
save passwords, or use insecure passwords and PINs that are easy to guess.
Compatibility

Mobile banking is not available on every device. Some banks do not provide mobile banking at all.
Others require you to use a custom mobile banking application only available on the most popular
smart phones, such as the Apple iPhone and RIM Blackberry. Third-party mobile banking software
is not always supported.
If you do not own a smart phone, the types of mobile banking you can do are usually limited.
Checking bank account balances via text message is not a problem, but more advanced features
such as account transfers are generally not available to users of "dumb phones."
Cost
The cost of mobile banking might not appear significant if you already have a compatible device,
but you still need to pay data and text messaging fees. Some financial institutions charge an extra
fee for mobile banking service, and you may need to pay a fee for software. These extra charges
quickly add up, especially if you access mobile banking often.
Other barriers such as,

Back in days when Internet was introduced, it was a boon to the financial industry as it reduced all
volumes by opening another self-service channel for servicing customers.
With mobile that advantage is not there as already investments are made to reduce call volumes
using Internet and Internet is one of the technologies that is ever spreading in customer community.
Almost 80% of the people in US already have internet connection. Mobile banking would be
another value added service that can be provided by financial institutions, it may only bring good
will.
Depending on the technological direction for enabling Mobile companies either has to spend
enormous amount of money in matching customer’s expectation or maintaining another stream of
technology applications. Technology still has security issues and software distribution issues.

TECHNOLOGICAL AND REGULATORY FACTORS
Information technology holds a promise to change the face of consumer banking in the next few
years through the convergence of banking and telecom players. Technology will become imperative
in banking for providing convenience in product delivery, increasing productivity and performance.
As mobile networks in India are upgraded with WAP, GPRS and UMTS to deliver next ‐generation
multimedia services, banks can provide a host of services on mobile phones and will have
immediate and full control over their finances. Customers will be able to view their account
statement, transfer funds between accounts, get instant notifications whenever they transact. Next
generation mobile banking services will deliver significant improvements with user ‐friendly icon
driven instructions, instant access, security and immediate transaction processing all at a lower cost.
Banks can also attain higher levels of customer satisfaction and increased loyalty by providing
anywhere, anytime banking. They will also benefit further from lower administrative costs, fewer
branches, reduced headcount, streamlined call centers and lower handling charges ‐ savings that,
hopefully, will be passed onto customers. Considering the far ‐reaching impact of certain
technologies, we should expect to see major shifts in the banking industry unlike any we have seen
before.
Impact of launch of 3G on mobile banking services

In India, the current 3G footprint is limited to the metros and urban/ semi ‐urban areas. In the short
run, 3G will only have an indirect impact as mobile banking services are not bandwidth intensive
and, thus, do not need high‐speed connectivity. However, soon enough, 3G will be a key factor in
mobile banking gaining traction. This is because it offers increased security protocols and more
bandwidth for secure mobile‐based transactions. Third generation technology will also drive the
uptake of smart‐phones which will enable more secure and user ‐friendly interfaces for mobile
banking applications.
Managing the network service provider relationship
By virtue of its very nature of operation, mobile banking brings a certain clash of interest with
respect to ownership of end customers and revenue sharing between network service providers and
financial institutions. Network service providers offer mobile services for users and often they also
provide heavily subsidized handsets. Financial institutions share a relationship with the customer in
terms of holding the account and credit card, owning the expertise to process transactions, and so
on. Given this scenario, it is obvious that the financial institution must clearly establish the
dynamics of the partnership, for business viability. Mobile banking solution providers would do
well to optimize the deployment mechanism to reduce dependency on network service providers, to
a viable minimum.
Prudent regulation: A key factor in future growth

A number of regulatory policies stymie mobile banking in India. Full ‐scale commercial
implementation of rural m‐banking is complex, as it requires a multitude of players, such as telecom
operators, m‐banking product developers, regulators and financial institutions to envisage and
coordinate delivery. In 2008, the Reserve Bank of India (RBI) laid out operating guidelines for
mobile banking transactions, which include methods for banks to collaborate with telecom
providers, strengthening the security framework and laying down common standards for completing
transactions. The Reserve Bank of India permitted only licensed banks with a physical bank
presence in India and bars non‐bank finance companies and microfinance institutions to launch
mobile banking. This disqualifies mobile network operators from offering their own service.
Services were restricted to customers of banks and holders of debit/credit cards issued as per RBI
guidelines.
The RBI has taken a step forward by removing the Rs 50,000 transaction limit through mobile
phones with a view to allow customers to transfer bigger amounts. However lenders may place per
transaction limits based on their own risk perception with the approval of their boards. RBI has also
allowed banks to appoint for‐profit banking correspondents (BC), including telecom operators and
limits relating to having the BC within a fixed distance of the bank have also been relaxed. The
regulation on mobile banking is moving in the right direction but the RBI should look at lowering
the entry cost. For example, the Know‐Your‐Customer (KYC) norms6 applicable to telecom
companies rather than banking KYC rules should be adequate for opening an account. It is
expensive for operators to comply
with these regulations especially when customer volumes have not stabilized. A few more enabling
regulations largely centered on unifying account opening and controls between operators and bank
will lower cost and increase viability. Increased viability will ensure faster scale ‐up and
proliferation of services. The regulator should define the extent to which mobile operators can
substitute or replicate services that banks traditionally offer.
The RBI has been reluctant to allow non‐banking players like telecom operators to carry out
banking operations and requires such services to be offered in partnership with the existing national
banks. These Issues need to be addressed on the policy and regulation front. Financial inclusion
reforms should also provide norms for mobile banking for the rural population. Stringent security
norms and a framework for preventing fraud are needed to change the perceived insecurity of
mobile banking transactions. The RBI has in the last few years, taken positive steps towards
facilitating interoperability among banks for mobile payment through the interbank mobile
payment. However, a more integrated approach and framework for mobile banking is the need of
the hour. The RBI still has some way to go in terms of facilitating the mobile ecosystem for growth

with an integrated framework. Policy‐makers and regulators face two ‐fold challenges regarding M ‐
banking:
First, to encourage banks and mobile operators to develop solutions that are not proprietary and
second, to allow access to potential new entrants who may disrupt the lucrative business models of
the banks and mobile operators.
The key challenge is to do this while at the same time ensuring high levels of security and trust. It is
important that mobile banking is not seen as a turf war between the financial and
telecommunication sectors but as something, that complements existing financial services.
TECHNOLOGIES BEHIND MOBILE BANKING

Technically speaking most of these services can be deployed using more than one channel.
Presently, Mobile Banking is being deployed using mobile applications developed on one of the
following four channels.
1. IVR (Interactive Voice Response)
2. SMS (Short Messaging Service)
3. WAP (Wireless Access Protocol)
4. Standalone Mobile Application Clients

I. IVR- Interactive Voice Response:
IVR or Interactive Voice Response service operates through pre-specified numbers that banks
advertise to their customers. Customer's make a call at the IVR number and are usually greeted
by a stored electronic message followed by a menu of different options. Customers can choose
options by pressing the corresponding number in their keypads, and are then read out the
corresponding information, mostly using a text to speech program.
Mobile banking based on IVR has some major limitations that they can be used only for Enquiry
based services. Also, IVR is more expensive as compared to other channels as it involves making
a voice call which is generally more expensive than sending an SMS or making data transfer (as
in WAP or Standalone clients).
One way to enable IVR is by deploying a PBX system that can host IVR dial plans. Banks
looking to go the low cost way should consider evaluating Asterisk, which is an open source
Linux PBX system.
II. SMS – Short Messaging Service:

SMS uses the popular text-messaging standard to enable mobile application based banking. The
way this works is that the customer requests for information by sending an SMS containing a
service command to a pre-specified number. The bank responds with a reply SMS containing the
specific information.
For example, customers of the HDFC Bank in India can get their account balance details by
sending the keyword ‘HDFCBAL' and receive their balance information again by SMS.
However there have been few instances where even transaction-based services have been made
available to customer using SMS. For instance, customers of the Centurion Bank of Punjab can
make fund transfer by sending the SMS ‘TRN (A/c No) (PIN No) (Amount)'.

One of the major reasons that transaction based services have not taken of on SMS is because of
concerns about security. The main advantage of deploying mobile applications over SMS is that
almost all mobile phones are SMS enabled.
An SMS based service is hosted on a SMS gateway that further connects to the Mobile service
providers SMS Centre. There are a couple of hosted IP based SMS gateways available in the
market and also some open source ones like Kannel.
(SMS Network Architecture)

III. WAP – Wireless Access Protocol:
WAP uses a concept similar to that used in Internet banking. Banks maintain WAP sites
which customer's access using a WAP compatible browser on their mobile phones. WAP
sites offer the familiar form based interface and can also implement security quite
effectively.
Bank of America offers a WAP based service channel to its customers in Hong Kong. The
banks customers can now have an anytime, anywhere access to a secure reliable service that
allows them to access all enquiry and transaction based services and also more complex
transaction like trade in securities through their phone A WAP based service requires
hosting a WAP gateway. Mobile Application users access the bank's site through the WAP
gateway to carry out transactions, much like internet users access a web portal for accessing
the banks services.
The following figure demonstrates the framework for enabling mobile applications over
WAP. The actually forms that go into a mobile application are stored on a WAP server, and
served on demand. The WAP Gateway forms an access point to the internet from the mobile
network.

(WAP Network Architecture for Mobile
Applications)
IV. Standalone Mobile Application Clients:

Standalone mobile applications are the ones that hold out the most promise as they are most
suitable to implement complex banking transactions like trading insecurities. They can be easily
customized according to the user interface complexity supported by the mobile. In addition,
mobile applications enable the implementation of a very secure and reliable channel of
communication.
One requirement of mobile applications clients is that they require to be downloaded on the
client device before they can be used, which further requires the mobile device to support one of
the many development environments like J2ME or Qualcomm's BREW. J2ME is fast becoming
an industry standard to deploy mobile applications and requires the mobile phone to support
Java. The major disadvantage of mobile application clients is that the applications needs to be
customized to each mobile phone on which it might finally run.
SMS BANKING
When people are hard pressed for time, the need for "anytime anywhere” is banking gains utmost
importance. Bearing this in mind, bank provides a novel service which gives retail customers
account information and real-time transaction capabilities from their cell phones. With SMS
banking the following services can be obtained:
 Get account balance details
 Request a cheque book

 Request last three transaction details
 Pay bills for electricity, mobile, insurance etc.
SMS banking Overview:

In order to avail the services mentioned above, a user subscribing to a wireless carrier sends an
SMS with a predefined code to the bulk service provider’s number.
The service provider forwards this message to the bank’s mobile banking applications. The
mobile banking applications interface with the core banking servers (that contain the user
account information) that service the request made by the user. The response is then sent by the
mobile banking applications to the bulk service provider who in turn forward it to the valid user
via SMS. Which is very well explaining in the following diagram?

There are two ways in which a bank can communicate with a customer using SMS:
1. In the first method the bank proactively sends data to customers in response to certain
transactions. For e.g. account to account transfer, salary credit and some promotional messages.
This data can be sent to the customer in two ways
a. E-mail to mobile (E2M):

In this method, the bank sends an email to the mobile banking application through a
specific email address. This email may consist of the message content together with
the mobile numbers of the customer. The mobile banking application in turn sends this
message in a specific format (for e.g. XML tags are part of a HTTP GET message
query string) to the service provider’s application server. From here on the information
from the XML tags is extracted and sent as a SMS to the wireless carrier which in turn

forwards this message to the customer.

b. Database to mobile (D2M):
Here a mobile banking application continuously polls the bank database server and
whenever a relevant event happens, for e.g. an account to account transfer, it forwards
the specific message to the service provider’s application server. The message format
may be the same as the one used in the E2M case. This message is then forwarded to
the wireless carrier which in turn forwards this message to the customer.
In the second method the bank sends data in response to specific customer query such
as account balance details. The customer first sends a pre-defined request code via
SMS to the Bulk SMS service provider’s registered mobile number. Depending on the
message code, the bulk SMS provider forwards the SMS to a PULL application in the
mobile banking server. The PULL application receives the request and forwards it to
the core banking application for further processing. The core banking server then
processes this message and sends the reply to the PULL application which in turn
forwards in to the customer via the service provider. As in the above cases the request
and the response for the PULL application may be a HTTP GET message with tags in
the query string.

MARKETING STRATEGY USED BY BANK VIA
MOBILE BANKING
SMS banking services are operated using both Push and Pull messages. Push messages are those
that the bank chooses to send out to a customer's mobile phone, without the customer initiating a
request for the information. Typically push messages could be either Mobile Marketing
messages or messages alerting an event which happens in the customer's bank account, such as a
large withdrawal of funds from the ATM or a large payment using the customer's credit card, etc.
Another type of push message is One-time password (OTPs). OTPs are the latest tool used by
financial and banking service providers in the fight against cyber fraud. Instead of relying on
traditional memorized passwords, OTPs are requested by consumers each time they want to
perform transactions using the online or mobile banking interface. When the request is received
the password is sent to the consumer’s phone via SMS. The password is expired once it has been
used or once its scheduled life-cycle has expired.
Pull messages are those that are initiated by the customer, using a mobile phone, for obtaining
information or performing a transaction in the bank account. Examples of pull messages for
information include an account balance inquiry, or requests for current information like currency
exchange rates and deposit interest rates, as published and updated by the bank .
The bank’s customer is empowered with the capability to select the list of activities (or alerts)
that he/she needs to be informed. This functionality to choose activities can be done either by
integrating to the Internet banking channel or through the bank’s customer service call Centre.

Typical Push & Pull Services offered under SMS banking
Depending on the selected extent of SMS banking transactions offered by the bank, a customer
can be authorized to carry out either non-financial transactions, or both and financial and non-
financial transactions. SMS banking solutions offer customers a range of functionality, classified
by Push and Pull services as outlined below.
Typical Push Services would include:

 Periodic account balance reporting (say at the end of month)
 Reporting of salary and other credits to the bank account
 Successful or unsuccessful execution of a standing order
 Successful payment of a cheque issued on the account;
 Insufficient funds
 Large value withdrawals on an account
 Large value withdrawals on the ATM or on a debit card
 Large value payment on a credit card or out of country activity on a credit card.
 One-time password and authentication
Typical Pull Services would include:

 Account balance inquiry
 Mini statement request
 Electronic bill payment

 Transfers between customer's own accounts, like moving money from a savings account
to a current account to fund a cheque
 Stop payment instruction on a cheque
 Requesting for an ATM card or credit card to be suspended
 De-activating a credit or debit card when it is lost or the PIN is known to be

compromised
 Foreign currency exchange rates inquiry
 Fixed deposit interest rate inquiry
Concerns & Skepticism about SMS Banking

Many banks would have some concerns when the prospects of introducing SMS banking are
discussed. Most of these concerns could revolve around security and operational controls around
SMS banking. However supporters of SMS claim that while SMS banking is not as secure as
other conventional banking channels, like the ATM and Internet banking, the SMS banking
channel is not intended to be used for very high-risk transactions.
The Convenience Factor

The convenience of executing simple transactions and sending out information or alerting a
customer on the mobile phone is often the overriding factor that dominates over the skeptics who
tend to be overly bitten by security concerns.
As a personalized end-user communication instrument, today mobile phones are perhaps the
easiest channel on which customers can be reached on the spot, as they carry the mobile phone
all the time no matter where they are. Besides, the operation of SMS banking functionality over
phone key instructions makes its use very simple. This is quite different to Internet banking

which can offer broader functionality, but has the limitation of use only when the customer has
access to a computer and the Internet. Also, urgent warning messages, such as SMS alerts, are
received by the
customer instantaneously; unlike other channels such as the post, email, Internet, telephone
banking, etc. on which a bank 's notifications to the customer involves the risk of delayed
delivery and response.
The SMS banking channel also acts as the bank’s means of alerting its customers, especially in
an emergency situation; e.g. when there is an ATM fraud happening in the region, the bank can
push a mass alert (although not subscribed by all customers) or automatically alert on an
individual basis when a predefined ‘abnormal’ transaction happens on a customer’s account
using the ATM or credit card. This capability mitigates the risk of fraud going unnoticed for a
long time and increases customer confidence in the bank’s information systems.
Compensating controls for lack of Encryption

The lack of encryption on SMS messages is an area of concern that is often discussed. This
concern sometimes arises within the group of the bank’s technology personnel, due their
familiarity and past experience with encryption on the ATM and other payment channels. The
lack of encryption is inherent to the SMS banking channel and several bank that use it have
overcome their fears by introducing compensating controls and limiting the scope of the SMS
banking application to where it offers an advantage over other channels. Suppliers of SMS
banking software solutions have found reliable means by which the security concerns can be
addressed. Typically the methods employed are by pre-registration and using security tokens
where the transaction risk is perceived to be high. Sometimes ATM type PINs are also employed
but the usage of PINs in SMS banking makes the customer's task more cumbersome.

Technologies Employed for SMS Banking
Most SMS banking solutions are add-on products and work with the bank’s existing host systems
deployed in its computer and communications environment. As most banks have multiple
backend hosts, the more advanced SMS banking systems are built to be able to work in a multi-
host banking environment; and to have open interfaces which allow for messaging between
existing banking host systems using industry or de-facto standards.
Well developed and mature SMS banking software solutions normally provide a robust control
environment and a flexible and scalable operating environment. These solutions are able to
connect seamlessly to multiple operators in the country of operation. Depending on the volume
of messages that are require to be pushed; means to connect to the SMS could be different, such
as using simple modems or connecting over leased line using low level communication
protocols. Advanced SMS banking solutions also cater to providing failover mechanisms and
least-cost routing options.

IMPACT OF DEMONETIZATION ON BANKING SECTOR AND
M-BANKING
Demonetization is a tool to battle Inflation, Black Money, Corruption and Crime, discourage a cash
dependent economy and help trade. Its policy of the government by banning Rs. 500 and Rs.100
currency notes has influenced all almost all the corner of the economy.
Hereby, analyzing the impact of demonetization on banking sector.
A study by Bhupal Singh and Indrajit Roy, RBI directors from the monetary policy department and
department of statistics and information management, published in August this year showed that the
excess deposits accrued to the banking system due to demonetization range between Rs 2.8-4.3
trillion.
“Excess deposit growth in the banking system during the demonetization period (i.e., November 11,
2016 to December 30, 2016) works out to 4-4.7 percentage points. If the period up to mid-February
2017 is taken into account to allow for some surge to taper off, excess deposit growth is in the range
of 3.3-4.2 percentage points.
The liquidity boost resulting from the demonetization announcement on November 8, 2016 has
stayed with the banking sector a year after the event, helping banks reduce their high-cost deposits
and boosting their current account and savings account (CASA) ratio.
CASA is abbreviation of current Account Savings Account. It is the ratio which indicates how
much of the total deposits with bank in the current account and savings account. In a simple
language, the deposits with the bank are in the current account and savings account. Banks do not
pay interest on the current account deposits and pays a very low% of interest on savings on account
deposits. Hence, it is a good measures to get deposits at no or very low cost.

Thus influences of demonetization are
• Increase in Deposits:
Demonetization has increased the deposits in Banks. Unaccounted money in the form of Rs.500 and
Rs.1000 were flowing to the Banks and the sizes of deposits have been increased. It helped the
banks to grab the deposits and increase their deposits.
Bulk of the deposits so mobilized by SCBs have been deployed in: (i) reverse repos of various
tenors with the RBI; and (ii) cash management bills (CMBs) issued under the Market Stabilization
Scheme (which is a part of investment in government securities in the balance sheet of banks).
Loans and advances extended by banks increased by Rs.1,008 billion. The incremental credit
deposit ratio for the period was only 18.2 per cent. Additional deposits mobilized by commercial
banks have been largely deployed in liquid assets.
• Fall in cost of Funds:
Over the past few months, the deposits are increased. It led the banks to keep a major part of
deposits in the form of cash deposits. PSU Banks have a lion share (over 70%) of the deposits and
biggest gainers of the rise in deposits, leading to lower cost of funds.
Surplus liquidity conditions have helped facilitate the transmission of monetary policy to market
interest rates. Post demonetization, several banks lowered their domestic term deposit rates and
lending rates. The median term deposit rates of SCBs declined by 38 bps during November 2016-
February 2017, while the weighted average term deposit rate of banks declined by 24 bps (up to
January 2017). Combined with the sharp increase in low cost CASA deposits, the overall cost of
borrowings declined, allowing banks to reduce their lending rates.
• Demand for Government Bonds:
After sharp rise in deposits on post demonetization, banks started lending such surplus deposits to
the RBI under the reverse repo options. PSU Banks, particularly, deployed excess funds in
government bonds. The return on bond investment is likely to add 15 to 20 per cent increase in the
earnings of banks.

• Sagginess in Lending:
Lending growth of the banks is considerably less even after demonetization and its impact of
growth in the amount of public deposit. Banks have tried to lend the money to the needy group by
reducing their interest rates, but it shrunk over the last few months.
Opening of Jan Dhan Account
Post-demonetization, 23.3 million new accounts were opened under the Pradhan Mantri Jan Dhan
Yojana (PMJDY), bulk of which (80 per cent) were with public sector banks. Of the new Jan Dhan
accounts opened, 53.6 per cent were in urban areas and 46.4 per cent in rural areas. Deposits under
PMJDY accounts increased significantly post demonetization. The total balance in PMJDY deposit
accounts peaked at Rs. 746 billion as on December 7, 2016 from Rs. 456 billion as on November 9,
2016 - an increase of 63.6 per cent. As there were reports regarding the use of these accounts to
convert black money into white, the Government issued a warning against the misuse of such
accounts.
Push to Digital Banking
A cashless economy is one in the flow of cash within an economy is non-existent and all
transactions have to be through electronic channels such as direct debit, credit and debit cards,
electronic clearing, payment systems such as Immediate Payment Service (IMPS), National
Electronic Funds Transfer and Real Time Gross Settlement in India.

Benefits of Cashless economy
• Reduced instances of tax avoidance because it is financial institutions based economy where
transaction trails are left.
• Curb generation of black money.
• IT will reduce real estate prices because of curbs on black money.
• It will place universal availability of banking services to all as no physical infrastructure is
needed other than digital.
• There will be greater efficiency in welfare programs as money is wired directly into
the accounts of recipients.
• Reduced cost of printing notes, instances of their soiled or becoming unusable, counterfeit
currency.
• Reduced costs of operating ATMs.
• Speed and satisfaction of operations for customers as no delays and queues, no interactions
with bank staff required.
Digital transaction platforms
• UPI:
Unified Payment Interface (UPI) allows you to make payments using your mobile phone as the
primary device for transactions, through the creation of a ‘virtual payment address’, which is an
alias for your bank account. UPI was launched by the National Payment Corporation of India
(NPCI).
• BHIM App:
The Bharat Interface for Money (BHIM) in an initiative by the Govt to enable fast, secure and
reliable cashless payments through mobile phones. BHIM is Aadhaar-enabled, interoperable with

other Unified Payment Interface (UPI) applications and bank accounts, and has been developed by
the National Payments Corporation of India (NPCI). This seals the government’s push towards
digital payments after the demonetization that resulted in the scrapping of high-value Rs 1,000 and
Rs 500 currency notes.
• Aadhar Pay:
There are lots of payment apps in the market. These are the UPI apps, SBI Pay, Paytm, Phonepe,
Freecharge, mobile wallets etc. But, the Adhaar Payment App is special as you can pay through the
Adhaar Payment App without phone. It is possible because you the customer does not require the
app. The merchant or a person, who want money, have to arrange a smartphone, app, etc. The payer
don’t require anything. This app is made for the merchants and shopkeepers. Customer would only
enjoy its benefits. The Adhaar Payment Appuses your fingerprints for the authentication. On the
basis of this authentication, the money ispaid from your Aadhaar linked account.
• IMPS:
Immediate Payment Service (IMPS) is an instant interbank electronic fund transfer service through
mobile phones. It is also being extended through other channels such as ATM, Internet Banking,
etc.
• POS terminals:
A point-of- sale (POS) terminal is a computerized replacement for a cash register. Much more
complex than the cash registers of even just a few years ago, the POS system can include the ability
to record and track customer orders, process credit and debit cards, connect to other systems in a
network, and manage inventory. Generally, a POS terminal has as its core a personal computer,
which is provided with application-specific programs and I/O devices for the particular environment
in which it will serve.

• USSD:
USSD (Unstructured Supplementary Service Data) is a Global System for Mobile(GSM)

Communication technology that is used to send text between a mobile phone and an application
program in the network. Applications may include prepaid roaming or mobile chatting.
Challenges of a cashless rural economy
• Currency dominated economy:

High level of cash circulation in India. Cash in circulation amounts to around 13 per cent of India’s
GDP.
• Transactions are mainly in cash:
Nearly 95 per cent of transactions take place in cash. Large size of informal/unorganized sector
entities and workers prefer cash based transactions. They don’t have required digital literacy.
• ATM use is mainly for cash withdrawals and not for settling online
transactions:
There are large number of ATM cards including around 21 crore Rupaya cards. But nearly 92 per
cent of ATM cards are used for cash withdrawals. Multiple holding of cards in urban and semi-
urban areas show low penetration.
• Limited availability of Point of Sale terminals:
According to RBI, there are 1.44 million PoS terminals installed by various banks across locations

at the end of July 2016. But most of them remain in urban/ semi-urban areas.
• Mobile internet penetration remains weak in rural India:
For settling transactions digitally, internet connection is needed. But in India, there is poor
connectivity in rural areas. In addition to this, a lower literacy level in poor and rural parts of the
country, make it problematic to push the use of plastic money on a wider scale. This is being
overcome by application BHIM (Bharat Interface for Money) launched by the Prime Minister
which will work on USSD i.e. without mobile connection.
Demonetization crippled rural bank lending
The note ban hurt rural India, loan growth was far below its pre-demonetization levels.
Indeed, in the second half of FY2017, bank lending to rural Haryana, Punjab, Goa, Maharashtra and
Kerala contracted. Lending to rural Maharashtra fell by as much as 9.2%. Putting that in
perspective, bank loans in the second half of FY16 to rural Haryana increased by 18% and to rural
Punjab by 12.2%, while rural Maharashtra saw an increase in lending of 5.8%. Not a single state
had showed a contraction in rural lending in the second half of FY16. In other words, the slowdown
in rural lending in the second half of FY17 was very abnormal and may be attributed largely to
demonetization.

The rural parts of western India bore the brunt, with credit growth falling by 5.1% in the second half
of FY17. Rural northern India and metropolitan western India also saw very low credit growth.
Nationalized banks’ credit growth was 2.7% in the FY17 second half, compared to 8.8% growth in
second half FY16. SBI and its associates saw their credit growth fall to 7.8% in the second half of
FY17 compared to 13.7% in the second half of the previous year. Private banks’ credit growth was
10.1% in the second half of FY17 compared to 18.8% in the year-ago period. Clearly, every
category of banks was affected.
The negative impacts are because of regulation, costs of demonetization, loss of opportunity and
short-term damage to economy
 The 100% cash reserve requirement (CRR) on incremental deposits meant that banks did not
earn any interest on Rs 3 lakhs crores of deposits for nearly a fortnight.
 The waiver of ATM charges would result in banks losing Rs 20 in every transaction.

 The waiver of merchant discount rate on cards would result in banks losing 1% in every card
transaction.
 Banks use third parties like cash logistics companies for cash transportation. Moving out Rs
15 lakh crore of currency notes and moving in Rs 7 lakh crore plus from currency chests
would have cost several thousand crores.
 As banks have been focused on exchanging currency notes, they have not been able to sell
any loan products.
 Some SME businesses have seen their sales drop 50–80% and could default in their
instalments. They won’t immediately be classified as NPAs because of some relaxations, but
if the delay persists bank NPAs might worsen.
 Uncertainty has resulted in drop in spending on high value items from credit cards. These
are the transactions which are converted into EMIs and banks earn from them.
Demonetization has led to the increase in the use of plastic cards, online Banking, opening
of new accounts, and number of customers in the branches and the use of ATM.

IMPACT OF GOVERNMENT POLICIES AND INITIATIVES i.e.
DIGITAL INDIA, etc. ON M-BANKING
The first measure to regulate mobile banking in India were taken in October, 2008. Since then, we
have progressively liberalized the manner and extent to which banks can conduct mobile banking;
alive to the needs of the market, in particular, the unbanked population and the migrant labour force
within the country. Today, banks in India are permitted to facilitate funds transfer between bank
accounts through a mobile phone. To enable such transfers in a cost-effective manner particularly
for the small ticket transactions, we have waived the need for end-to-end encryption for transactions
of value up to Rs. 5000 (around USD100).We have also enabled money transfers from a bank
account with cash pay-out to the receiver at an ATM or a Business Correspondent with a cap on the
transaction value. To enhance the efficiency of the mobile banking system, we had approved a
unique initiative, the Inter Bank Mobile Payment System (IMPS) which provides a centralized
interoperable infrastructure and enables money transfers between customer accounts in different
banks through mobile phones in real time. This service rides on the existing National Financial
Switch (NFS) Interbank ATM transaction switching infrastructure and message format – and hence
easy for banks to adopt
Indian Banking Industry has been significantly benefitted from the Policies & Initiatives of
Government. Govt. of India has introduced many Policies which has been proved significant for
revival and growth of Indian Banking Industry.
PRADHAN MANTRI JAN DHAN YOJANA
PMJDY is National Mission for Financial Inclusion to ensure access to financial services, namely
Banking Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable
manner. This financial inclusion campaign was launched by the Prime Minister of India on 28
August 2014.

DIRECT BENEFIT TRANSFER
Direct Benefit Transfer or DBT is an attempt to change the mechanism of transferring subsidies
launched by Government of India on 1 January 2013. This program aims to transfer subsidies
directly to the people through their bank accounts. It is hoped that crediting subsidies into bank
accounts will reduce leakages, delays, etc. The purpose of Direct Benefits Transfer is to ensure that
benefits go to individuals' bank accounts electronically, minimizing tiers involved in fund flow
thereby reducing delay in payment, ensuring accurate targeting of the beneficiary and curbing
pilferage and duplication.
ATAL PENSION YOJANA
ATAL PENSION YOJANA (APY) was launched on 1st June, 2015. Atal Pension Yojana (APY)
will provide a defined pension, depending on the contribution, and its period. The main focus of
APY will be on all citizens in the unorganized sector, who join the National Pension System (NPS)
administered by the Pension Fund Regulatory and Development Authority (PFRDA). Under the
APY, the subscribers would receive the fixed minimum pension of Rs. 1000 per month, Rs. 2000
per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years,
depending on their contributions, which itself would be based on the age of joining the APY. The
minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum
period of contribution by any subscriber under APY would be 20 years or more. The benefit of
fixed minimum pension would be guaranteed by the Government.
PRADHAN MANTRI MUDRA LOAN YOJANA
Micro Units Development & Refinance Agency Ltd. (MUDRA) is a new institution set up by
Government of India to provide funding to the non-corporate, non-farm sector income generating
activities of micro and small enterprises whose credit needs are below ₹10 Lakh. Pradhan Mantri
MUDRA Yojana (PMMY), MUDRA has created three products i.e. 'Shishu', 'Kishore' and “Tarun”
as per the stage of growth and funding needs of the beneficiary micro unit. These schemes cover
loan amounts as below:
 Shishu: covering loans up to Rupees 50,000
 Kishore: covering loans above Rupees 50,000 and up to Rupees 5,00,000
 Tarun: covering loans above Rupees 5,00,000 and up to Rupees10,00,000
All Non-Corporate Small Business Segment (NCSBS) comprising of proprietorship or partnership

firms running as small manufacturing units, service sector units, shopkeepers, fruits/vegetable
vendors, truck operators, food-service units, repair shops, machine operators, small industries, food
processors and others in rural and urban areas, are eligible for assistance under Mudra. Bank
branches would facilitate loans under Mudra scheme as per customer requirements. Loans under
this scheme are collateral free loans.
PRADHAN MANTRI SURAKSHA BIMA YOJANA
Pradhan Mantri Suraksha Bima Yojana is a government-backed accident insurance scheme in India.
It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015,
only 20% of India's population has any kind of insurance, this scheme aims to increase the numbers.
This scheme is available to people between 18 and 70 years of age with bank accounts. It has an
annual premium of Rs, 12 (18¢ US) excluding service tax, which is about 14% of the premium. The
amount will be automatically debited from the account. In case of accidental death or full disability,
the payment to the nominee will be Rs. 2 lakh (US$3,000) and in case of partial Permanent
disability Rs. 1 lakh (US$1,500). his scheme will be linked to the bank accounts opened under the
Pradhan Mantri Jan Dhan Yojana scheme. It has been witnessed from all above mentioned schemes
introduced and implemented by Government of India has resulted in blessings for Banking Sector.

TRENDS IN MOBILE BANKING
The advent of the Internet has revolutionized the way the financial services industry conducts
business, empowering organizations with new business models and new ways to offer 24x7
accessibility to their customers.
The ability to offer financial transactions online has also created new players in the financial
services industry, such as online banks, online brokers and wealth managers who offer personalized
services, although such players still account for a tiny percentage of the industry.
Over the last few years, the mobile and wireless market has been one of the fastest growing markets
in the world and it is still growing at a rapid pace. According to the GSM Association and Ovum,
the number of mobile subscribers exceeded 2 billion in September 2005, and now exceeds 2.5
billion (of which more than 2 billion are GSM).
According to a study by financial consultancy Celent, 35% of online banking households will be
using mobile banking by 2025, up from less than 1% today. Upwards of 70% of bank center call
volume is projected to come from mobile phones. Mobile banking will eventually allow users to
make payments at the physical point of sale. "Mobile contactless payments” will make up 20% of
the contactless market by 2025.
Many believe that mobile users have just started to fully utilize the data capabilities in their mobile
phones. In Asian countries like China, Bangladesh, Indonesia and Philippines, where mobile
infrastructure is comparatively better than the fixed-line infrastructure, and in European countries,
where mobile phone penetration is very high (at least 80% of consumers use a mobile phone),
mobile banking is likely to appeal even more.
This opens up huge markets for financial institutions interested in offering value added services.
With mobile technology, banks can offer a wide range of services to their customers such as doing
funds transfer while travelling, receiving online updates of stock price or even performing stock
trading while being stuck in traffic. According to the German mobile operator Mobilcom, mobile
banking will be the "killer application" for the next generation of mobile technology.

Mobile devices, especially smartphones, are the most promising way to reach the masses and to
create “stickiness” among current customers, due to their ability to provide services anytime,
anywhere, high rate of penetration and potential to grow. According to Gartner, shipment of
smartphones is growing fast, and should top 20 million units (of over 800 million sold) in 2015
alone.
In the last 4 years, banks across the globe have invested billions of dollars to build sophisticated
internet banking capabilities. As the trend is shifting to mobile banking, there is a challenge for
CIOs and CTOs of these banks to decide on how to leverage their investment in internet banking
and offer mobile banking, in the shortest possible time.
The proliferation of the 5G (Fifth generation of wireless) and widespread implementation expected
for 2020–2025 will generate the development of more sophisticated services such as multimedia
and links to m-commerce services.

WHAT WILL BE FUTURE OF MOBILE BANKING?
Mobile banking is the future because of its cost effectiveness and ability to reach out to customers
in remote areas. It will take 5-6 years for the model to mature. In US, Europe, phones with NFC
(near field communication) have entered the market. NFC is a chip embedded in a phone enabling
the phone to interact with a point of sales terminal (with this, phone can act as a virtual credit card).
Cheque truncation can be done via mobile phones. In US it is called 'Cheque 21' or 21st century
cheque payment. Not yet available in India. Banks will be able to approve and give loans via mobile
banking within the next five years. This will further reduce the need to go to a branch.
Payment on approval by SMS

This feature allows for joint accounts or business account to have a pre-determined limit to prompt
for either supervisor or joint account holder approval. A payment request is made from the account
to another pre-nominated account; a message is then send to either the supervisor or joint account
holder to also approve the payment.
Two-stage confirmed payment
This payment process is similar to a letter of credit, when the end user sends a payment instruction
for goods or services, the amount of the payment will be transferred to a specific account. The
beneficiary will be notified that the amount is guaranteed. Once the goods or services are delivered
the end user/payee will be able to accept or reject the goods/services and make payment accordingly
by approving or denying the payment process.
Mobile Payment in Retail Outlets

Using nothing but their own mobile handset, consumers will be able to make purchased at a wide
variety of retail outlets. Let's use the supermarket as a common example: the consumer needs to
make a purchase from a supermarket, he/she goes to the cashier and sends a payment request along
with his/her password and the specific POS machine number. The system will then send back a
Digital Money Sequence Number (DMSN) to the buyer. When asking to pay for the goods, the
cashier will use his/her special banking card, and when the buyer is asked for a password all they
need to do is enter the DMSN. As long as the transaction is within the daily limit of the account the
transaction will take place instantly.

METHODOLOGY
The research study is Exploratory in nature. In this study, a combination of primary & secondary
data has been used.
Primary Data:
Primary data is used in the form of questionnaire method, which has been created using Google
Forms & distributed among internet & social media users. The study is been carried out by taking a
survey of 100-150 respondents as a sample size whose data will be available in the structured form
of questionnaire collected in terms of different questions influencing the use of digital form of
money transaction.
Once the findings are finalized by a research, i.e. the data collected from questionnaire will be
tabulated and analyzed in the form of charts, pie diagrams, graphs etc. leading to final result.
Secondary Data:
In addition to primary data secondary data has been used to support the study. The main sources of
secondary data is the combination of information from the internet, different websites, financial
blogs, newspapers & articles, reference books.

QUESTINNAIRE
 Name
 Gender
 Male
 Female
 Age Group
 18-25
 26-35
 36-45
 46-60
 61 and above
 What is your occupation?

 Professional
 Businessman
 Student
 House Wife
 Retired
 Other
 Are you aware of M-Banking Services?

 Yes
 No
 Do you use M-Banking Services?

 Yes
 No
 If the above option is No, specify the reason.

 Never Heard of Internet Banking
 Concerned about security
 Not available at my Bank
 Do not have enough knowledge
 What is the type of bank, you have an internet banking account with?
 Public Sector Bank
 Private Sector Bank
 What is the most important reason that you chose this particular bank?
 The Brand name of the Bank
 The excellent service offered by the banks
 Easy to access
 How long have you been using M-banking services?

 Less than a month
 1-6 months
 6-12 months
 More than a year
 What is the frequency of usage of M-Banking?

 5-6 times per week
 2-3 times per week
 Once in a week
 Once in a month
 Occasionally
 How do you transfer you money?

 Paytm, Freecharge, Google Pay, PhonePe or any other similar apps
 Net Banking

 Visiting Banks(Manually)
 Bank Specific Apps – SBI-YONO, CANARA – CanMobile or any other similar app
 Local Vendor (Service Provider)
 Are you satisfied with your M-Banking services?

 Yes
 No
DATA ANALYSIS AND INTERPRETATION
This pie diagram represents the number of people who are aware of the mobile banking services.
From this pie diagram we can see that Indians are well aware of the services such as mobile
banking which are provided by banks to them. A service such as mobile banking is definitely not
a new concept to the Indian people.
They are responsive and are appreciative of the bank efforts to lighten the load on branches and
subsidiaries.
This pie diagram represents the number of people who have use mobile banking.
This diagram shows us that the Indian people are still unaware and do not prefer to venture into

banking using mobile phones. They believe that threading on unknown territory can be harmful
and can lead to huge losses due to fraud or theft.
To get over this notion the Indian public needs some evidence to prove that mobile banking is safe
and secure and the only evidence are the people who constantly use such a facility.
This pie diagram represents the number of people who do not prefer to use mobile banking
services over traditional banking methods.
From this diagram it is quite clear that people are still wary about mobile banking. They still
prefer to bank using traditional methods of banking because they have full confidence in those
methods. The main reason for the fall of mobile banking graph is that people believe that
banking through mobile phone is risky and that it can lead to information falling into the wrong
hands. However with new and improved security measures like encryption, and password
protected services all the risks and worries can be wiped away.
This pie diagram represents the number of people who have have their internet banking account in
either public sector banks or private sector bank.
Be it a public sector bank or a private sector bank mobile banking is available in all the banks.

This pie diagram represents the reason why people select that particular bank, because of the brand
name of the bank, the excellent services offered by this bank or easy to access.
We can see in the diagram, most of the people select their banks because of the excellent services
provided by that particular bank. And then they look for the easy access services provided by the
bank and people are not concerned by the brand name of the bank.
This pie diagram represents the number of people using mobile banking services and for how
long they have been using it.
This shows that the Indian people are constantly on the move. Therefore mobile banking is
definitely used by them so that they can opt for it whenever they require. Even though they may
prefer the traditional method of banking to the mobile banking facility, the people want to keep
their options open at the time of need, and hence they use it very often.

This pie diagram represents the frequency of usage of mobile banking. As we can see in this
diagram about large number of people are using M-banking 5 to 6 times a week.
It means that Indian people are quite on the verge of being developed and frequently using M-
banking services.
This pie diagram represents the number of people who use different modes to transfer their money
from bank or to bank.

In the diagram we can see, a large number of people are using mobile banking applications like
Paytm, google pay, free charge or any other similar applications. Through this diagram we can
understand that a large number of people feel it safe to use M-banking services.

This pie diagram represents number of people satisfied with the M-Banking Services. In the
diagram we can see majority of people are satisfied.
After more research we come to know that majority of people are now well versed with the M-
Banking facilities and that leads to decrease in footfalls in bank and also hey try to avoid visit
branch. With the easy available Internet connection and 4G technology people are using M-Banking
services in every possible occasion.
CONCLUSION
With the rapid development of transport and communication, people and services are
coming together as if they were just around the corner. If this is the case for many services, then
why should the banking industry lag behind?
Internet banking, phone banking, e-banking and now mobile banking all enable the bank
to be better connected with the customer and vice versa. A customer who is provided with a
variety of additional services feels appreciated and is more likely to be loyal to that bank, which
is always a good sign for a bank.
In the end mobile banking not only helps a bank to reduce costs but also helps it to retain
its valuable customers. And as far as customers are concerned, this facility enables the customer
to bank anywhere, at any time and in any condition, definitely a boon if a customer is stuck in
the middle of nowhere and requires banking services as soon as possible.

Thus mobile banking helps both, the customer as well as the bank, to lighten the burden
of today’s world and to save time, money and energy which is greatly required and appreciated.
In a competitive world where everyone is waiting to outdo the other, a helping hand, in whatever
forms and from whatever source, is definitely god sent and should not go unrecognized.
Mobile banking provides the promise of expanding both the quality of banking services and
reach of banking services in a large country like India in a cost ‐effective manner. Using a consumer
level survey, we investigated consumer needs that triggers adoption and barriers than serve to limit
adoption of mobile banking. We also evaluated the satisfaction with mobile banking and how
adoption of mobile banking changes usage of traditional banking services.
Banks can do more to instill awareness of their mobile banking services to increase
adoption. Customers seem to learn more about mobile banking from friends and relatives than from
the banks themselves. Given that trust and word of mouth are likely to be useful in the adoption of
services, small referral incentives may accelerate the shift to mobile banking. Given the lower costs
of services through mobile banking, even when bank branches are present, it is in the bank’s interest
to encourage such adoption. Banks may also wish to partner with mobile phone service providers to
have apps installed on handsets that makes it easier to access banking services through the phone.
Given the fairly high levels of satisfaction with mobile banking services, relative to traditional
banking services, the shift may not only be favorable in terms of costs, but also in terms of customer
satisfaction and retention. Mobile banking might therefore truly be a win ‐win for banks and
customers. Lower SECs have lower rates of adoption of mobile banking services. However closer
inspection reveals that this is not due to lack of interest and resistance to adopt new behaviors, but
due to lack of access to the complementary infrastructure of smart phones and 3G services. Given
that prices of smart phones are expected to plummet, and 3G penetration are likely to expand
dramatically, there is substantial latent demand waiting to be filled. Banks that are well ‐prepared to
leverage and deal with this potential explosion in demand are poised to gain substantial market
share over the next few years

BIBLIOGRAPHY
Websites:
 https://www.researchgate.net/publication/305703732
 https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=8992
 http://www.sundaytimes.lk/090712/Financial Times/ft323.html
 http://www.infodev.org/files/3014_file_infoDev.Report_m_Commerce_January.2006.pdf
 http://www.mobilegroove.com/mobile-banking-apps-convenience-triggers-shift-
userbehavior/
 http://indianexpress.com/article/technology/mobile-tabs/smartphone-usage-drives-
mobilebanking-numbers.
 http://www.arraydev.com/commerce/JIBC/0306-04.htm
Research Reports:
 A Study on M-Banking and its impact on customer’s Banking Transactions: A Comparative

Analysis of Public and Private sector bank in India – By Nidhi Singh and Neena Sinha.
 M-Services in India: A Study on Mobile banking and applications – Nisha Sharma and
Rupinderdeep Kaur.
Books:
 E-Banking Management: Issues, Solutions and Strategies by Mahmood Shah and Steve
Clarke.
Survey sources:
 Family, Friends and Others (Majority People of Thane).

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A PROJECT REPORT ON

IMPACT OF MOBILE BANKING (M- BANKING) ON BANKING

RAVAKSHI DEEPAK CHHEDA

BACHELOR OF MANAGEMENT STUDIES

NAME OF PROJECT GUIDE

Prof. SOUMIK CHATTAPADHYAY

MSG-SGKM College of Arts, Science & Commerce,

ACADEMIC YEAR “2018-2019”

IMPACT OF MOBILE BANKING (M- BANKING) ON BANKING

BACHELOR OF MANAGEMENT STUDIES

Submitted In Partial Fulfillment Of The Requirement

MANAGED BY: SOUMIK CHATTAPADHYAY

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

I, RAVAKSHI DEEPAK CHHEDA the student of Bachelor of

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

This is to certify that MS. RAVAKSHI DEEPAK CHHEDA

IMPACT OF MOBILE BANKING (M-BANKING) ON BANKING SECTOR

This work is being submitted by MS. RAVAKSHI DEEPAK CHHEDA towards

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

2 Objective of the study

3 Scope of the study

4 Limitation of the study

8 Indian Banking and Cellular Market

9 Mobile Banking in India today

14 Technological and regulatory factors impacting future growth

15 Technologies behind Mobile Banking

16 Marketing strategies used by banks via Mobile Banking

17 Impact of Demonetization on Banking Sector and M-Banking

18 Impact of Government Policies and Initiatives i.e. Digital India, etc. on M-

19 Who is using M-Banking today?

20 What will be the future of mobile banking?

22 Data Analysis and Data Interpretation

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

 To find how often people use these services.

 To find out how this service is having its future growth.

 To study the acceptance of mobile banking applications.

 To study the M-Banking trends.

 A study on impact of demonetization on Banking sector and M-Banking.

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

1. Introduction to mobile banking

2. Advantages & Disadvantages

3. Mobile Banking in India today

4. Technological and Regulatory Factors Impacting future growth

5. Impact of Demonetization on Banking sector and M-Banking

6. Who is Using M-Banking today?

7. What will be the future of M-Banking?

10. Survey to find out the awareness

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

4. Lack of information pertaining to the various angles of the report.

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

Smartphones changed everything

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

Brick and mortar branch network:

Automatic Teller Machines (ATMs)

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE

MSG-SGKM COLLEGE OF ARTS, SCIENCE AND COMMERCE