MOBILE BANKING: AN OUTLOOK FOR NEW DIGITAL

PAYMENT SYSTEM IN INDIA

DINESH JOSHI
ASST. PROFESSOR
DEPARTMENT OF COMMERCE
GOVERNMENT DEGREE, KANDA,
BAGESHWAR, UTTARAKHAND

ABSTRACT

Mobile banking is very convenient in today’s age with many banks offering impressive apps.
Recently, the demands and requirements of banking consumers are altering quickly with the rise
in the technological avenues made available in the banking world. Banking customers have
started demanding flawless, multi-channel service experiences. And current generation is using
mobile banking in a very effective way. Due to advancement of technical world now mobile
banking drastically changes the life of every individual. Government and banks are requesting
the customers to use mobile banking instead of going to banks as well as for purchasing.
Customers feel that banking transactions are safe through mobile banking. It can be observed
that customers feel that it’s not too difficult to use. As per the study Balance enquiry and account
information are the most commonly used service in mobile banking. Majority of customer feel
that service charges on mobile banking are reasonable. As the study suggest that most of the
bank needs to improve on mobile banking. Mobile banking is most commonly adopted by
professionals. Most of them are satisfied with mobile banking application. Among the different
service provided by the bank, ATM, e-banking and mobile banking are the most commonly used
service compared to others. Even lots of people do not prefer mobile banking because of security
reasons, and lack of technical know-how. But the advancement of mobile banking makes life
easier mainly for financial matters, due to which the customer is now saving his time.

KEYWORDS
Advancement, mobile banking, ATM.
INTRODUCTION
Banking in India has a very long history starting from the late 18 th century. The origin of
modern banking stated from 1770 in the name of “bank of Hindustan” by English agency ‘house
of Alexander & co’ in Kolkata however it was closed in 1832. Further in 1786 “general bank of
India” was started and it failed in 1791.Presidency banks- these banks were funded by the
presidency government at that time. 1- Bank of Bengal-esta-in 1806,2-bank of Bombay- esta. In
1840, 3- bank of madras- esta in 1843.
SOME OLD BANKS:
(a) Allahabad bank-1865
(b) Oudh commercial bank- 1881
(c) Punjab national bank- 1895
(d) Canada bank-1906
(e) Bank of baroda-1908

Banking in India in the modern sense is originated in the last decades of the 18th century. The
Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. The
scheduled banks are those which defined under the 2nd Schedule of the RBI Act, 1934. The
scheduled banks are further classified into: Nationalized banks; State Bank of and its associates;
Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks. The term
commercial banks refer to both scheduled and non-scheduled commercial banks which are
regulated under the banking Regulation act, 1949.Generally banking in India was fairly mature
in terms of supply, product range and reach – even though reach in rural India and to the poor
still remains a challenge. The government has developed initiatives through the state Bank of
India expanding its branch network and the National Bank for Agriculture and Rural
Development with things like Microfinance, cooperative society

MOBILE BANKING

In a layman’s context, the term mobile banking means;“Execution of banking and financial
transactions using a mobile phone” Mobile banking is the act of doing financial transactions on a
mobile device (cell phone, tablet, etc ).and using software usually called an app provided by the
financial institution for the purpose. Mobile banking is usually available on a 24 hours’ basis.
This activity can be as simple as bank sending fraud or usage activity to a client paying bills of
sending money abroad. Advantages to mobile banking include security concerns and a limited
range of capabilities when compared to banking in person or on a computer. Some financial
institutions have restricted on which accounts may be accessed through mobile banking as well
as a limit on the Amount that’s can be transacted. The facilities available via mobile banking are
as follows:
 Checking account balance
 Fund transfer
 Mobile recharge
 E-fixed deposit
 Sms alerts
 Blocking of ATM cards
 Merchant banking
 Bill payments
 Balance enquiry
 Cheque book request
 E-commerce (shopping) on mobile

STATEMENT OF THE PROBLEM

Mobile banking would as into new era. Established practices and procedures have undergone
changes drastically. This is bound to change the nature of relationships of banks with their
customers. Customers would no longer be dependent on dedicated systems for each banking
relationship. This would be increasing access to low cost electronic service and close integration
of bank with web-based service. For performing transactions, mobile phones are most
convenient due to lower switching cost, low price that eliminate geographic boundaries.
It would be offer the opportunity of a new paradigm to the customers both corporate and retail.

OBJECTIVES
1. To know the factors that leads to mobile banking than conventional banking.
2. To know the various mobile banking services offered by banks.
3. To understand the concept of mobile banking.
4. To identify the problems and difficulties faced by mobile banking.

RESEARCH METHODOGY

This study uses primary data and secondary data. Mainly data is collected through
primary source in this study secondary source is collected from various sources such as:
 Newspaper
 Social media
 Internet
 Books
ANALYSIS

SAFETY OF MOBILE BANKING

CRITERIA NO OF RESPONDENTS PERCENTAGE

YES 35 70%
NO 10 20%
CANNOT SAY 5 10%
TOTAL 50 100%

It can be observed that 71% of respondents feel that their banking transactions are safe in mobile
banking. 14% feel insure and 15 % not responded

DIFFICULTY TO TRANSACT USING MOBILE BANKING

CRETERIA NO OF RESPONDENTS PERCENTAGE

SIMPLE 20 40%
MODERATE 10 20%
DIFFICULT 12 24%
EXTREMELY DIFFICULT 8 16%
TOTAL 50 100%
From Above Table 40% Respondents As Simple,20% Moderate,24% Find Difficult

MOBILE BANKING FACILITIES USED BY RESPONDENTS

CRETERIA NO OF RESPONDENTS PERCENTAGE
E-RECHARGE 18 36%

FUND TRANSFER 12 24%

PAYMENT 8 16%

BALANCE ENQUIRY 12 24%

TOTAL 50 100%

Maximum respondents are using mobile banking for e-recharge enquiry.

NEEDS OF IMPROVEMENT ON MOBILE BANKING

CRETERIA NO OF RESPONDENTS PERCENTAGE

YES 38 76%

NO 12 24%

TOTAL 50 100%

CONFIDENCE IN MAKING FUND TRANSFER AND PAYMENT

CRETERIA NO OF RESPONDENTS PERCENTAGE

CONFIDENT 25 50%

VERY CONFIDENT 5 10%

LESS CONFIDENT 20 40%

TOTAL 50 100%

From the above table it is clear that 50% of respondents are confident in making e-recharge.

REASONABLE SERVICE CHARGES

CRETERIA NO OF RESPONDENTS PERCENTAGE
YES 40 80%

NO 10 20%

TOTAL 50 100%
From the above table it is clear that 80% of respondents are of the opinion that service charges
on mobile banking are reasonable.

REASON FOR USING MOBILE BANKING

CRITERIA NO OF RESPONDENTS PERCENTAGE

EASY 15 30%
CONVENIENCE 25 50%
SECURITY 10 20%
TOTAL 50 100%
maximum respondents are using mobile banking due to convenience and 30% respondents
think digital payment system is easy and 20% respondents thinks its secure.

SUGGESTIONS

1. Banking operations through Mobile Banking should be cost effective

2. Authenticity and safety of operation should be ensured by Bank.
3. Proper guidelines should be given to the customers regarding usage of Mobile Banking
4. The banks must ensure to update the software and more services through Mobile Banking.
5. There should be call centre feedback.
6. Social media monitoring.
7. App store reviews monitoring.
8. Create awareness of useful applications among young consumers.

CONCLUSION

Mobile banking has already evolved as a powerful intermediate towards efficient and real-time
banking service. The banks and the mobile banking service providers are working their way
towards increasing consumer’s acceptance with mobile devices. The mobile banking and
payments ecosystem is complex and dynamic. It is not clear who will emerge as the winner in
the growing space from a financial services, application provider or technology perspective.
Security and the perception of security will clearly play a role in who ends up dominating.
Government and banks urging the customers to use mobile banking instead of going to banks as
well as for purchasing. As per the study Balance enquiry and account information are the most
commonly used service in mobile banking. Majority of customer feel that service charges on
mobile banking are reasonable. Customers feel that banking transactions are safe through mobile
banking. Most of them are satisfied with mobile banking application. Among the different
service provided by the bank, ATM and mobile banking are the most commonly used service
compared to others. A minority of people do not prefer mobile banking because of security fears,
so that every individuals will prefer mobile banking.
REFERENCES

1. Co-operative banking - Indian Institute of Banking and Finance

2. geoge sebin,(2016), mobile banking in the present scenario (vol.7)
3. The Evolution of Banking - Robert Harrison.
4. http://www.marketsimplified.com
5. www.investinganswers.com
6. http://ijrcm.org.in