H R Khan, the deputy governor of The Reserve Bank Of India recently hinted that the mobile banking in India has failed to take off in India. Due to this the banks and mobile companies have been told to work together for the benefit of their customers.
Khan at a seminar in Bhubaneshwar said that the growth rate in value and the volume of mobile based transactions is much lower compared to the number of bank accounts and number of mobile subscribers. The mobile transactions is where the customers can under take banking transactions with the help of mobile phones involving credit or debit to their account.
Khan said that this indicates that the banks are yet to fully exploit this technology even for their existing customers. In May 2012, about 3.34 transactions are concluded for Rs. 2.86 bn through mobile against Rs. 1.28 mn transactions of Rs. 0.91 bn in the month of May 2011.
The deputy governor said, “This growth rate is low compared to the number of bank accounts and the vast mobile subscriber base of more than 900 mn”. Khan added that the Reserve Bank Of India has also provided policy framework for a collaborative relationship between the banks and the telecom operators which has not worked.