The department of telecommunication (DoT) is planning to approach the Reserve Bank of India (RBI) for further guidelines on mobile banking. The department seeks this consultation to provide complete mobile banking services to the customers.

Although RBI has recently announced certain guidelines, only banks that are licensed and supervised in India and have a physical presence in the country can offer mobile services and only Rupee-based domestic payments are allowed. The new DoT move is likely to allow customers to use their cell phones as a debit or credit card.

The department has not yet taken any steps to link telephone networks to banking services, but is eager as it will enhance revenues along with providing more value to telephone customers. A senior DoT officer said, "These services can increase the share of value-added services from the existing 7-8% of total revenues from the sector to almost about 25% which is the case in the developed countries." The discussion regarding the matter was held between the 13th Finance Commission team and DoT officials on September 18th, 2008.

DoT has informed the Finance Commission's team that revenues from auction of spectrum for 3G and BWA services could go up to Rs 30,000 crore. The 13th Finance Commission has also asked DoT to give anticipated revenues from the telecom sector for the period 2010-15.

Romal Shetty, Director at KPMG India believes that the new proposal would ease banking services to customers. "So far, consumers can make only a few basic transactions through the mobile, but this will mean using your mobile as your credit or debit card. All you have to do is to send a message to make a payment," he said.

Presently mobile commerce in the country has been restricted to basic banking transactions like account information, purchase of travel tickets and payment of some utility bills. Sanjiv Mittal, Vice-Chairman, Bharti Telesoft, that provides mobile banking facility to the customers in association with Barclays Bank feels that both, banking and telecom industry, will have to come together to make mobile commerce a success in India. "There are certain laws to be considered regarding money remittances. Considering the IT security condition, coming together of both is a good sign," he said.

Vodafone in collaboration with HDFC Bank, ABN AMRO and Kotak Mahindra Bank also offers services like bank balance inquiry, requesting for cheque book, making stop payment etc. An official from Vodafone said, "Mobile banking is necessary to create access to the remotest of areas. Any kind of convergence is good for promoting mobile commerce. There is nothing better than both the systems coming together to provide a framework."

This new initiative would change the entire face of banking in India. Mr Shetty said, "If the ministry takes up the matter with the RBI, it will definitely speed up the process. It will not only help the mobile users but will boost banks and even mobile operators to grow further."

The new model of mobile banking is going to make our lives easier by availing the banking services in our hands.