It has been found that after two years of allowing banks to use mobile banking technology for intra bank transactions, the output produced is quite low. All the 18 participating banks have together generated transactions worth only Rs 4 lakh which is an unfortunate low figure.

Commenting on the condition, K C Chakraborty, deputy governor of RBI said that the idea is still in nascent stage and customers still need to get aquainted to it and become aware of mobile banking.

Mobile banking services were allowed to 18 banks by the RBI in 2008 which included SBI, ICICI Bank, Bank of India, HDFC Bank, Axis Bank and Union Bank of India, among others.

"As on date, only four lakh intra-bank mobile transactions are happening on an average every month," said Chakrabarty.

He said that out of 4 lakh transactions per month, three lakh have been done by one bank only while there are banks which have reported average transactions as low as two in a month.

"The average cost of banking has not come down and, hence, it is a chicken and egg situation where we can't get volumes till cost comes down and cost will not come down till volumes are achieved," Chakrabarty said.

AP Hota, chief executive officer of National Payment Corporation of India (NPCI) said that the national payment gateway provider is working on a pilot project on inter bank mobile banking platform. "We are doing the pilot with four banks, namely SBI, ICICI Bank, Bank of India and Union Bank of India. Once three more banks - Axis Bank, HDFC Bank and Yes Bank - get RBI nod, we will launch this platform in October officially," Hota said.