Nokia- one of the leading mobile manufacturers and suppliers has plans to start its mobile banking service in India. The service would hit the market in the name of Nokia Money, reported a Nokia official.

A pilot study on the start up of this new service was launched by the company in Pune in February. The official reported that the study has received an "extremely encouraging" response. The company has undergone the pilot study in a tie up with Yes Bank.

It now plans to have more tie ups of the kind with other banks so as to start on with the service in different parts of the subcontinent.

"A decision will be taken after the six-month test period. The process involves getting approvals from Reserve Bank of India," the same official said.

Nokia sees potential in this service as it is one of the major mobile phone suppliers in India. So while many people carry a Nokia mobile they can also transfer money with the same device. Customers availing this facility would also be able to pay their utility bills and top up SIM cards. They would also be able to pay for goods and services.

While explaining the working process of the service the official said, "By using this facility a person living in one place can transfer the money to another person not having bank account and the latter can receive the money from Nokia dealer in his area."

Nokia has around 2, 00, 000 retailers in India who would be serving as Nokia money service agents.

The Indian mobile phone market is a speeding market. The country now has 500 million mobile phones which is very likely to rise to 900 million by 2013.

At the same time, an estimated 41 per cent of Indians and 46 per cent of mobile subscribers do not have bank accounts.

Nokia expects the value of mobile payment transactions in India will reach up to $1.28 billion by 2013.