April 26, 2023

What is Mobile Banking in India: Meaning, Features, Login, and Registration

What is Mobile Banking?

Mobile Banking is the way through which financial transactions are made by using mobile phones. It includes a range of services from sending fraud alerts, transaction messages and usage activity to online payment of bills and fund transfer services. These services are provided by most financial institutions such as banks for the convenience of their customers. One of the greatest benefits of Mobile Banking is that customers can access banking services anywhere and everywhere. However, there are a few concerns associated with mobile banking such as security issues and limitations due to the differences between in-person banking and online banking.

Features of Mobile Banking

  • Better Security than Telephone Banking: It is a much better option than simple telephone banking as mobile banking provides enhanced security features such as face recognition, fingerprint scanning and so on. This way banks can ensure that data is accessed by an actual customer or not, by comparing it with biometric data available on their servers. It reduces the instances of fraud drastically.
  • Accessibility: Mobile Banking helps provide bank services to customers who live far from the nearest branch or in rural areas. They can easily access all banking services from the comfort of their home. Some banks even have facilities through which Disabled individuals can communicate through sign language with an interpreter over a video call to access the banking services.
  • Decrease Infrastructure costs: For Banks, Online banking means less need to develop physical branches. It also means overhead expenses reduce as customers do not have to go to the bank for every minor transaction that can be done online.
  • Effective Use of Human Resources: With the help of Mobile Banking, Customers can easily access experts from any corner of the world. For banks, it means they can make efficient use of human resources whereas, for customers, they get access to the best experts and financial services.
  • Efficient Document Sharing: Document sharing and Screen sharing are one of the features of Mobile Banking. It allows the customer to share the documents with the bank through a mobile banking application on phone. Bank representatives will have real-time access to it and can review the document for any complicated transaction through the mobile banking app.

Types of Mobile Banking Services

Mobile banking features include:
  • Online Transactions: Customers can access account details as well as account balance any time and anywhere. With the help of mobile banking, account holders can view their e-statements, Loan statements, card statements, account balance, and transaction history and even have access to e-passbooks.
  • Access to Account Information: Account holders can make payments and do online transactions from one account to another in a few seconds. Funds transfer can easily be done through NEFT, IMPS and so on by adding them as beneficiaries or through Unified Payment services (UPI). Customers can do bank-to-bank transfers, transfer funds to their own accounts, pay rent and electricity bills online, do periodic payments by scheduling them beforehand, and do payments via NEFT, UPI, RTGS or IMPS. NEFT is the quickest and takes up to 30 minutes to transfer funds to another account. It is used for small fund transfers. RTGS is used for transactions above Rs 2 Lakhs. In case, you have to transfer funds above Rs 5 Lakhs, then IMPS is used.
  • Support Services: Banks provide customer care services to enhance their banking experience. Account holders can use customer care services provided by the Mobile banking application to file complaints and queries. Services such as Bank locator, ATM locator, file complaint and track application, ordering new chequebooks and passbooks, cancelling or stopping cheques and so on are provided by banks on their online app.
  • Investments: Account Holders with Demat accounts can invest in the stock market using Bank’s Mobile application. Customers can invest in mutual funds, and stocks, access portfolio management services, and open fixed and recurring deposits through mobile banking.

Cybersecurity Concerns

With rising rates of online phishing scams, unsafe mobile banking can put you at the risk by revealing highly sensitive information such as bank account details to scammers. Therefore, it is always recommended not to store password details on any electronic gadgets such as mobile phones, laptops and so on. Cybersecurity includes a wide range of measures put in place to keep sensitive information secure and avoid cyber theft. It ensures that data is not misused and prevents the information from being compromised.
Three main types of cyberattacks that
Back Door Attacks are attacked through which someone can access the system by skipping normal security measures. Most systems have Backdoors by design or some result from the error, which hackers can utilise to gain unauthorised access to the system.
Denial of Service Attacks means denying the right access to the rightful account holder. The online hacker may enter the wrong password multiple times to get the account locked.
Direct Access Attack uses viruses and bugs to attack and gain access to accounts to steal information and modify it.

How Banks can protect their customer from Online scams?

  • By Educating customers about the importance of strong, unique passwords that can’t be easily cracked by hackers.
    • Inform customers not to use the same passwords everywhere.
    • Using Password Managers like Lass Pass adds an extra layer of security towards password protection.
    • They can avoid online cyber-attacks by ensuring that their connection is private and secure. It is recommended not to use public networks while using banking services.

Challenges associated with Mobile Banking

Limitation in Technical Knowledge: Customers may not have the necessary knowledge required to use online mobile banking services. Therefore, they won’t be able to utilise the benefits of mobile banking to its full extent.
Technical Issues and Fixes: Technical glitches can occur anytime while making online payments or using any other banking services. However, they are resolved quickly by the bank as soon as possible, when brought to notice.
Online Scams: Bank account details are at risk of getting into the wrong hands if stored on the phone or any other electronic device.

Never miss a trading opportunity with Margin Trading Facility

Enjoy 2X leverage on over 900+ stocks

Upstox Margin Trading Facility
Apple Logo
Downloadlogo
iOS App
Google Play Logo
Downloadlogo
Android App

RELATED ARTICLES

ATM Cash Withdrawal Limits of India's Top Banks

As an individual, it's essential to have access to cash when you need it. One way to do this is through ATMs, which allow you to withdraw money from your bank account anytime, day or night. However, there are limits to how much cash you can withdraw from an ATM in a single transaction or within a certain timeframe. These limits vary from bank to bank and can affect your ability to access the cash you need. In this blog post, we'll be comparing the ATM cash withdrawal limits of some of India's top banks. By the end of this post, you'll better understand ATM cash withdrawal limits.

How to Block SBI ATM Card

The first thing you should do after losing your State Bank of India (SBI) ATM card is to deactivate or disable your debit card. Additionally, you should look for any abnormal activity made with your lost debit card in your account. Furthermore, to ensure that no fraudulent purchases occur with your card, make sure you've blocked it. If you are unsure how to deactivate or block your SBI Debit Card, you have come to the right spot. This page provides a thorough summary of everything you need to know.

HDFC Bank DD (Demand Draft) Charges for Savings, Salary, & Current Accounts

Demand Draft is a transactional method. These are relatively similar to cheques, except bank issues them in response to a specific request and are payable to any particular person. DDs are merely payment orders that one bank sends to another to pay a certain party. Demand drafts from HDFC Bank are typically payable at a specific location or branch of a bank. Learn about HDFC DD charges and more in the sections below.

PNB Balance Enquiry Toll Free Number and How to Check

| Check PNB Bank Balance by Toll-free Number | 1800 180 2223 (Toll-free) | | --- | --- | | Punjab National Bank Balance Check | 0120-2303090 | The Indian banking industry has flourished since its establishment. Many public and private banks compete fiercely to provide the best financial services and acquire the most significant number of consumers. These days, convenience and attentiveness are paramount. All will love any person or organisation that can give valuable services. Concerning public sector banks, Punjab National Bank needs no introduction. For decades, it has been a reliable source of banking services for Indian citizens. Bank customers have reported consistently positive experiences. The company routinely introduces new amenities to maintain the interest of its current clients and attract new ones. PNB clients' favourite service is the ability to check their "Account Balance" quickly and easily through several convenient channels. In order to check your PNB account balance, you can use a variety of convenient methods.