german

cooperation
DEUTSCHE ZUSAMMENARBEIT

HANDBOOK ON
MOBILE BANKING
Regulatory and On-Boarding Guidelines for
Regional Rural Banks and Central Cooperative Banks

german

cooperation
DEUTSCHE ZUSAMMENARBEIT

Published by
Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH
GIZ NABARD Rural Financial Institutions Programme
Contact
Dr. Detlev Holloh
A-2/18, 4th Floor,
Safdarjung Enclave,
New Delhi 110 029 / INDIA
Phone: +91-11-4949 5353
Telefax: +91-11-4949 5393
Email: detlev.holloh@giz.de
Homepage
www.giz.de
Responsible
Amit Arora
amit.arora@giz.de
Author
Sunil Aggarwal
Editor
Nitin Jindal
Art Director
Anshul Sharma/Artworkstudios.in
New Delhi, October 2014

DISCLAIMER
Since the guide addresses all SCBs and DCCBs in India, it is possible that the requirements of some banks do
not fit into the defined processes. The contents are indicative and supporting in nature. Also the cost heads
mentioned in this document are indicative in nature. While every care has been taken to ensure accuracy, banks
are advised to exercise their own due diligence and treat this guide only as an additional point of reference.

Handbook On Mobile Banking

HANDBOOK ON
MOBILE BANKING
Regulatory and On-Boarding Guidelines for
Regional Rural Banks and Central Cooperative Banks

Contents
PREFACE................................................................................................ 5
A. SNAPSHOT......................................................................................... 6
B. CURRENT SCENARIO.......................................................................... 7
C. REGULATORY PROVISIONS................................................................. 9
D. IMPS MEMBERSHIP GUIDELINES......................................................... 11
E. RANGE OF SERVICES.......................................................................... 12
F. TECHNOLOGIES.................................................................................. 13
G. SELECTION OF MOBILE BANKING SOLUTION...................................... 14
H. SELECTION OF Mobile Solution provider(s):................................ 16
I. PROJECT COST ESTIMATES................................................................ 18
J. OPERATING PLAN............................................................................... 2 0
K. ROADMAP FOR IMPLEMENTATION....................................................... 21
Annexure I- Mobile Banking Transaction Process Flow
under different types of Models................................................... 22
Annexure II List of non-banking entities authorized by
RBI for Pre Paid Payment Instruments . . .......................................... 24
Annexure III List of IMPS Members . . ............................................. 26
Annexure IV- STK Application on Operator SIM. . .......................... 30
ABBREVIATIONS...................................................................................... 3 1

Handbook On Mobile Banking

PREFACE

obile phone has emerged as the most effective mode of communication across the
globe in all the categories voice, data,
images, video downloads/interactive
et al. It has already made redundant the use of camera,
watch, calculator, diary, video game consoles and i-pod.
Downloading of films and online streaming of TV may
decrease utility of conventional TV. It is further encroaching upon the use of plastic cards, desk/laptops and tablets to access Internet. It has morphed into a one device
solution for all that a person is required to use for work
and entertainment. Bluetooth & NFC have increased its
connectivity to a variety of other electronic equipment.
Innovations in the areas of miniaturization, communication and storage capacities have further strengthened its
capabilities.
It is thus no wonder that mobile is becoming one of the
most prominent channels of banking as well. It is taking
over Internet Banking and all other forms of non-cash
banking transactions. Even in the area of cash transactions,
it may soon replace plastic cards for accessing ATM. It may
in fact reduce the very need of cash when the day-to-day
transactions between persons/merchants start happening
for instant transfer of funds on the spot.
Mobile banking is likely to play a very significant role in
regard to financial inclusion of vast section of the society
residing in remote areas. Due to logistics and commercial
considerations, banks are still away from a very large population residing in rural areas. Poorer sections of the society,
even in banked areas, are deprived of basic banking facilities since the existing infrastructure is ill-equipped to cater
to their requirements. Mobile Banking is expected to play
an important role in bridging this gap as it significantly
reduces the transaction costs and helps in reducing need
for physical cash.
In India, so far progress in adoption of Mobile Banking
has been a little tardy. This is because of several reasons
like requirement of smart phones to do secured mobile
banking while most of the population uses ordinary (feature) handsets. This scenario, however, is heading for a
rapid change as smart phones are becoming more and
more affordable and also Mobile Banking solutions are

being developed to provide communication on ordinary

handsets. NPCI has recently setup a platform to facilitate
inter-bank transactions through ordinary mobile phones.
In addition, mobile communication network is fast moving
into interior parts of the country which will enable people
residing in remote areas to get connected to the mobile
communication.
All these developments have provided an excellent tool
in the form of the mobile for banks to achieve financial
inclusion goals by reaching to the common man in every
nook and corner of the country. It is not far off when we
find a secured and use-friendly mobile banking within the
reach of masses in every nook and corner of the country.
Banks have recognized the potential of mobile banking.
Most commercial banks have launched their mobile banking products to cater to different segments of their client
base. These banks are backed by their own data centres,
technical, human and financial resources. Their aggressive
foray has started yielding results.
Following data is indicative of the exponential growth of
mobile banking transactions in the recent past:
Data relating to Mobile Banking Transactions
Month

No. of Transactions

Amount (Rs. in lacs)

December 2013

88,92,790

2,26,130

June 2014

107,28,715

3,98,532

Growth

20%

76%

(Source: Reserve Bank of India)

In the background of the above, it is crucial that rural/

cooperative banking sector moves on to mobile banking
at the earliest. Having already migrated to Core Banking
Solution, which is the foundation for on-boarding mobile
banking, these banks are now well positioned to move forward even though constraints in terms of financial, technical
and human resources are a challenge. Fortunately, several
outsourcing models are available to address these concerns.
This handbook is intended to familiarize the banks about
the mobile banking solutions available in the market, the
regulatory provisions and other essential matters of compliance. It also outlines the steps required to be taken to get
on-board the mobile banking platform.

Handbook On Mobile Banking

A. SNAPSHOT
i) In terms of guidelines issued by RBI, Mobile Banking
transaction means undertaking banking transactions
using mobile phones by bank customers that involve
accessing/credit/debit to their accounts.

in existence. Annexure I contains diagrammatical

description of transaction flow under each model.

ii) Banks having a valid banking license, have to seek one

time approval from RBI for starting mobile banking
services. RBI has issued detailed regulatory guidelines1
which the banks have to comply with while conducting
mobile banking business.

viii) Banks can also avail the services of ASPs to avoid

owning the Mobile Banking Switch (similar to RuPay
Card Switch). Some of these ASPs are operating their
own Mobile Banking Switch, providing BC and PPI
services. These non-banking entities and several other
players in the market may be likely vendors for this
type of ASP services.

iii) Banks are required to have a mobile banking solution

linked to their CBS.

ix) Engaging BCs by banks is subject to regulatory guidelines issued by RBI from time to time.

iv) To be able to effect inter-bank payments, the Mobile

Banking Switch is required to be linked to IMPS, an
inter-bank payment and settlement platform setup by
NPCI, just like NFS for RuPay Cards. Currently, remittances upto Rs. 2 lac can be done through IMPS.

x) The structural diagram of mobile banking in India is

given below:

v) To help banks in providing secured and user-friendly

mobile banking services (including inter-bank payments) to their customers having ordinary GSM (not
available on CDMA) mobile phones, NPCI has setup a
common USSD platform to link different telecom service providers with banks.
vi) T
 he range of services provided by a bank depends upon
the technology(s) adopted by them and the type of
mobile phones owned by the customers. Many banks
are offering multiple options so that customers having
ordinary mobile phones as well as those having smart
phones get banking services as per capabilities of their
phones.
vii) There are several vendors offering mobile banking
solutions. The solutions are available on ownership
as well as ASP model2. BC assisted models are also

MOBILE BANKING

THROUGH NON-BANKING
ENTITIES AS BCs
OF BANKS

Directly

OUTLETS DEDICATED
TO INDIVIDUAL
BANKS

OUTLETS OFFERING
MULTIPLE SERVICES
INCLUDING THOSE
OF BANKS

MERCHANTS
OFFERING BANKING
SERVICES
ALONGSIDE THEIR
BUSINESS
ACTIVITIES

1 RBI Master Circular Mobile Banking transactions in India Operative Guidelines for BanksNo.RBI/2014-15/104 DPSS.CO.PD.
Mobile Banking. No. 2/02.23.001/2014-15 dated July 1, 2014 (enclosed in annexure)
2 ASP Model means outsourcing model under which the service provider installs its software solution at his own Data Centre and
provides services on the basis of fee per transaction.

Handbook On Mobile Banking

B. CURRENT SCENARIO
Most commercial banks and major urban cooperative
banks are offering mobile banking services. Apart from
offering mobile banking services directly to the customers, banks also avail services of non-banking entities as
Business Correspondents (BCs) to reach out to wider section of the customers, particularly in the remote areas.
These non-banking entities include authorized PPI issuers
as well as others. These BCs often operate their own mobile
banking platform, linked to CBS of the bank. Alongside
banking services, they also cater to various other financial
service providers. Some BCs also offer dedicated BC outlets for individual banks.
Apart from banks, many other non-banking entities are
engaged in payment services/mobile wallet services. They
require authorization from RBI under the PSS Act, 2007
for setting up and operating Payment System in India. At
present, 30 non-banking entities have been authorized by
RBI for issuing Pre-Paid Payment Instruments (PPIs)3.
These non-banking entities can offer closed system and
semi-closed system PPIs (not permitted to issue open
payment system PPIs). RBI has issued detailed guidelines for issuance and operation of Prepaid Payment
Instruments. Annexure II contains the list of these nonbanking entities.

Inter-Bank Transactions
Inter-bank remittances/payments may be facilitated
through RTGS/NEFT as well as IMPS (Immediate
Payment System setup by NPCI) in case of banks connected with both. Banks not connected to RTGS/NEFT can
offer inter-bank transfers through IMPS. To be a member
of the IMPS, the banks have to be either a direct member of
payment settlement system or have to come through sponsorship by a direct member bank, similar to membership

Banks Having Permission to provide

Mobile Banking *
List of Banks permitted to provide
Mobile Banking Service in India
PUBLIC SECTOR BANKS
26
OLD PRIVATE SECTOR BANKS
14
NEW PRIVATE SECTOR BANKS
6
FOREIGN BANKS
11
URBAN COOPERATIVE BANKS
19
GRAMIN BANKS (Regional Rural Banks)
11
STATE & DISTT CENTRAL COOPERATIVE BANKS
2
TOTAL 89

RRBs and SCB/DCBs having Permission to

Provide Mobile Banking Service
GRAMIN BANKS
1 Baroda Gujarat Gramin Bank
2 Baroda Rajasthan Gramin Bank
3 Baroda Uttar Pradesh Gramin Bank
4 Andhra Pragathi Grameena Bank
5 Jhabua- Dhar Kshetriya Gramin Bank
6 Madhya Bihar Gramin Bank
7 Pallavan Grama Bank

8 Pragathi Gramin Bank
9 Shreyas Gramin Bank

10 South Malabar Gramin Bank
11 Uttarakhand Gramin Bank

SCBs/DCCBs

1 The Kangra Central Cooperative Bank Ltd.
2 The Tamil Nadu State Apex Cooperative Bank Ltd.

Source: RBI
*Position as on September 1, 2014

3 Pre-Paid Payment Instruments (PPI) are stored value Instruments, defined under 3 categories
i) Closed System - for facilitating the purchase of goods and services from the issuer
ii) Semi-Closed System- for purchase of goods and services, including financial services at a group of clearly identified merchant
locations/ establishments which have a specific contract with the issuer to accept the payment instruments
iii) Open System - for purchase of goods and services, including financial services like funds transfer at any card accepting merchant
locations (point of sale terminals) and also cash withdrawal at ATMs/BCs. Only banks are given permission by RBI to issue Open
System PPIs. Detailed guidelines contained in RBI Master Circular No.RBI/2014-15/105 DPSS.CO.PD.PPI.No.3/02.14.006/2014-15
dated July 1, 2014

Handbook On Mobile Banking

process for joining card payment system. The membership

of this is open to banks as well as non-banking entities
authorized by RBI for PPI. NPCI has laid down detailed
guidelines, technical specifications, process and procedure
for membership and conduct of business. NPCI provides
guidance and support to banks as and when they approach
NPCI for membership.
As on date, 68 banks and 8 non-banking entities are members of IMPS. Annexure III contains the detailed list of
the same.

Emerging Developments
a) Recommendations of Technical Committee of RBI
RBI had set up a Technical Committee of RBI on Mobile
Banking which submitted its report in January 2014. The
report has suggested several steps to be taken to increase
mobile banking usage.
The committee has called for steps to be taken to
Simplify mobile registration process to avoid visit
to branch
Simplify and standardize M-PIN generation process
Introduce One Time Password (OTP)
Facilitate merchant payment using just mobile number and M-PIN/OTP on the merchant interface
Train staff
Educate and handhold customers
The committee has recommended banks to
Implement multiple channels SMS, USSD, application etc.
Introduce encrypted SMS in application based mobile
banking
Simplify P2P transfer using mobile number and
account/Aadhaar number
Facilitate use of a single or common USSD number/
SMS short/long codes/IVR number/mobile application across all banks.
Increase limit of unsecured transaction (without end
to end encryption) from the existing Rs.5000/- to
Rs.10000/- subject to having certain velocity checks
at the bank side. Banks may take the decision as per
their security policy and internal risk management
control measures.
MNOs should provide mobile number from where the
banking transaction has originated.

Handbook On Mobile Banking

The committee has submitted recommendation for each

type of Mobile Banking Solution as under:
i) R
 ecommended solution for SMS based
mobile banking
Use of common mobile banking application which will
enable the use of encrypted SMS messages for mobile
banking transactions
Use of common mobile banking application preferably
using STK (SIM Application Tool Kit) applications for
mobile banking.
Common application to be standard menu-driven and
interactive for use by all banks to avoid need for customer
to remember or know the SMS syntax.

Consider adopting STK application which encapsulates and sends encrypted SMS to pre-defined number
- ensures end-to-end security, and can be used for transactions of higher values.
User not required to know the SMS short code or long
code number
ii) Recommendations for USSD based mobile banking
Implementation of the TRAI regulations must be expedited by all the stakeholders.
Banks should tie up with MNOs to offer these services
directly to their customers
Implementation of common USSD gateway for mobile
banking should be expedited which would help avoid
the need for each bank to tie-up with a large number of
MNOs
iii) R
 ecommendations Application based mobile
banking
Common mobile application may be developed and distributed, having standard common menu containing the
minimum and most required transaction set.
Recently, RBI has permitted domestic leg of international
money transfer transactions to be processed through IMPS
platform. The banks and financial institutions engaged in
international remittances can now credit the beneficiary
accounts in India real time, if the remitting institution can
carry out Anti Money Laundering (AML) verification real
time.

C. REGULATORY PROVISIONS
i) For Banks
1. Mobile banking and Mobile banking transactions have
been defined by RBI as under:
a. Mobile banking - Use of mobile phones as medium for
extending banking services
b. Mobile banking transaction - Undertaking banking
transactions using mobile phones by bank customers
that involve accessing/credit/debit to their accounts
2. RBI allows banks to offer mobile banking services.
3. Banks are required to obtain one time prior permission
from the Department of Payment & Settlement Systems,
Reserve Bank of India for starting mobile banking
4. The permission is granted subject to compliance with
the Regulatory & Supervisory Guidelines issued by RBI4
for carrying on the mobile banking services. The guidelines are applicable to all commercial banks (including
Regional Rural Banks), Urban Cooperative Banks, State
Cooperative Banks and District Central Cooperative
Banks.
5. For RRBs/DCCBs/UCBs, the RBI permission for mobile
banking is not necessary to on-board IMPS network
as beneficiary (inward remittances). The settlement for
these transactions will be done through sponsor banks
account.
6. RBI has issued master circular containing operative
guidelines for banks on mobile banking transactions.
Key provisions of the guidelines relating to regulatory
and supervisory issues are:
a. Banks, licensed, supervised and having physical presence in India, are permitted to offer mobile banking services. Only banks who have implemented core
banking solutions are permitted to provide mobile
banking services.
b. The services shall be restricted only to customers of
banks and/or holders of debit/credit cards issued as
per the extant Reserve Bank of India guidelines.

c. Only Indian Rupee based domestic services shall be

provided. Use of mobile banking services for cross
border inward and outward transfers is strictly prohibited. Recently, RBI has permitted processing of
domestic leg of international money transfer transactions through IMPS platform.
d. 
Banks may also use the services of Business
Correspondent appointed in compliance with RBI
guidelines, for extending this facility to their customers.
e. Banks are permitted to offer mobile banking facility to
their customers without any daily cap for transactions
involving purchase of goods/services. However, banks
may put in place per transaction limit depending on
the banks own risk perception, with the approval of
its board.
f. Remittance of funds for disbursement in cash
i) Banks are permitted to provide fund transfer services which facilitate transfer of funds from the
accounts of their customers for delivery in cash
to the recipients. The disbursal of funds to recipients of such services can be facilitated at ATMs
or through any agent(s) appointed by the bank as
Business Correspondents. The recipient can be a
non-account holder also.
ii) In case of cash out, the maximum value of such
transfers shall be Rs 10,000/- per transaction.
Banks may place suitable cap on the velocity of
such transactions, subject to a maximum value of
Rs. 25,000/- per month, per beneficiary.
iii) The disbursal of funds at the agent/ATM shall be
permitted only after identification of the recipient. Banks are required to carry out proper due
diligence of the persons before appointing them as
authorized agents for such services.
iv) Banks shall be responsible as principals for all the
acts of omission or commission of their agents.
g. Transactions up to Rs. 1000/- can be facilitated by
banks without end-to-end encryption. The risk aspects
involved in such transactions may be addressed by the
banks through adequate security measures.
h. The guidelines issued by the Reserve Bank on Risks

3 RBI Master Circular Mobile Banking transactions in India Operative Guidelines for Banks No.RBI/2014-15/104 DPSS.CO.PD.
Mobile Banking. No. 2/02.23.001/2014-15 dated July 1, 2014

Handbook On Mobile Banking

and Controls in Computers and Telecommunications

vide circular DBS.CO.ITC.BC. 10/31.09.001/97-98
dated 4th February 1998 will apply mutatis mutandis
to mobile banking.
i. The guidelines issued by the Reserve Bank on Know
Your Customer (KYC), Anti Money Laundering
(AML) and Combating the Financing of Terrorism
(CFT) from time to time would be applicable to
mobile based banking services also.
j. Banks shall file Suspicious Transaction Report (STR)
to Financial Intelligence Unit India (FIU-IND) for
mobile banking transactions as in the case of normal
banking transactions.
k. Besides aforesaid, the RBI Guidelines include provisions in regard to:
Registration of customers for mobile service
Technology and Security Standards
Inter-operability
Clearing and settlement for inter-bank funds transfer transactions
Customer complaints and grievance redressal mech-

10

Handbook On Mobile Banking

anism
Transaction limit
Remittance of funds for disbursement in cash
Board approval

ii) For Non-Bank Payment Service

Providers
RBI authorizes non-banking entities to operate as payment service providers under the PSS Act, 2007 for
setting up and operating payment system in India for
issuing stored value instruments (Pre-Paid Payment
Instruments) on mobile.
Detailed Policy Guidelines are contained in RBIs
Circular No. RBI/2014-2015/105 PSS.CO.PD. PPI.No.
3/02.14.006/2014-15 dated July 1, 2014 (refer annexure).
Banks are advised to refer to circulars/notifications issued
by Reserve Bank of India from time to time to get the latest
status.

D. IMPS MEMBERSHIP
GUIDELINES
1. Both banks and PPIs to have mobile banking license
from RBI
2. Banks to comply with NPCI specifications
3. Banks to integrate IMPS services and related queries in
their Customer Service Support system
4. Banks to submit information to NPCI from time to time,
like:
a. Total no. of banks registered mobile banking & SMS
alerts customers.

b. The peak level mobile banking transactions volume in

terms of number and amount (in rupees) handled by
the banks switch on any particular day so far both
intra-bank and inter-bank
c. Current System (HW/SW) sizing to handle peak number of transactions/day for mobile banking.
d. Current System (HW/SW) sizing to handle peak number of transactions per second for mobile banking.
e. Statistics relating to IMPS transactions

Handbook On Mobile Banking

11

E. RANGE OF SERVICES
The range of services being offered by the banks is very
wide and varied. Listed below is the broad range of services:

i) By Banks
1. Services being offered include Bank Account related
activities like Funds Transfer / Instant Funds Transfer
(through IMPS/NEFT)/ Bill Payment / Balance Enquiry
/ Cheque Book Request / Last 5 Transactions / Stop
Cheque Request / Cheque Status Enquiry / Open a Fixed
Deposit / Open Recurring Deposit
2. Other add-ons like Credit Card, Demat, Loan, Mobile/
DTH Recharge, Movie/Air/Bus Ticket, etc.
3. Mobile Payment/Wallet Services - through tie-up with
service providers like m-Pesa, mRupee, Oxigen e-Paisa,
Aircel Mobile Money, Airtel Money etc.
4. Cash deposit/withdrawal facilities thru tie-up with BCs
dedicated outlets/BC owned outlets. These BCs are
primarily of 2 kinds:
Having their own BC outlets to cater to various banking/financial companies to sell their products and services. These BCs are generally having their own mobile
based transaction software solution which is connected
to the CBS of the bank/s.
Outlets dedicated to a particular bank, directly connected to their CBS.
5. Many banks are offering multiple options, based on different mobile communication channels. For example
one large private sector bank offers a bouquet of following options:
WAP based application compatible with the handset
having GPRS
USSD based application which is available on all GSM
handsets
SMS based application - available on all handsets
across all operators but with restricted functions and
amount limit specified by RBI due to insufficient security of this communication channel.

Call to pay services - IVR5 mobile banking

Smart Phone based mobile banking facility, offering
a wide variety of services, almost comparable to the
facilities available on Internet Banking.

ii) By Non-Banking Entities

1. Prepaid Payment Instrument (PPI) Issuers
These non-banking entities are authorized by RBI to offer
mobile wallet & payment services and they operate their
own mobile banking platform (Oxigen, PayMate, Airtel
Money, m-Pesa, mRupee, Aircel Mobile Money etc.). They
are primarily engaged in payment/remittance services.
Some of them have also taken membership of IMPS.
In addition to their PPI business they may also operate
as BC of banks, managing services like account opening,
cash deposit, transfer to bank account (NEFT), IMPS
transfer, balance check, mini statement, airtime recharge,
DTH recharge, rail ticket booking and movie ticket booking. They offer various types of products some backed
by their own platform and others linked to a bank account.
For example, Airtel (MNO) offers:
Airtel Money which offers 3 different types of accounts
Express Account, Power Account and Super Account.
Out of these 3 types, Power and Super Accounts are
KYC verified accounts offered in partnership with banks.
Cash withdrawal is available only on the Super Account
which is linked to bank account in Axis Bank
2. Other Non-Banking Entities
a. Some companies are not authorized for PPIs but operate
as BCs of banks, offering services like account opening,
cash deposit/withdrawal, funds transfer, balance enquiry etc.
b. Some of them operate dedicated outlets for the banks;
while others have their own independent outlets/BC
networks, providing financial products/services such
as mobile/DTH/toll Recharge, utility payments, insurance, movie tickets etc., operating on their own mobile
based transaction software solution. Examples Oxigen,
Sub-K, Eko etc.

5 IVR (Interactive Voice Response) is a technology that allows a computer to interact with humans through the use of voice and
DTMF tones input via keypad

12

Handbook On Mobile Banking

F. TECHNOLOGIES
Banks can use various technologies for mobile banking
services. A brief description of the various modes is given
below:

1. SMS (Short Messaging Service)

a. Technology is available on all types of phones
b. Operates on normal SMS platform using both push and
pull messages
c. Easy to access but requires customer to remember syntax for each activity
d. Cost of SMS borne by the customer (unless bank has
entered into any arrangement with the Mobile Network
Operator)
e. High Security concerns

2. IVR (Inter-active Voice Response)

a. Transaction is through inter-active voice navigation
b. Supported on all types of Mobile Phones
c. Not very convenient and time consuming as the customer is required to dial up to get connected
d. Call charges applicable
e. Need of Back-up human support

3. U
 SSD (Unstructured Supplementary
Service Data)
a. Operates on ordinary GSM mobile phone (not available
on CDMA phones)
b. Menu driven form of SMS and hence easy to operate
c. NPCI has setup a common USSD Platform (NUUP)
for all banks instead of each bank having to develop its
own platform. It provides access to all MNOs on GSM
technology through a single integration with NPCI.
It provides mobile banking service on even ordinary
mobile phones as it does not involve downloading of any
application on the phone. It operates with One number

(*99#) for every customer to access irrespective of the

telecom service provider, mobile handset make or the
region across India and can be used at BC/POS terminals also. Currently 29 Banks have enrolled for this facility. The upper limit on transaction fee payable to MNOs
has been fixed at Rs.1.50 per transaction by TRAI.
Please see the following link for NUUP videos from NPCI:
English: http://www.youtube.com/watch?v=kycSxtDHJw
s&feature=youtu.be
Hindi: http://www.youtube.com/watch?v=iahZNkyydLs

4. WAP (Wireless Access Protocol)

a. Internet based service
b. Available on all GPRS enabled GSM/CDMA phones
c. Costly to end users as data and roaming charges may
apply
d. May require customization to suit different types of
mobiles

5. Mobile Application
a. Require down loading mobile application of the bank on
the mobile phone of the customer
b. Require GPRS and compatible handset for the type of
application developed by the bank
c. Does not suit customers having ordinary mobiles and
those not having sufficient exposure to technology

6. STK (SIM Tool Kit) Based

This application is embedded on SIM Card. Transmission
of data can be either SMS or GPRS (data) channel. It can
be used by any customer, irrespective of handset and can be
standard menu-driven, interactive and user-friendly. RBI
has recommended for its introduction in India. Annexure
IV contains details about the technology.

Handbook On Mobile Banking

13

G. SELECTION OF MOBILE
BANKING SOLUTION
Key factors in regard to selection of Mobile Banking
Solution are:

e. Financial strength to bear the capital expenditure

involved in acquiring switch, Micro-ATM etc?

1. Business Plan - Customer Profile, Geographical segment, Product Offering

a. Is it Financial Inclusion or business development; or
both?
b. Which segment of Customers is to be targeted; urban,
rural/semi-urban, unbanked, educated only, upper
layer or all?
c. What products are to be offered Cash/Non-cash, Self
Operated/Assisted, Other Services Basic Banking/
Basic Banking + Recharge, Bill Payment etc?
d. 
If cash deposits/withdrawals cannot be serviced
through the bank branch would the bank like to set
up a BC network and/or Point of Sale (PoS) merchant
network (see RBI circular in annexure) as well?
e. How many customers are expected to be covered by
the mobile banking initiative? Will this base grow
annually? How many transactions are expected from
each customer annually? What types of transactions?
f. Which category(s) customers will be signed up for
mobile banking? Are they in a specific geographic area?
Are they in a certain income category? What areas will
the pilot cover and how will the initiative be scaled
across the bank? What bank infrastructure is currently
available to the target group?
g. 
What is the mobile network coverage across the
planned deployment areas? Is the signal strength
adequate? Are there frequent outages? What kinds
of phones are normally used by the target customers?
What is their level of literacy?

3. 
Facility for Cash Deposit/Withdrawal Facility
through Mobile Banking
a. If the mobile banking customers are in the vicinity of
the branches of the bank, it may not be necessary to
look for any additional infrastructure
b. If the mobile banking customers are in remote areas,
bank may consider PACS to provide this facility
(similar to merchants) through PoS connected to the
Mobile Banking Switch

2. Available Resources IT Infrastructure, Human

Resources, Financial Resources
a. Own Data Centre or Hosted Data Centre or ASP?
b. Is the CBS connected to the NFS either directly or
through an ASP?
c. Whether sponsor bank can permit use of its own Mobile
Banking Switch (in case of RRBs in particular)?
d. Whether trained human resources are available to
manage switch, operations, customer service?

14

Handbook On Mobile Banking

4. Mobile Banking Technology

a. For Basic Banking Transactions - Balance Enquiry,
Latest Transaction List, Balance Transfer and for
Cash Deposit/Withdrawal:
i) S
 MS based Banking
Not considered a very safe and convenient mode
as messages are stored, un-encrypted and message
format difficult to remember
Can be suitable for small value transactions
Operable on any handset and on all Mobile
Networks
Banks to use their NPCI connectivity to route
other NPCI network linked banks accounts
ii) U
 SSD based Banking
Suitable only if the Mobile Network Operators
in the area use GSM technology. Subscribers of
CDMA mobiles would not be able to avail the facility.
Session based communication, relatively safe and
convenient mode of communication
No Transaction Limit specified by RBI
Operable only on GSM handsets and does not
require a smart phone
Operable only on the GSM Mobile Networks operating in the area
Banks to link to NUUP of NPCI to provide interbank remittance facility

b. For Mobile Banking with value added services like

Mobile Recharge, Bills Payment, FD request etc.,
the banks opt for Mobile Application based solution.
These solutions require downloading of the Software
Application on the Mobile Phone and therefore only
those customers would be able to avail these facilities
who have smart phones.
5. Mobile Banking Model
a. If the bank is operating its CBS and Card Payment
Switch on ASP Model, the mobile banking solution
should also be on ASP basis.
b. If the bank has CBS at its own Data Centre or on hosted
Data Centre but Card Payment Switch on ASP Model,
bank may explore both the options i.e. whether to have
mobile banking on hosted CBS or to engage ASP.
c. If the bank has its own Data Centre and its own Card
Payment Switch, the bank may find it more beneficial
to acquire and manage the mobile banking switch.
6. Cost Estimates
a. Some of the cost heads apply to all models, like Annual

S.No.

Cost Head

Technical Support, Training, and Connectivity to CBS

& IMPS etc. On the other hand, other costs will vary
upon model like cost of solution, transaction fee, providing BC services etc.
b. The cost of acquisition of mobile banking solution
depends on a number of factors like type of solution,
volume of business, customization, existing CBS and
NPCI connectivity scenario, acquisition model (ownership or ASP) etc. At present mobile banking on ASP
being only at the evolving stage, the cost estimate can
only be bank and products specific. Even a ballpark
figure would be a wild guess work only. The illustrative list of various cost heads is given below.
Aforesaid information will help the bank to take decisions
with regard to:
- Selection of the target group and geographic areas
- Selection of the relevant mobile banking model
- Selection of the right mix of banking and non-banking
services
- Selection of the mobile banking solution

Narration

Customization Charges

Customization of Solution as per individual banks

requirements

Channel Support Charges

Charges for providing BC services

Development of Additional Modules

If modules are to be developed in addition to the

ones provided in standard product

Purchase of Devices

Cost of POS Devices linked to Mobile Banking Switch

Connectivity with CBS

Cost of connectivity Mobile Banking Solution to the

CBS

Connectivity with NPCI

Cost of connecting to the IMPS

Connectivity to Merchants /
Aggregators / Gateways

Wherever applicable

Training

Training to bank IT /Operating staff

Fixed Fees

Upfront Fee for Installation of Mobile Banking Switch

10

Transaction Fees

Applicable on ASP Model

11

Commissions and Revenue Share

Applicable to BC Services Provider

12

Support Fees

Annual Maintenance/Technical Support Fee

13

Telecom Fees

Fee payable to Mobile Network Operator for

carrying the mobile communication

14

Switching Fee payable to NPCI

As specified by NPCI from time to time. Currently

0.50 per successful transaction

15

Interchange Fee structure as below

(Payable by Remitter Bank to the Beneficiary Bank)

Successful Transaction value upto

Rs. 25,000 Rs. 1. Successful Transaction value
Rs. 25,001 to Rs. 2 Lacs Rs. 5

Handbook On Mobile Banking

15

H. SELECTION OF Mobile
Solution provider(s)
The Solution may be used for various financial inclusion
and mobile banking initiatives of the bank. Bank may use
it for BC operations as well. Therefore, the solution provider is expected to have products, services and capabilities to provide an end-end comprehensive infrastructure
to implement mobile banking solutions and services for
the bank. The technology solution/platform is expected to
integrate with the banks core banking system and financial
switches, integrate with mobile network operators, and
integrate with various third party aggregators and service
providers for seamless connectivity.
Banks may consider following key criteria for selection of
the solution provider:

1. Core Functionality
a. Banking and Non-Banking Transactions most of
the solutions/vendors support basic banking transactions such as account openings, deposits, withdrawals,
balance enquiries and remittances/transfers. Equally
important is support/availability of non-banking transactions. Though these services may not be immediately
needed, it will provide added value to customers later
and become a revenue source for the bank/BC agent.
b. Assisted and Self Transactions availability of both
assisted transaction and self-transaction models.
c. Ownership and Hosted Models the mobile banking
service provider must have the ability to offer the mobile
banking solution in both models ownership and ASP
to enable the evolving needs of the bank.
d. Cash Dispensation Operations some banking transactions can be fully done by the customer using his/
her mobile phone, while other transactions will need
the assistance of an agent. This is especially the case
for cash based transactions. A merchant agent network
may be needed in remote areas to provide these assisted
services.
e. Integration and Standards capabilities for integration with CBS, IMPS, UIDAI, other banks, switches,
merchants, aggregators and gateways etc., to ensure

16

Handbook On Mobile Banking

seamless operations.

2. Technology Maturity
a. Multiple Service Delivery Channels availability of
multiple service delivery channels (SMS, IVR, USSD,
and App etc.) to provide flexibility to bank to select suitable channel(s).
b. MNO Carrier Agnosticity - availability of services for
customers through any mobile network operator.
c. Compatibility ability and ease with which the solution can be linked with additional services, functionality,
channels and partners.
d. Scalability and Replicability robustness of the technology architecture, scalability of the solution and the
ease of extending the solution to other participating
banks.
e. Hosted Model support of both ownership and hosted/managed models for the mobile banking platform
solution. Flexibility to switch from hosted to ownership
model or vice versa.

3. Vendors Credentials
a. Product Roadmap future product / services that will
be introduced by the mobile banking service provider.
b. Costing and Commercials total cost of ownership for
the selected technology / service as well as the ability to
price based on usage.
c. Mobile Banking Service Provider Experience - prior
implementation and project experience by the mobile
banking service provider.

4. Illustrative List of Mobile Solution

Providers
Currently following Vendors are providing mobile banking solutions as per required specifications. There may
be several others also who might have appropriate solu-

tions. Some of these Vendors may be in a position to be

Application Service Providers. Banks should explore all
available options to select the appropriate Vendor:
a. Finacus
b. Sarvatra Technology
c. Infrasoft Technologies
d. Financial Software and Systems (FSS)
e. C-Edge Technologies

f. FIS
g. Saraswat Infotech
h. Olive Crypto
i. Infosys
j. TCS
k. Paymate
l. GI Tech
m. Euronet

Handbook On Mobile Banking

17

I. PROJECT COST ESTIMATES

The total cost of the mobile banking technology solution
can be categorized into following 3 broad areas

banking solution, whether owned by the bank or not.

Following are its sub-components:

a) Acquisition or initial set up costs to acquire the solution,

b) Commissioning costs to configure and connect the
solution to banking systems and payment switches and
gateways, and
c) Operating costs involved in transacting and supporting
day to day mobile banking transactions.

a. Customization Charges
Charges are for customizing the Solution to have features/functionality and a standard user interface (UI)
as per individual banks requirements.
b. Channel Support Charges
Some Vendors may not be supporting all technologies
(SMS, IVR, USSD, WAP and Apps.), and therefore may
charge a fee to induct such technology.
c. Development of Additional Modules
Usually, functionalities required by the bank are available in the Solution. In case there are unique requirements, the vendor may charge additional fees to develop
these additional functionalities. The fees is based on
actual time and effort to be expended by the vendor.
d. BC Outlet/POS/Mobile Devices
In case the bank opts for BC outlets or provides PoS or
Mobile Devices to Agents, these costs would be additional.

There are two primary models for implementing a mobile

banking solution at the bank:
a. Ownership Model
The entire solution is purchased, owned, hosted (either
internally or through a 3rd party data center) and supported by the bank.
The Setup cost may include customization cost, connectivity to CBS/MPS etc.
Additional cost may include training, roll-out support,
annual maintenance/technical support etc.
b. ASP (pay per use)Model
In this model, the Vendor /ASP owns the mobile solution which is hosted either at its own Data Central or at
a 3rd party Data Center.
The bank does not incur any capital expenses and pays
the ASP an annual fee and/or transaction fees depending on usage.
The bank may have to, however, incur the initial set-up
and connectivity costs.
There may be a minimum threshold defined by the ASP
for number of transactions or customers.
There may also be vendors offering revenue model.
The Setup cost may include customization cost, connectivity to CBS/MPS etc.
Additional cost may include training, roll-out support,
annual maintenance/technical support etc.
Various cost components under different Cost Heads are
explained herein below:
1. Acquisition Cost
This is the cost incurred by the bank to acquire the mobile

18

Handbook On Mobile Banking

2. Commissioning Costs
One-time cost to cover configuration and connectivity to
other systems such as CBS, IMPS etc. It also includes the
installation of the solution and associated training to the
bank staff.
3. Operating Costs
The fees charged by the ASP (pay-per-use) model - per customer or transaction. The fee may involve a fixed cost and a
variable cost (such as telecom charges). Some vendors may
also have an annual fee in-addition to a per-transaction fee.
4. Other Costs:
It includes the following items:
a. Lock-in Period
Along with the fixed fees or minimum guarantees, vendors may also stipulate a lock-in period i.e. the contract
for a minimum number of years, or hold the rates valid
for a specified period.
b. Commissions and Revenue Share
Some vendors also stipulate sharing of a portion of commission revenues for remittance/money transfer/mer-

chant transactions. Some vendors do not have a revenue

sharing arrangement at all, and let the bank decide the
quantum of commissions to charge/receive.
c. Support Fees
Some vendors charge fee to provide technical support,
business transaction support, reversals, reconciliation
and other end of period processing support. Generally,
the vendors bundle these charges into the transaction
charges.
d. Telecom Fees
The telecom charges may be based on each transaction
or may be on actual basis. Some vendors bundle this
with the transaction charges. Additionally, the leased
line charges for connectivity between the CBS and the

mobile banking solution are payable by the bank.

Total Cost of Ownership (TCO)
The total cost of ownership (over an appropriate number
of years, say 3 years or 5 years) of the solution based on various cost components explained above needs to be arrived
at to undertake comparative analysis of various solutions.
Following factors may impact total cost of ownership of
each solution:
1. Estimated volumes
2. Minimum guarantees
3. Revenue sharing
4. Vendors capabilities in respect of connectivity to external systems like CBS, IMPS etc.

Handbook On Mobile Banking

19

J. OPERATING PLAN
a. Training & Support
A well-defined training plan for all bank staff involved
covering topics such as product, technology, architecture,
transaction process, channels, reconciliation, settlement
etc. is required to be provided to the bank personnel who
are involved in day to day operations and support of the
mobile banking solution.
b. Process
User manuals, operating process, standard operating procedures, reconciliation and settlement etc., are required to
be defined and documented. The solution provider needs
to provide detailed document depicting architecture, technical specifications and configuration etc. for various modules.

20

Handbook On Mobile Banking

c. Support
24 X 7 technical support for the software technology
implementation are to be provided by the solution provider. The support mechanism should be well defined and
documented with clear turn-around time lines.
d. Settlement
A well-defined settlement process and mechanism for
reversals and charge backs between the various stakeholders such as BC, agents and interbank transactions should
be in place. The settlement cycle (end of day, weekly,
monthly) should also be well defined and documented.
e. Marketing & Customer Awareness
The bank may have to design a plan for creating customer
awareness and demand for the service through its branch
network and campaigns.

K. ROADMAP FOR IMPLEMENTATION

1. 
Seek internal approval from the Board for Mobile
Banking Facility to its customers, specifying the type of
arrangement
2. Secure IMPS membership for Inward Remittances (as
Beneficiary) for which there is no need for RBI approval for RRBs/DCCBs and for installation of any Mobile
Banking Solution

as explained earlier) or through sponsorship from a

bank having membership of IMPS, complying with the
sponsoring banks requirements like opening of current
account, maintaining balance etc.
9. Apply to NPCI for membership of IMPS

3. Select appropriate Mobile Banking Solution

10. Get the Mobile Numbers of their customers linked to

their respective account for the purpose of providing
Mobile Banking Services

4. Tie-up with Mobile Banking Solution Provider on either

ownership basis or on ASP Model

11. Lay down operational guidelines including customer

support services

5. Obtain Mobile Banking approval from RBI

12. Complete end-to-end testing of the solution and Pilot

launch with select account holders

6. Have the Mobile Application customized for their bank

13. Have the CISA Audit done for the entire setup
7. Arrange linking of the CBS with the Mobile Banking
Switch

14. Release to account holders upon successful Pilot launch

8. Seek Membership of IMPS either Direct (if eligible

Handbook On Mobile Banking

21

Annexure IMobile Banking Transaction Process Flow under

different types of Models
Mobile Banking Process Flow
Ownership Model
Telecom Operators

Bank A

Bank A

Switch

Bank B

CBS of Bank A

IMPS

CBS of Bank B

Mobile Banking in DCCBs

BC Model
Customer
Customer
Customer

Other Bank
Switches

BC Network
BC Agent

BC Agent

MNO Gateway

Mobile Banking Platform ASP

Merchant Gateway
(Non-Banking)

22

Handbook On Mobile Banking

NPCI NFS

Bank Switch /
ASP /
Sponsor Bank Switch

Bank CBS

NUUP Based Mobile Banking Process Flow

Bank A

Telecom

Bank A CBS

Bank A

Bank B CBS

BAnk B

NUUP

IMPS

Handbook On Mobile Banking

23

Annexure IIList of Non-Banking Entities authorized by RBI

for Pre Paid Payment Instruments
(Source: RBI Notification dated August 4, 2014 regarding Certificates of Authorization issued by the Reserve Bank of India under the Payment and Settlement
systems Act, 2007 for Setting up and Operating Payment System in India)

Pre-paid Payment Instruments

1

Airtel M Commerce
Services Ltd.

The Chief Executive Officer; Airtel M Commerce Services Ltd.

Airtel Center, Plot No. 16, 6th Floor, Udyog Vihar, Phase -4,
Gurgaon Haryana 122001.

Pre-paid payment
instruments known as
Stored Value Card Wallet
(SCW)

30.06.2010
(Valid upto 29.06.2015)

Atom Technologies
Limited

The Chief Executive Officer; Atom Technologies Limited, 4th

Floor FT Towers, CTS 256 & 257, Suren Road, Chakala, Andheri
(E),Mumbai-400093.

Pre-paid payment
instruments

30.06.2010
(Valid upto 30.09.2014)

Citrus Payment Solutions

Pvt. Ltd.

The Chief Executive Officer, Citrus Payment solutions Pvt. Ltd.,

302, Swati Building, North Avenue Road, Off Linking Road,
Santa Cruz West, Mumbai 400 054

Pre-paid payment
instruments known as
Citrus Virtual Wallet

18.10.2013
(Valid upto 18.10.2018)

DigitSecure India Private

Limited

The Chief Executive Officer, DigitSecure India Private Limited,

Plot No: 1303 and 1304, 4th Floor, Khanamet, Hitech City,
Ayappa Society, Madhapur, Hyderabad - 500 081.

Pre-paid payment
instruments known as
HotRemit

23.07.2012
(Valid upto 22.01.2015)

Edenred (India) Private

Limited nee Accor
Services Pvt. Ltd.

The Managing Director & Chief Executive Officer, Edenred

(India) Private Ltd; Camera House, Majiwade Village Road
Majiwade, Thane (W) 400 601.

Meal vouchers and gift

vouchers in the form of
paper vouchers

29.10.2009
(Valid upto 31.10.2014)

GI Technology Private
Limited

The Director, GI Technology Private Limited, C-9, Thiru-Vi-Ka

Industrial Estate- Guindy, Chennai 600 032

Pre-paid payment
instruments known as I
Cash Card (ICC)

29.10.2009
(Valid upto 31.10.2018)

Idea Mobile Commerce

Services Ltd.

The Chief Executive officer, Idea Mobile Commerce Services

Ltd., 5th Floor, Windsor, Off C.S.T. Road, Kalina, Santacruz
(East), Mumbai 400 098

Pre-paid payment
instruments

25.11.2013
(Valid upto 24.11.2018)

India Transact Services

Limited,

The Chief Executive Officer, India Transact Services Limited,

ITSL, 14th Floor, Tower 3, Indiabulls Finance Center, S. B. Marg
Elphinstone Road (W) Mumbai 400 013

Pre-paid payment
instruments

30.05.2014
(Valid upto 31.05.2019)

Itz Cash Card Ltd.

The Chief Executive Officer, Itz Cash Card Limited, Top 14th
floor, Times Tower, Kamala City, Senapati Bapat Marg, Lower
Parel, Mumbai 400 013

Pre-paid payment
instruments

25.08.2009
(Valid upto 24.08.2015)

10

MMP Mobi Wallet

Payment Systems Limited

The Chief Executive Officer, MMP Mobi Wallet Payment Systems

Ltd.; A, E& F Blocks Voltas Premises, T B Kadam Marg,
Chinchpokli, Mumbai 400 033

Pre-paid payment
instruments known as
mRupee

30.12.2011
(Valid upto 31.12.2015)

11

Mobile Commerce
Solutions Limited

The Chief Executive Officer, Mobile Commerce Solutions

Limited, Peninsula Corporate Park, Ganpat Rao Kadam Marg,
Lower Parel, Mumbai 400 013

Pre-paid payment
instruments

08.11.2012
(Valid upto 07.11.2014)

12

Mpurse Services Pvt. Ltd.

The Chief Executive Officer, Plot No 38, Sector 32 Institutional

Area, Opposite Medanta Medicity Hospital, Gurgaon 122 001

Pre-paid payment
instruments

30.06.2014
(Valid upto 30.06.2019)

13

Muthoot Vehicle & Asset

Finance Ltd.

The Managing Director, Muthoot Vehicle & Asset Finance Ltd.

1st Floor, Cochin Dental Clinic Bldg. Market Road, Towards
Kombara, Kochi 682 014

Pre-paid payment
instruments only

29.10.2009
(Valid upto 31.12.2018)

14

My Mobile Payments
Limited

The Chief Executive Officer, My Mobile Payments Limited, 7th

Floor, MET Complex, Opp. Lilavati Hospital, Bandra West,
Mumbai 400 050

Pre-paid payment
instruments known as
Money-on-Mobile

24.10.2011
(Valid upto 31.10.2018)

24

Handbook On Mobile Banking

Pre-paid Payment Instruments

15

One97 Communications
Ltd.

The Chief Executive Officer, One97 Communications Ltd., B121, Sector 5, Noida, 201 301 Uttar Pradesh

Mobile based Pre-paid

payment instruments (MWallet)

07.08.2013
(Valid upto 06.08.2018)

16

One Mobikwik Systems

Private Limited

The Chief Executive Officer, One Mobikwik Systems Pvt. Limited,

758, 1st Floor, Udyog Vihar, Phase - V, Gurgaon-122 016
Haryana

Prepaid Payment
Instruments known as
Mobikwik Wallet

18.07.2013
(Valid upto 17.07.2018)

17

Oxigen Services (India)

Pvt. Ltd.

The Group President, Oxigen Services (India) Pvt. Ltd.; 257,

Udyog Vihar, Phase-1, Gurgaon 122 016 Haryana.

Pre-paid payment
instruments known as
Oxigen Wallets

18.01.2010
(Valid upto 31.12.2018)

18

PayMate India Pvt.

Limited

The Managing Director and CEO PayMate India Pvt. Limited,

111, 1st Floor, A- Wing, Sundervilla, SV Road, Santacruz (W),
Mumbai 400 054

Pre-paid payment
instruments known as
Paymate Wallet

28.04.2010
(Valid upto 30.04.2016)

19

Pay Point India Network

Private Limited

The Chief Executive Officer, Pay Point India Network Private

Limited, 2nd floor, Sushil Building, Kamala Nehru Compound,
Cross Road No. 1, Kandivali (W) Mumbai 400 067

Pre-paid payment
instruments known as
Pay Pointz

03.04.2012
(Valid upto 02.10.2014)

20

Pyro Telecommunications
Ltd.

The Chief Executive Officer, Pyro Telecommunications Ltd.,

8-2-293/82, Plot No. 264/A-31, Road # 92, Jubilee Hills,
Hyderabad-500033 Andhra Pradesh

Pre-paid payment
instruments

30.01.2014
(Valid upto 31.03.2019)

21

QwikCilver Solutions Pvt.

Ltd.

The Chief Executive Officer, QwikCilver Solutions Pvt. Ltd.,

#104, 1st Main, Vijay Jatti Building, 3rd Floor, 5th Block,
Kormangla Industrial Estate, Bangalore 560095.

Pre-paid payment
instruments

06.08.2013

22

Reliance Payment
Solution Limited

The Chief Executive Officer, Reliance Payment Solution Limited,

5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao,
Mumbai 400 002

Pre-paid payment
instruments known as
Jio Money

18.09.2013
(Valid upto 17.09.2018)

23

Smart Payment Solutions

Pvt. Ltd.

The Chief Executive Officer, Smart Payment Solutions Pvt. Ltd.

6/35, WEA Karol Bagh, New Delhi 110 005.

Pre-paid payment
instruments known as
PayCash

30.06.2010
(Valid upto 31.12.2018)

24

Sodexo SVC India Pvt. Ltd

The Chief Executive Officer, Sodexo SVC India Pvt. Ltd., Nesco
Complex, Gate No. 3, Indabrator Building, Western Express
Highway Goregaon (East); Mumbai 400063.

Meal vouchers and gift

vouchers in the form of
paper based vouchers
and Smartcard or
Smart Meal Card

25.08.2009

25

Tech Mahindra Limited

The Chief Executive Officer, Tech Mahindra Limited, A- 20,

Sector 60, Noida 201 301

Pre-paid payment
instruments (m-wallet)
known as MoboMoney

19.09.2013
(Valid upto 18.09.2018)

26

Transaction Analysts
(India) Private Ltd.

The Chief Executive Officer, Transaction Analysts (India) Private

Limited, 59, 3rd Cross, 17th Main, BTM Layout, Bangalore 560
068

Pre-paid payment
instruments

07.03.2014
(Valid upto 31.03.2019)

27

UAE Exchange &

Financial Services Ltd.

The Country Head- India, UAE Exchange & Financial Services

Ltd., Third Floor, Airline Building Opp. Maharaja college Ground,
M G Road, Kochi 682 011.

Pre-paid payment
instruments known as
Silver Card and Gold
Card

29.10.2009
(Valid upto 31.10.2014)

28

UTI Infrastructure
Technology and Services
Ltd.

The Chief Executive Officer, UTI Tower, Plot No. 3, Sector 11,
CBD Belapur, Navi Mumbai-400 614

Pre-paid payment
instruments known
as National Common
Mobility Card (NCMC)

21.03.2014
(Valid upto 31.03.2019)

29

Y-Cash Software
Solutions Private Limited

The Chief Executive Officer, Y-Cash Software Solutions Private

Limited, VGR Essor, 3rd Floor, No 1140, 17th Cross, 7th Sector,
H.S.R. Layout, Bangalore 560 102 Karnataka

Pre-paid payment
instruments known as
Y-PayCash

15.03.2012
(Valid upto 14.03.2016)

30

ZipCash Card Services

Pvt. Ltd.

The Director, ZipCash Card Services Pvt. Ltd., 25E/4 Model

Town, Bal Rajeshwar Road, Mulund (West) Mumbai 400 080

Pre-paid payment
instruments known as
ZipCash Coupons

29.10.2009
(Valid upto 31.10.2018)

Handbook On Mobile Banking

25

Annexure IIIList of IMPS Members

Source: NPCI Website as on September 16, 2014

IMPS Remittance

IMPS
Merchant
Payment

National Unified
USSD Platform
(NUUP)

S. No.

Bank Name

No. of MMID issued

(in lakhs)

Using MMID (P2P)

Allahabad Bank

0.21

Andhra Bank

9.44

Mobile/ ATM

Axis Bank

90.51

Mobile/Internet

Bank of Baroda

2.34

Mobile/Internet

Bank of India

11.25

Mobile

Bank of Maharashtra

0.04

Bassein Catholic Coop Bank

0.03

Mobile/Internet

BNP Paribas

0*

Mobile

Canara Bank

4.89

Mobile/ATM/Internet

10

Catholic Syrian Bank

0.10

11

Central Bank of India

0.13

Mobile/Internet

12

Citibank

3.09

Mobile/Internet

13

Corporation Bank

12.52

Mobile/Internet

14

Cosmos Co-operative
Bank

0.08

Mobile

15

Dena Bank

0*

Mobile

16

Development Bank of
Singapore

0*

Mobile

17

Development Credit
Bank

0.59

Mobile

18

Dhanalakshmi Bank

6.26

19

Dombivli Nagarik
Sahakari Bank

0.24

Mobile

20

Gopinath Patil Parsik

Janata Sahakari
Bank

0*

Mobile

21

Federal Bank

0.92

Mobile/ Internet

22

HDFC Bank

4.36

Mobile/ Internet

23

HSBC

0*

Mobile/Internet

24

ICICI Bank

204.15

Mobile/Internet

25

IDBI Bank

0.06

Mobile

26

Indian Bank

44.98

Mobile/ Internet

26

Handbook On Mobile Banking

Using Account No. &

IFS Code (P2A)

Active Channels
Mobile

Mobile

Mobile

Mobile

IMPS Remittance

No. of MMID issued

(in lakhs)

Using MMID (P2P)

IMPS
Merchant
Payment

National Unified
USSD Platform
(NUUP)

S. No.

Bank Name

27

Indian Overseas
Bank

7.66

28

Indusind Bank

0.61

Mobile/ATM/Internet

29

ING Vysya Bank

0.08

Mobile/Internet

30

Jammu & Kashmir

Bank

0*

Mobile

31

Janise Sahakari
Bank

0*

32

Janata Sahakari
Bank, Pane

0.03

33

Kallappanna
AwadeIchalkaranji
Janata Sahakari
Bank

0*

34

Karnataka Bank

29.81

35

Karur Vysya Bank

0.29

Mobile/ Internet

36

Kotak Mahindra Bank

33.90

Mobile/ Internet

37

Lakshmi Vilas Bank

6.89

38

Mehsana Urban Cooperative Bank

0.01

Mobile

39

Nainital Bank

0*

Mobile

40

NKGSB Co-operative
Bank

0.05

Mobile

41

Oriental Bank of
Commerce

19.55

Mobile

42

Punjab and
Maharashtra Co-op
Bank

0.47

Mobile

43

Punjab and Sind

Bank

0.06

Mobile

44

Punjab National
Bank

3.99

Mobile/ATM/Internet

45

Ratnakar Bank

0*

Internet

46

Saraswat Bank

0.18

Mobile

47

South Indian Bank

3.22

Mobile

48

Standard Chartered
Bank

0*

49

State Bank of
Bikaner and Jaipur

0.22

50

State Bank of
Hyderabad

0.32

51

State Bank of India

64.29

Using Account No. &

IFS Code (P2A)

Active Channels
Mobile

Mobile

Mobile

Mobile

Mobile

Mobile/ ATM

Mobile

Mobile

Mobile

Mobile/Internet

Handbook On Mobile Banking

27

IMPS Remittance
Active Channels

IMPS
Merchant
Payment

National Unified
USSD Platform
(NUUP)

Mobile

Mobile

0.19

Mobile

Syndicate Bank

0.41

Mobile

56

Tamilnad Mercantile
Bank

0.20

Mobile

57

Thane Janata
Sahakari Bank

1.83

Mobile

58

The A.P Mahesh

Urban Co-op Bank

0.02

Mobile

59

The Greater Bombay

Co-op Bank

0.54

Mobile

60

UCO Bank

0.56

Mobile/Internet

61

Union Bank Of India

17.02

Mobile/ATM/Internet

62

United Bank Of India

0.39

Mobile

63

Vijaya Bank

0.42

Mobile

64

Yes Bank Ltd

9.67

Mobile/ Internet

No. of MMID issued

(in lakhs)

Using MMID (P2P)

Using Account No. &

IFS Code (P2A)

State Bank of
Mysore

0.04

53

State Bank of Patiala

0.08

54

State Bank of
Travancore

55

S. No.

Bank Name

52

IMPS Remittance
Sr. No.

RRB/DCB/UCB

No. of MMID
issued (in
lakhs)

Pandharpur Merchant Co-operative Bank

0*

Kashi Gomti Samyut Grameen Bank

0*

Not applicable (#)

Gayatri Co-operative Urban Bank

0*

Mobile

Maharashtra Grameen Bank

0*

# As beneficiary
0* No. of MMID issued lesser than 1000.

28

Handbook On Mobile Banking

Using
MMID(P2P)

Using
Account
No. & IFS
Code(P2A)

Active Channels

Not applicable (#)

Not applicable (#)

IMPS
Merchant
Payment

National
Unified USSD
Platform
(NUUP)

IMPS Remittance
MPS
Merchant
Payment

Using
Account
No. & IFS
Code(P2A)

Active Channels

Mobile (Dial*400#)

Mobile/ Internet

Mobile/Internet

MMP Mobi Wallet Payment

Systems Ltd. (mRupee)

Internet

Mobile Commerce Solutions

(M-Pesa)

Mobile (Dial*400#)

Muthoot Vehicle and Asset

Finance Ltd

Internet

Oxigen Services

18.12

Mobile/ Internet

U E Exchange and Financial

Services

1.31

Mobile/Internet

Sr. No.

Prepaid Payments Instrument

Issuer (PPI)

No of Subscribed Users
(in lakhs)

Airtel Mcommerce Services

GI Technology

11.86

ITZ Cash Card

1.81

Using
MMID(P2P)

National Unified
USSD Platform
(NUUP)

Handbook On Mobile Banking

29

Annexure IVSTK Application on Operator SIM

This application can be embedded on operator SIM and
can be distributed to customers by the MNOs. Keys necessary for encryption are stored in the SIM. Transmission
of data can be either SMS or GPRS (data) channel. STK
application on operator SIM can be used by any customer, irrespective of handset. The STK application can be
standard menu-driven, interactive and user-friendly. This
technology is not yet in use in India.
The technology has following advantages:
Supports all standard phones and SIMs
Secure SMS and data communication channels usage

30

Handbook On Mobile Banking

Customers, merchants, BC agents of any bank can transact through this interface.
Following challenges need to be addressed to adopt this
technology:
For the existing SIMs, the MNO needs to support the
dynamic STK so that the application can be downloaded
over the air (OTA) which is technically feasible but may
be difficult for the older version of the SIMs.
The SIM cards (particularly the older ones) need to have
required space to store this application.

ABBREVIATIONS
AML

Anti-Money Laundering

BC

Business Correspondent

ASP

Application Service Provider

CBS

CORE Banking Solution

CDMA

Code Division Multiple Access

GPRS

General Packet Radio Service

GSM

Global System for Mobile

Hosted Solution

Software as a Service (SaaS) solution

IDS

Intruder Detection System

IMPS

Immediate Payment System

IRDA

Infrared Data Association

ISO

International Standards Organization

IVR

Interactive voice response (IVR) is a technology that allows a computer to interact with
humans through the use of voice and DTMF tones input via keypad

KYC

Know Your Customer

MMID

Mobile Money Identification Number (MMID)

MNO

Mobile Network Operator

mPIN

Mobile Personal Identification Number

MPFI

Mobile Payment Forum of India

M-Wallet

Mobile Wallet

NEFT

National Electronic Funds Transfer

NFC

Near Field communication

NPCI

National Payment Corporation of India Ltd.

NUUP

National Unified USSD Platform

OTP

One Time Password

PCI-DSS

Payment Card Industry Data Security Standard

PIN

Personal Identification Number

PPI

Pre-Paid Payment Instrument

RFID

Radio Frequency Identification

RTGS

Real Time Gross Settlement

SIM

Subscriber Identity Module

SMS

Short Messaging Service

TRAI

Telecom Regulatory Authority of India

USSD

Unstructured Supplementary Service Data

WAP

Wireless Application Protocol

Handbook On Mobile Banking

31

32

Handbook On Mobile Banking

Deutsche Gesellschaft fr Internationale

Zusammenarbeit (GIZ) GmbH
GIZ NABARD Rural Financial Institutions Programme

A-2/18, 4th Floor,

Safdarjung Enclave,
New Delhi 110 029
INDIA
Phone: +91-11-4949 5353
Telefax: +91-11-4949 5393
Email: detlev.holloh@giz.de