We are witnessing a silent revolution
amongst our country folks. The belief that LessCash Transactions are beneficial
to the economy is growing.
We are ready to experiment with
Digital Transaction tools, as long as they are Safe and the charges are
reasonable.
In the last few years, there have been
numerous efforts by the stakeholders to promote Digital Banking channels.
One such channel is NPCI’s *99#
Channel.
The FAQs at the NPCI site encourage
bank’s customers to migrate to LessCash transactions from Cash transactions.
Q: What is Mobile
Banking?
Ans:
Mobile banking refers to the use of a smartphone or other cellular device to
perform online banking tasks while away from your home computer, such as
monitoring account balances, transferring funds between accounts, bill payment
and locating an ATM.
Mobile
Banking generally requires a Smartphone and Net connectivity. The other option
is SMS Based mobile banking.
EG:
ICICI Bank SMS Banking
Kotak
Mahindra Bank – Bharat
Banking APP
Union
Bank SMS
Banking
The data on number/type of
transactions is not published by any Bank.
Hence, it is difficult to judge the success/failure of SMS based banking.
Over a period of time, Financial institutions
explored USSD sessions for financial transactions.
Q: What is USSD?
Ans: USSD (Unstructured Supplementary
Service Data) is a Global System for Mobile(GSM) communication technology that
is used to send text between a mobile phone and an application program in the
network. Applications may include prepaid roaming or mobile chatting.
Read this to know more
about “What’s the difference between USSD, MMI and SS codes?”
The most popular usage of USSD is to access
the mobile balance. Each operator has his/her own USSD codes to access its
services.
This Google search quotes ‘ussd codes for
telecom companies in india’, provides the list of USSD codes of different
telecom companies in India.
Types of USSD - There are two types of options:
Push - Network pushed USSD service in which the network (MSC, VLR and
/ or HLR) sends the USSD message toward mobile subscriber.
Pull - Mobile Subscriber requested USSD with user sending a USSD
message towards the Gateway. i.e. using USSD Short Codes. e.g. *100
The only drawback of USSD is that it
is ‘Flash Memory ‘type, this means after the session is over, no data is stored
on the mobile.
USSD in Financial Sector: These
articles explore the various facets of USSD in financial sector.
Always
Active Mobile – USSD
Push
What
is USSD & Why Does it Matter for Mobile
Financial Services?
USSD in
Indian Financial Sector: - In India Banks started to use the USSD option,
only after NPCI unveiled its NUUP
service. Through the NPCI NUUP
service, banks could immediately launch the services, without the need to enter
into individual agreements with each telecom company. NPCI through the
aggregator model has taken care of this aspect.
SWOT
Analysis of the present *99# NPCI Service
|
Strengths
a) An App to mimic the *99#
commands
b) Proactive
Implementation Team
c) The basic framework
has been developed by NPCI and is in place. Banks need not individually
negotiate with Telcos on commercials or service level agreements.
|
Weakness
a) Charges levied by Telcos
b)
Service not available for Corporate Phone Connections
c)
Dependence on Telcos to complete the transaction cycle
|
|
Opportunities
a) Huge growing market
b) As minimal recurring costs are involved, banks can
popularise the *99# mobile banking channel
c) *99# services can be accessed from any part of the world, without any
additional costs viz roaming etc
|
Threat
a) No audit trial of requests raised
b) High transaction charges
c) Transaction charges for incomplete sessions too
|
21 ways to popularise *99# services in India
The
21 ways are broadly divided into 4 contributors:-
Contributor 1)
Regulatory -- Way 1 TO Way 5
Way
01) :: Free Transactions - 15 per month per bank account. Charge per
16th transaction, not to exceed INR1
Way
02) :: Telecom companies to be reimbursed for the free transactions from the
USOF Fund
Way
03) :: Fix upper limit per transaction, per day
Way
04) :: Establishment of Awards for promoting *99# service
Way
05) :: Publish Real time MIS like eTAAL
Contributor 2)
Banks -- Way 6 TO Way 10
Way
06) :: Launch Lite APPS for *99#
services
Way
07) :: Promote the ‘App’, through its
branches and on-field staff
Way
08) :: Setup dedicated Help Lines
atleast for the initial couple of years, till the stabilisation of *99#
services
Way
09) :: Explore ways and means to introduce more value added services to *99#
portfolio
Way
10) :: Encourage Peers viz Regional
Rural Banks, Urban Cooperative Banks to launch Apps to promote *99#
transactions
Contributor 3)
Telecom Companies -- Way 11 TO Way 15
Way
11) :: Popularise *99# facilities on all their communication channels
Way
12) :: Assist bank customers who visit their physical touch-points to install
the *99# App and guide them in the initial setup
Way
13) :: Do not be greedy for transaction
charges
Way
14) :: Launch similar Apps for their own USSD messages
Way
15) :: Create a win-win situation for its own customers and banking sector
customers to adopt LessCash tools
Contributor 4) Customers
-- Way 16 TO Way 21
Way
16) :: Use judiciously the limit of 15 free transactions
Way
17) :: Double check the relevant data,
before you execute a financial transaction
Way
18) :: Do not share your PIN with any one. Do not trust anyone except yourself
Way
19) :: Do not be greedy, and fall into quick money traps
Way
20) :: Spread the Joy of Safe Digital Transactions to your peers
Way
21) :: Give feedback to Regulators, Telcom Companies and Banks on ways and
means to increase the transactions under *99# channel.
Q)
What is USOF?
Ans:
As per the Indian Telegraph Act 1885 (as amended in 2003 and 2006), Universal
Service Obligation is defined as access to telegraph service to people in rural
and remote areas at affordable and reasonable prices.
The
USO Fund was formed through a Universal Access Levy of five% of the revenue
earned by the operators under various licences.
The
fund aims to boost connectivity in the rural areas.
Read
this Article to know the immense possibilities of USOF -
FinMin
conservative in allocation under USOF: Telecom
Secretary J S Deepak
The
following two Graphs (Source USOF website), highlight the resources and tools
available with USOF.
Q) What is eTAAL?
Ans:
eTaal is a web portal for dissemination of e-Transactions statistics of
National and State level e-Governance Projects including Mission Mode Projects.
It
receives transaction statistics from web based applications periodically on
near real time basis.
As
on 15th August 2016, 3,070 eServices have been integrated to the
eTAAL Portal.
Read
this Press
Release to understand the wonders of eTAAL
The economics of
financial *99# transactions through ‘Universal Service Obligation Fund’
15
lacs *99# sessions per month through 5 lacs users. No user has exceeded the
free limits i.e crossed 15 sessions.
Pay
out from USOF at INR1.50 per session = INR7,50,000.
Is
it not worth???
