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But despite the addition of around seven million mobile users every month, bank officials feel it is too early to gauge the success of mobile banking in India. "Mobile banking is still in its nascent stage, and we will have to wait and watch if it really changes the way
we bank," officials from various banks echo.

Mobile banking has been at the threshold of a revolution for some time. While many operators, as well as banks, had introduced mobile banking applications, it never became popular due to security concerns. The number of people using mobile banking services has jumped from under 10,000 to 120,000 in two years. While the trend is growing, lack of awareness of services, apart from perceived security issues, are inhibiting faster take-off.

There is yet another reason why the service will not spread like wild fire - the credit environment. RBI has been tightening the banks, which have been offering unsecured and secured loans with minimal or no customer verification. With RBI tightening liquidity, personal loan defaults have reached 9% and banks will be very wary of giving you a credit card on the mobile.

Though RBI has specified norms for the banks to provide secure technology and ensure 'confidentiality, integrity, authenticity and non-reputability', security remains a major concern as well as a hurdle. However, with a few precautions and safety measures, users can have a safer m-banking experience. The m-PIN, which is issued by the bank, should be memorized and the PIN-mailer destroyed immediately. Change your m-PIN regularly and do not share it with anyone. The PIN is valid only for the corresponding phone number, which means users cannot access their accounts using other hand-sets. Thus, in case of a loss/theft of mobile phone, inform the mobile phone operator as well as the bank to block the banking application. Similarly, you should also inform the bank, if you change your hand-set or SIM card.

Reserve Bank of India has set-up the Mobile Payments Forum of India (MPFI), a 'Working Group on Mobile Banking' to examine different aspects of Mobile Banking (M-banking). The Group had focused on three major areas of M-banking, i.e.,
(i) technology and security issues,
(ii) business issues, and
(iii) regulatory and supervisory issues.

However, to start with, we must understand who the various stake-holders are, and what there expectations are.

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* Contributed by: -
Prof. Pooja S. Kushwaha is a Science Graduate, has 2-Years Advance Diploma in IT from Regional Engineering College, Jaipur, cleared 'O' Level from DOEACC, M.C.M, M.C.A. Presently working as Faculty - Information Systems at ICFAI Business School, Indore. She has presented various research papers in different conferences & seminars, and also published the same in national journals.
Article posted on October 26, 2008.