Money transfer through SMS banking
SMS banking is an
emerging mobile technology that allows users to request and receive banking
information from one’s bank on his / her mobile phone via Short Message Service
(SMS). SMS banking allows them to receive basic information regarding his / her
bank account using his / her mobile phone / GSM.
With this advanced SMS
banking system, people and corporate members can manage their bank accounts,
check their account balances, deposit money into their accounts, recharge their
mobile phone accounts, and perform money transfer and other banking
transactions using their mobile phones / GSM.
In simple term, SMS
banking is a revolutionary mobile technology that allows customers to request
and receive information from one’s bank on his /her mobile phone via Short
Message Service (SMS).
There is a huge need
of SMA banking around the globe. With SMS banking, most of the problems related
with other banking systems are resolved.
The National Payments
Corporation of India revealed the Combined Payments Interface, welcomed as a
next generation technology in the money transfer area that makes the payment as
simple as sending a text message on a mobile phone.
Under the new system,
payment process has become simpler as compared to other modes of online money
transfer such as Immediate Payments Service, National Electronic Funds Transfer
or Real-time Gross Settlement.
In new system of SMA
money transfer, people can transfer money to their relatives or friends through
a unique virtual address (virtual addresses are aliases to a bank account
allowing a customer’s account to be uniquely mapped), or mobile number, or
Aadhaar number.
Customers do not need
to know the payee’s IFSC code, bank account details for transfer of up to Rs
100,000 per transaction. Many leaders consider as a revolutionary development
in mobile money and decrease cash transactions in the country. It is a
wonderful option of increased smartphone usage and better embracing of novel technology.
Simple procedure to send money to a Receiver's mobile
wallet:
-Review the available
destination countries and Mobile Operators shown in the yellow box at right.
-Confirm that the
Receiver has a mobile wallet* with one of the listed Mobile Operators in the
destination country.
-Provide the Sender's
mobile number and an SMS notification will also be received when the funds are
delivered.
-The Receiver will be
notified by SMS* once the funds are delivered.
RBI launched UPI to money
transfer now as simple as a text message. With the Unified Payment Interface,
the customer will need only one app, instead of multiple ones.
Many bank officials
believe that UPI will improve the entire system because it will become an
important space for customer to make e-payments instead of just use the
alternative of simply withdrawing money in the form of cash from their bank
accounts.
The other important attribute
of this payment method is that it is inter-operable across different banks and
allows prompt payments.
UPI allows any bank
(participating in UPI) customer to download a UPI app of any bank and combine
all their bank accounts for transactions. This facility enable customers to
continue to use the same app unless the person changes the mobile phone or
number, as it serves as an identification. With UPI, customers need not to
transfer money from one bank account to a wallet. They can transact directly
from where their money is stored and saved.
The restriction in
electronic banking caused by inability to access the internet at demand, calls
for a banking system that is more suitable. SMS banking system offers this
convenience. A client using SMS banking system can perform bank transactions at
any time of the day and anywhere but there must be mobile telephone network coverage.
User has access to his mobile phone all day and at all times.
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