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.

It can be appraised that the SMS banking system is highly feasible and potential in countries where internet infrastructure obstructs the access to electronic banking services and inconvenience of accessing ATM machines. This system will be most beneficial to financial institutions and banks that intended to offer affordable remote banking services to its clienteles.

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