An Introduction Final

8/7/2019 An Introduction Final

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Mobile banking (M-Banking,mbanking, SMS Banking etc.) is aterm used for performing balancechecks, account transactions, payments

etc. via a mobile device such as amobile phone or Personal DigitalAssistant (PDA). Mobile banking today(2010) is most often performed via

SMS or the Mobile Internet but canalso use special programs, calledclients, downloaded to the mobiledevice .


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As banking services moves from theunbiquitous branch to the internet, themobile phone lead the revolution in

financial inclusion. By 2020, nearly half of the countrys

population is is expected to use

handheld devices for bankingtransactions.


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As per ICICI, in 200494% transactions are through its

branches,3% at ATMs,2% through internet banking &

1% through its call centers.But Figures changed in 2009 ,13% branch transactions,46% ATM transactions,38% internet banking,mobile banking 1% &

3% through call centre.


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200 million mobile phone subscribers in India.

Financial services companies are now workingwith mobile payment players like mChek tooffer innovative mobile phone solutions tourban and rural Indian population.

Reserve Bank of India has restrictions on non-bank involvement in money transfer. Therefore,

development of mobile financial servicesapplications is being sponsored primarily bybanks in India.


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SECURITY FACTORy Security of financial transactions, being executed from someremote location and transmission of financial information over

the air, are the most complicated challenges that need to beaddressed jointly by mobile application developers, wirelessnetwork service providers and the banks' IT departments.

The following aspects need to be addressed to offer a secureinfrastructure for financial transaction over wireless network :

y Physical part of the hand-held device. If the bank is offeringsmart-card based security, the physical security of the device ismore important.

y Security of any thick-client application running on the device.In case the device is stolen, the hacker should require at least anID/Password to access the application.


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Security of any thick-client application runningon the device. In case the device is stolen, thehacker should require at least an ID/Password to

access the application. Authentication of the device with serviceprovider before initiating a transaction..One-time password (OTPs) are the latest tool

used by financial and banking service providersin the fight against cyber fraud.


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MOBILE BANKING IN THE WORLD

M obile banking has come in handy in many parts of the world with little or no Infrastructuredevelopment, especially in remote and ruralareas.This part of the mobile commerce is also very popular in countries where most of their

population is unbanked.In most of these places banks can only be

found in big cities and customers have to travelhundreds of miles to the nearest bank.


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C ountries like Sudan, Ghana andSouth Africa received this newcommerce very well.

In Latin America countries likeUruguay, Paraguay, Argentina, Brazil, Venezuela, C olombia, Guatemala and

recently M

exico started with a hugesuccess.


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Applications Supported

by Blocked Amount(ASBA) Facility


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ASBA is stipulated by SEBI(Security AndExchange Board Of India).ASBA means

Application Supported by Blocked Amount . ASBA is an application containing an

authorization to block the application money in the bank account, for subscribing to an issue.If an investor is applying through ASBA, hisapplication money shall be debited from thebank account only if his/her application isselected for allotment after the basis of allotment is finalized, or the issue is

withdrawn/failed.


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Detailed procedure of applying in

IPO through ASBA.y Under ASBA facility, investors can apply in any public/

rights issues by using their bank account.y

Investor submits the ASBA form (available at thedesignated branches of the banks acting as S C SB) afterfilling the relevant details to their banking branch by giving an instruction to block the amount in theiraccount.

y In turn, the bank will upload the details of theapplication in the bidding platform. Investors shallensure that the details that are filled in the ASBA formare correct otherwise the form is liable to be rejected.


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ADVANTAGES OF ASBA FOR

INVESTORS Applying through ASBA facility has the following

advantages:

The investor need not pay the applicationmoney by cheque rather the investorsubmits ASBA which accompanies an

authorization to block the bank account tothe extent of the application money.


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The investor does not have to bother about refunds, as in ASBA only that much money to the extent required forallotment of securities, is taken from the bank accountonly when his application is selected for allotment after

the basis of allotment is finalized.The investor continues to earn interest on the applicationmoney as the same remains in the bank account, which isnot the case in other modes of payment.

The application form is simpler.The investor deals with the known intermediary i.e. its

own bank .


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SELF CERTIFIED SYNDICATE BANK (SCSB)y SC SB is a bank which is recognized as a bank capable of

providing ASBA services to its customers. Names of such banks would appear in the list available on the

website of SEBI.

y List of Self C ertified Syndicate Banks (S C SBs) and theirdesigned branches i.e. branches where ASBA application form can be submitted, is available on the

websites of BSE (www.bseindia.com) and NSE(www.nseindia.com) and on the website of SEBI(www.sebi.gov.in). The list of S C SB would also be givenin the ASBA application form.


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Any Questions Or Queries????

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An Introduction Final