Kerala-based banks have been recording increased volumes and value in mobile-based transactions.
There has been steady increase in the transactions during the past three months, as per data available with the Reserve Bank of India. The overall trend is the same in most banks across the country.
The total volume of mobile transactions executed by various banks in the country in January was 18.07 million, corresponding to a value of Rs.129.17 billion.
The volume in February was 17.91 million, valued at Rs.140.66 billion. In March, the volume was 19.76 million, with a value of Rs.169.14 billion.
Among the Kerala-based banks, State Bank of Travancore, South Indian Bank, and Federal Bank were among the prominent players in the mobile transaction segment.
Volume and value
The volume and value registered respectively by South Indian Bank in January were 76,518 and Rs.134.57 million. Federal Bank recorded a volume of 61,654 corresponding to Rs.132.47 million. SBT marked a volume of 87299 against a value of Rs.68.94 million.
In February, South Indian Bank recorded a volume of 75,346 and a value of Rs.145.76 million. Federal Bank’s figures for the month were 58,497 corresponding to Rs.136.02 million. SBT had a volume of 79,508 representing Rs.68.92 million.
In March, South India Bank recorded a volume of 11,3276 representing Rs.219.03 million. Federal Bank had a volume of 71,094 against a value of Rs.159.67 million. SBT registered a volume of 94,849 corresponding to a value of Rs.84.50 million.
Mobile platform is one of the channels that the RBI has been embarking on to extend services in banking to unbanked and under-banked areas. RBI had set up a technical committee to recommend options to expand the mobile-based banking and a report was submitted in February last year.
The committee studied issues such as feasibility of using encrypted SMS-based funds transfer facility and challenges faced in mobile banking. It observed that mobile banking can increase revenue to mobile network operators and reduce costs to banks.
One of the key recommendations was the need for an approach by banks to offer a ‘product in a box’ encompassing SIM card registration, enrolment and authentication to make the operation convenient and easy for the customers.
