CHAPTER 1

INTRODUCTION ON MOBILE BANKING

1.1 INTRODUCTION
Mobile banking is one of the areas mobile commerce that has extensive communications
with other areas of mobile commerce. The one hand, mobile banking is associated with
customers and on the other hand, is capable of other firms that are active in the field of electronic
commerce, provide effective financial services. In this paper we describe the definition of mobile
banking, Evolution and finally to describe number of benefits for users of these services.
Mobile phones as a delivery channel for extending banking services have off-late been
attaining greater significance. The rapid growth in users and wider coverage of mobile phone
networks have made this channel an important platform for extending banking services to
customers. With the rapid growth in the number of mobile phone subscribers in India (about 261
million as at the end of March 2008 and growing at about 8 million a month), banks have been
exploring the feasibility of using mobile phones as an alternative channel of delivery of banking
services. Some banks have started offering information based services like balance enquiry, stop
payment instruction of cheques, transactions enquiry, location of the nearest ATM/branch etc.
Acceptance of transfer of funds instruction for credit to beneficiaries of same/or another bank in
favor of preregistered beneficiaries have also commenced in a few banks. In order to ensure a
level playing field and considering that the technology is relatively new, Reserve Bank has
brought out a set of operating guidelines for adoption by banks .
Technology plays an important role in banking sector. Banking is one of the largest
financial institutions constantly explores the opportunity of technology enabled services to
provide better customer experience and convenience. Mobile phone is a common technology
device that became part of every individual in the information era. Mobile Banking is an
emerging alternate channel for providing banking services. India is the second largest telecom
market in the world, which is having high potential for expanding banking services using mobile.
However, mobile banking has not become the choice of millions of people. The main objective
of this study is to identify the mindset and analyse the security issues in Mobile banking among
the banking customers in India.

1.2 OBJECTIVE OF THE STUDY

To study Service of Mobile Banking .
To study Issue and Challenges of Mobile Banking
To study RBI Regulations in India on Mobile Banking

1.3 METHOD OF RESEARCH

This Project is based from Secondary Data such as Reference Book , Magazine ,
Newspaper, Journals, e-book , e-data etc.

1.4 CHAPTER SCHAME

This study consist of following chapter:-

CHAPTER 2
OVERVIEW OF MOBILE BANKING
2.1 INTRODUCTION
Mobile banking is a system that allows customers of a financial institution to conduct a number of financial
transactions through a mobile device such as amobile phone or tablet.
Mobile banking differs from mobile payments, which involve the use of a mobile device to pay for goods or services either at
the point of sale or remotely,[1] analogously to the use of a debit or credit card to effect anEFTPOS payment.
The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction
of smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer
mobile banking on this platform to their customers.[2]
Mobile banking has until recently (2010) most often been performed via SMS or the mobile web. Apple's initial success
with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of
special client programs, called apps, downloaded to the mobile device. With that said, advancements in web technologies
such as HTML5, CSS3 andJavaScript have seen more banks launching mobile web based services to complement native
applications. A recent study (May 2012) by Mapa Research suggests that over a third of banks [3] have mobile device
detectionupon visiting the banks' main website. A number of things can happen on mobile detection such as redirecting to an
app store, redirection to a mobile banking specific website or providing a menu of mobile banking options for the user to
choose from.