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TRAI issues new regulations for mobile banking

The Telecom Regulatory Authority of India, TRAI, has issued the new regulations for mobile banking in order to ensure faster and reliable communication for banking through mobile phones. The Regulator said in New Delhi, mobile companies have to enable banks to complete a transaction within ten seconds under the new rules.

Telecom companies have to give banks and customers the option to transact using either SMS, Interactive Voice Response, IVR, or Unstructured Supplementary Service Data (USSD). USSD, is used by operators to inform pre-paid cards users about their balance on a real-time basis. The service providers can also optionally facilitate the bank to use WAP or Sim Application Toolkit (STK). STK has been deployed by many mobile operators around the world for many applications, often where a menu-based approach is required.

All the operators are already using these platforms and hence do not have to make additional investments.The response time for delivery of messages for mobile banking services generated by the customer or the bank will be within the prescribed time-frame of less than 10 seconds for SMS, IVR, WAP and STK, and less than 2 seconds for USSD. The regulations are aimed at ensuring that mobile operators offer good services to banks that launch mobile banking services.

The regulations also mandate that if the SMS sent by the bank is not delivered to the customer due to network or handset-related problems, then a USSD communication confirming the completion of the transaction should be sent. The regulator has also made it mandatory for operators to ensure that, to get the benefit of banking services such as cash deposit, cash withdrawal, money transfer and balance enquiry, the customer should be able to complete the transaction in not more than two stages.

Every access provider needs to maintain records of mobile banking messages for six months for audit purposes. TRAI will monitor the quality of services offered by the mobile operators on a regular basis.



  1. How to use mobile banking services from my mobile...? I am not having any high-end mobile, can I still use mobile banking services??


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