Do you remember the ‘green ad’ from Idea. The base of that idea was protecting the trees. (Personally I don’t like that advertisement, I hate the way it is presented, but the theme was good). In the elaborated form of that advertisement they showcase mobile money transfer. The latest news in this regard is that “RBI says Yes to Nokia mobile money transfer” reports Businessline. The very news marks a leap in the banking and mobile phone technology front of this country.
At the end of 2008, there were an estimated 4 billion mobile phone subscriptions worldwide, according to the International Telecommunication Union. That’s about two cell phone subscriptions for every three people. By 2012, 190 million people will make mobile payments. (I got this information from internet).
In February 2010, BSNL announced the launch of it’s mobile banking platform. Which was in association with post offices across the country. SBI (India’s largest bank) and Yes bank expressed interest in this project. BSNL pilot project happened in Chandigarh. SMS money order will be the main attraction of the project as described by BSNL.
Another joke is that in US money money transfer facility is not in it’s full swing. Technologically advanced countries like Japan and South Korea are well ahead in this regard. Now the pilot project of mobile money transfer using Nokia mobile phones is happening in pune in association with Yes bank. The result of this project is crucial since based on this RBI is going to regulate the facility in the country.
The working mechanism as reports by Businessline
How it works is, you go to any of the two lakh Nokia’s retail outlets across the country and fill a form which makes you an account holder with YES Bank. Nokia promises that the process will not take more than 15 minutes. Then you deposit a amount at the Nokia outlet and in minutes the ‘credit’ appears on your mobile phone. You are ready to go. You can make payments at shops, pay electricity and water bills and even transfer funds to another person.

What will be the advantages: This move will definitely change of the banking system in the country. India has now got an estimated 45 Cr mobile phone subscribers. The market is booming like anything. GPRS enabled mobile phones will be the next attraction and more and more companies will be ready to invest in this sector.
The cost regarding the transaction is not yet finalized. Which is a key factor if we consider India as a market. Once it happens more banks will be participated provided RBI approval. Mobile money transfer will take India to next level of development. The quality of service by the companies will be very important because according to available information company outlets are going to use to collect money. If it is not done properly will lead to a parallel banking system in the country.
Urban area in India will be beneficial for sure, but what about the villages (where majority of Indian population resides). Mobile money transfer project should be an inclusive one.