MOBILE BANKING: A TOOL FOR FINANCIAL INCLUSION

Mobile banking involves provision of financial services through the medium of mobile phones. It assumed significance as a major tool for promoting financial inclusion. This is especially so in developing countries which were characterized by inadequate banking system, large unbanked population, cash based transactions, dependence on informal means for transferring funds. Mobile banking came to be viewed as an alternative to cash and traditional paper based system of banking as the number of mobile subscribers was more than bank account holders. Mobile technology is used to provide financial access to unbanked population thereby enabling them to undertake financial transactions with greater convenience and without any additional cost. Several countries especially in the Sub Saharan African region have adopted it with varying degrees of success and achieved financial inclusion to some extent. The present study explores the models adopted for mobile banking in Indian context, its potentiality in achieving financial inclusion, progress achieved so far and suggestions for addressing the weaknesses.