(Image source from: Mobile phones to become ATM)

After the new payments banks become operational, you may not have to depend on carrying cash in hand. Your mobile phones will turn as a virtual automated teller machine (ATM), bank branches and small-payments cheque-book. Thus going forwards, your mobile phone will take care of all basic banking needs like transferring money, paying bills and savings. This round of financial inclusion needs higher technology push than universal banking.

Amdocs’ India and South West Asia Business said, “In the long run mobile phone will eventually evolve into a full-fledged virtual bank branch and ATM. When the mobile financial services ecosystem matures and the economy becomes cash-less, most of the transactions would take place using mobile wallet.” Amdocs provides technology and services to banks, mobile operators and financial institutions for mobile banking.

Also Read: Payments Banks Seeking To Serve Poor Win Approvals In India

A mobile wallet will allow one to buy things, make online payments, off line purchases, money transfers, recive government subsidies and wages, withdraw money and deposit cash.

Mr Ahuja asked, “Why do you need to go to an ATM or bank branch if all your banking needs are satisfied on your mobile phone?”

Despite all such huge opportunities, mobile banking is in a nascent stage in India because of multiple challenges like lack of awareness, lack of matured ecosystem besides ineffective agent network.

-Sumana