Banking on the smartphone
On the other hand, research firm Juxt, in its India Mobile Landscape (IML) 2013 report, says India has 55.48 crore mobile users. More than 29.8 crore or about 54 per cent of these device owners are in rural areas compared to 25.6 crore in cities and towns.
Keeping this is mind, it is not surprising that the RBI, in its recent announcment, gave an in-principle approval to set up a payment system where all you need is a mobile phone to withdraw money from an ATM even without having a bank account.
Even as there are several modes currently available for remitting and receiving money, the RBI has added an innovative model for monetary transaction for individuals across the country.
“Cashing out is important for remittances because we have a large recipient population in the country most of whom do not have access to formal banking services,” the RBI Governor, Raghuram Rajan said while talking about this payment system. “We need more such innovative products, some of which mobile companies are providing.”
Now banks are working towards increasing their ATM network so that this facility is