With a view to facilitate timely and reliable communications, the Telecom Regulatory Authority of India (TRAI) has recently introduced new regulations on Mobile Banking Services.
As per the reforms, banks and its customers will be entitled to use SMS, Interactive Voice Response (IVR) and Unstructured Supplementary Services Data (USSD) for transaction purposes apart from WAP and SIM Application ToolKit (STK). The response time for delivery of messages will be <= 10 seconds for SMS, IVR and <= 2 seconds for USSD.
The service providers have also been directed to complete the banking communications about cash deposit, cash withdrawal, mobile transfer, balance enquiry in not more than two stages. They have to use separate telecom resources for routing ‘transactional’ messages only.
The delivery confirmation about such messages will be sent to both – the customer and the bank. However, in case the message is not delivered due to network or handset related issues, a USSD communication will have to be sent to the customer informing completion of the transaction.
Apart from the said, the authority has also laid down the following parameters for mobile-based transactions:
- Quality of services: The success rate of transactional message delivery has been fixed at 99.5% while the updation of this information in the system has to be 100%.
- Privacy and Security: It is mandatory for all the access providers to ensure security and confidentiality of m-banking communications. Detailed records of all the banking transaction message has to be preserved for minimum time duration of 6 months for audit purposes. The same will be monitored by TRAI for quality checks at regular intervals.
With these reforms coming into effect, the customer and banks are assured of availing basic Mobile Banking services in much faster and safe manner.