Financial Inclusion Through M-Banking Services: Scope and Problems in India

With the help of modern information communication technology, m-banking as a new type of banking services carrier can provide efficient and effective financial services for unbanked and rural peoples in India. Increased cellular service users in rural Indian provide wide opportunity to expand m-banking service in India. However, in spite of opportunities there are numbers of problems and threats in m-banking system. Their major shortcomings are network coverage, security, low cost effectiveness, inconvenience in using mobile handset, IT literacy etc. The outcome of the paper is a defined set of customer requirements to m-banking services in India and an explanation of major failure reasons along with opportunities for their improvement.