The National Payments Corporation of India (NPCI) has reported that only 67m or 7.4% of the country’s mobile phones are linked to bank accounts.
In India there are 900m mobile phones and over 450m bank accounts.
NPCI managing director and CEO Abhay Hota said: "The number of active mobile users in the country is between 500 and 600m, while the total connections are around 900m.
"Out of these active users, 90% around 400m users have bank accounts. Of these however, only 67m mobiles are linked to their bank accounts."
Hota said that even though the Reserve Bank of India has mandated SMS alerts for every transaction, mobile-based payment systems will take off only when each and every existing customer is serviced better.
Hota also referred to the need for simplifying mobile app downloads as well as the need to offer local language options, saying: "We cannot expect any inclusion without having systems in local languages."