The Reserve Bank of India has emphasised that the low usage of mobile banking applications in the country is mainly due to the lack of collaboration and revenue sharing models between banks and mobile operators.
According to the RBI’s half-yearly financial stability report, the growth and acceptance of mobile banking as a channel of accessing banking service has been "below expectation."
Mobile banking channel is considered to be a key tool for achieving financial inclusion in India, RBI said in the report.
The other major factor for slow growth of mobile banking services is the inability of banks in the country to seed the mobile number with the account number and handset incompatibility.
Currently, 78 banks have been granted permission to provide mobile banking services in India by the RBI.
Furthermore, RBI has set up a Technical Committee on mobile banking to examine the feasibility of introducing encrypted SMS-based funds transfers across all mobile handsets.