Understand How Mobile Banking Works
Many individuals have begun to store their money, jewellery, and other valuable assets using bank accounts. They tend to keep them in a safe position where there is no fear of misuse or misplacement. All these facilities enable India's people to start planning for the future and invest in other financial tools to benefit from lifetime returns.
All services have become digitalised after the invention of smartphones and electronic devices. Banks have started offering mobile banking services for account holders to track their transactions, pay their bills, transfer funds to other accounts, etc. using their phones. They do not have to run to the bank for small tasks and concentrate on other priorities.
Online banking operates using SMS, mobile web, or specialised applications for Android and IOS devices. The SMS facility includes mobile texts and alerts for the transfer of funds, checking the bank account balance, paying bills, and lots more. Users can log on to their accounts using the web browser to initiate the payment.
E-banking applications connect users directly to the bank's server without using a mobile web browser. People can download them from several platforms. Some banks also offer additional services like person-to-person payments (P2P), account rewards confirmation, and Remote Deposit Capture (RDC) facility. RDC enables account holders to scan checks and transmit the images to banks for clearing. Customers can transfer their money faster while automating further deposits.
Why does it matter?
Internet banking is beneficial for every consumer. It helps them manage administrative tasks without hindrance, including closing a sale, meeting new customers, or smoothing back office shipping glitches. Banks can focus on fulfilling the demands of their customers while managing processes technologically.
Nowadays, many apps are introduced on several OS platforms to support and promote digital banking in India. One of them is the BHIM app which is a payment app that works without an internet connection. Users can dial *99# from their phones and use the features. Following are the facilities available on this application:
(i) Transferring funds: Many users can send money to other people in need using the Virtual Payment Address (VPA) or a combination of the Account Number and IFSC. The payer must scan the QR code for sending the funds.
(ii) Requesting money: The app can help people facing financial issues by enabling them to initiate a collect request using the Virtual Payment Address (VPA). They can also transfer money using their registered mobile numbers.
(iii) Transactions: Users can also check their transaction history, account balance and pending BHIM UPI collect requests. They can report issues as well.