With an aim to provide financial inclusion through mobile phones, the Telecom Regulatory Authority of India (TRAI) has released a consultation paper, seeking service providers? views on the use of unstructured supplementary service data (USSD)-based mobile banking services.
TRAI has asked operators to send their comments on whether USSD is one of the best modes for mobile banking, and if it is appropriate to fix a ceiling of Rs 1.50 per USSD session. The stakeholders are required to submit their comments on the subject by October 4, 2013 and counter comments by October 11, 2013.
According to TRAI, USSD is one of the most promising medium to promote mobile banking amongst users. The regulator is of the view that USSD-based platform has the potential to promote banking services amongst a large section of unbanked as well as under-banked consumers, particularly in rural areas. The regulator says that as per the Census 2011, only 54.4 per cent of the rural households have access to banking services. Therefore, it is essential that financial services are provided at an affordable cost to those who are presently excluded from the formal financial system.
