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Name: Ghanashyam Birua ROLL NO: 14202261 Sec: B Dept.: Mba I Subject: Economics Assignment 3

Mobile companies have agreed to allow basic banking services like funds transfers and account balances via SMS without internet access. The leading telecom companies in India have signed agreements with the National Payments Corporation of India to provide these SMS-based banking services using Unstructured Supplementary Service Data. Users will be able to access these services for Rs. 1.50 per SMS. This development will benefit consumers, especially in rural areas, by making basic banking more convenient and accessible via feature phones. It could increase savings and financial inclusion. Banks may also gain new customers and insights into customer behavior. While telecom companies could lose some internet revenue, they could also attract new customers and develop new business opportunities.

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37 views2 pages

Name: Ghanashyam Birua ROLL NO: 14202261 Sec: B Dept.: Mba I Subject: Economics Assignment 3

Mobile companies have agreed to allow basic banking services like funds transfers and account balances via SMS without internet access. The leading telecom companies in India have signed agreements with the National Payments Corporation of India to provide these SMS-based banking services using Unstructured Supplementary Service Data. Users will be able to access these services for Rs. 1.50 per SMS. This development will benefit consumers, especially in rural areas, by making basic banking more convenient and accessible via feature phones. It could increase savings and financial inclusion. Banks may also gain new customers and insights into customer behavior. While telecom companies could lose some internet revenue, they could also attract new customers and develop new business opportunities.

Uploaded by

ChandanMatolia
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NAME: GHANASHYAM BIRUA

ROLL NO: 14202261


SEC: B
DEPT.: MBA I
SUBJECT: ECONOMICS ASSIGNMENT 3
Topic: Telcos Agree on Mobile Banking Through SMSes
Synopsis of the News:
Mobile companies agreed to the proposal of the government to facilitate banking operations like fund
transfer, balance inquiry in savings account, change of PIN, mini statement, cheque book request etc
through simple text messages from ordinary mobile handsets and without accessing the internet. The
leading telecom companies of India have signed pact with National Payments Corporation of India
(NPCI) in last two months. It will operate on Unstructured Supplementary Service Data (USSD)
channel of the telcosa simple interactive text messaging system that allows credit and debit card
transaction. The users will be able to avail the services only at Rs 1.50 per SMS.
Analysis of the utility of the news:
(a) On the Consumers:
The development facilitates the consumers having an ordinary handset to access their bank accounts
with out accessing the internet or going to the bank. This can fulfil the following utilities of the
consumers,
It will help the consumers especially in rural areas to access their bank account and carry out
basic operations easily reducing the problem of travelling to the bank and standing in queue.
This will ease their experience regarding banking.
The consumers will be encouraged to use their bank account more often which can increase
their savings in the bank and also better fund management.
It will also help consumers to send fund to various parts of the country where their relatives
are when they are in need of fund.
It will reduce the cost associated with travelling to bank and the facility will be available at a
cheaper and affordable price.
It will also be user friendly, as it does not require and any difficult technical knowledge so
more number of people can avail it.
It will also increase the awareness among the consumers about the facets of banking and
accessories work.
(b) On the Banks and other financial institutions:
The development will also facilitate the banks and other financial institutions to reach their customers
easily and satisfy their wants which eventually will help them to expand their business and retain their
customers. It will also help them to access the behaviour of the customers and accordingly they will
be able to develop their services for better customer satisfaction.
(c) On the telcos:
The telcos as it seems is at a loss because of the development as their revenue from the internet
services may reduce due to the development but it can also help them to attract new customers and
develop and expand their business.

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