RBI says mobile banking has miles to go to reach traction

Mumbai: The Reserve Bank has expressed its disappointment over the lower-than-expected spread of mobile banking in the country saying the awareness levels of this tool has been wanting. "Though mobile banking channel has the potential to be one of the key tools for achieving financial inclusion, the growth and acceptance of mobile banking as a channel of accessing banking service has been below expectation," the central bank said in its half-yearly financial stability report released earlier this week. The report listed a slew of reasons for the poor show such as low levels of awareness and acceptance, inability of banks to seed the mobile number with the account number, incompatible handsets, absence of collaboration and revenue sharing models between banks and mobile operators, and absence of USD channels for mobile banking among others. The RBI allows only a bank-led model for mobile banking, with only those banks having physical presence in the country are permitted to offer this service.As on date, as many as 78 banks, including a few regional rural banks, urban cooperative banks, offer mobile banking services in the country. However, on the payment and settlement system infrastructure, the report said it performed without any major disruptions.

Indian Bank revises interest rates

Chennai: Indian Bank has revised interest rates in foreign currency non-resident (banking) deposits with immediate effect. For FCNR (B) deposits in USD terms, the revised interest rates remains unchanged at 2.58 per cent for deposits of one year and above but less than two years. For deposits of two years and above but less than three years, the interest rates has been revised to 2.50 per cent from the existing 2.39 per cent, a bank statement said. Interest rates has been revised to 3.87 per cent from existing 3.66 per cent for deposits of three years and above but less than four years. For deposits of four years and above but less than five years the interest rates has been revised to 4.33 per cent from the existing 4.06 per cent. Interest rates has been fixed to 4.80 per cent for deposits of upto five years from the existing 4.51 per cent, the statement added.

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