Chandigarh became the first city in India where the private sector YES Bank, in association with Nokia and Obopay India, global leader in mobile payment technology launched ‘Mobile money services by YES bank.’ The bank started its service commercially today and it has plans to extend this across India in a phased manner.
The service enables transfer of money using the mobile device in a secure manner. Named as ‘Mobile money services by YES Bank, powered by Nokia,’ it would augment financial inclusion amongst the unbanked and under-banked consumer segments by bringing financial services to the consumers mobile device.
It would enable consumers to transfer money to other individuals, pay utility bills as well as recharge prepaid SIM cards(top-ups) by using their mobile devices. Subsequently, consumers would also be able to pay merchants for goods and services through their mobile devices. This is the first of its kind, providing customers the ability to initiate mobile payments through multiple channels i.e SMS, IVR, WAP, JAVA and FIRE.
Speaking to Business Standard, Yes Bank, Group-President-Transaction Banking Group, Suresh Sethi said, “The mobile penetration in Chandigarh is about 95 per cent with Rs one lakh per capita income, so it holds tremendous potential for implementation of new and innovative technology cutting edge technology services.
This initiative will provide consumers in the city with greater ‘Anytime Anywhere’ convenience and will be significant milestone on the path of financial inclusion. This service would eliminate dependence on the physical presence of a branch or availability of internet banking services and will successfully ride on the deep penetration of mobile services in the region.”
He added it would play an important role in India in linking common man with the bank as there are 600 million subscribers in India and 46 per cent of the mobile users doesn’t have any bank account.
Earlier this year, Yes Bank, received regulatory approvals from the Reserve Bank of India (RBI) to act as the issuing bank and the custodian of funds under these services.
The commercial rollout of Mobile money services by YES bank in Chandigarh follows the successful implementation of its global commercial pilot, which began in Pune in January this year. It is delivered in partnership with Obopay, a pioneering service provider for payments via mobile phones which Nokia invested in earlier this year. The Service is based on Obopay’s mobile payment platform with uniquely developed mobile elements, including an interface that is as simple and convenient as sending an SMS or making a voice call.
Nokia will also extend its widespread retail channel of over 52 retail and care outlets in the city. Nokia retail and distribution partners will act as banking correspondent agents appointed by the bank in compliance with RBI guidelines, where prospective customers can register for this service, deposit money, or withdraw cash from their accounts.