Reserve Bank of India Governor D. Subbarao has exhorted banks and other financial institutions to take advantage of the expanded reach of the mobile communication technology for making banking services available to virtually every mobile phone user.
He stated that the mobile phone's integrated chip can function as a multiple application smart card and this holds substantial promise as the delivery vehicle of the future as there is huge potential and an exciting opportunity. Mobile phone users belong to all strata of society, spread across metropolitan centres, towns and villages and banks can take advantage of this expanded reach of telecom if they provide services through this medium. Security in an IT-based transaction-processing environment was equally critical necessitating the need for adequate controls. There was also the “human element” as studies across the world showed that a significant proportion of IT frauds were the work of insiders. In addition, banks should also pass on the benefits of lower costs from technology-based products and services to their customers, he added. IDRBT Director B. Sambamurthy welcomed the participants.