Role of Mobile Banking in Financial Inclusion

This paper highlights the importance of mobile banking in bringing about financial inclusion in India. It emphasizes its relevance in the Indian context, but the findings are applicable to poor residing in similar countries elsewhere. It also proposes a tripartite institutional arrangement between banks, post office, and mobile operators/business correspondents (BC) in order to facilitate financial inclusion. The paper covers the following sections in detail:

• Review of relevant literature on mobile banking services;
• Discussion on mobile banking and its presence in India;
• Issues regarding the adoption of mobile banking services with a focus on various major adaption theories;
• Solutions and recommendations with a discussion on proposed framework for financial inclusion using mobile banking;
• Suggestions for future research in areas like regulatory issues, security issues, and adoption processes.