UNIT – V

E- BANKING

Meaning of E- Banking
E-banking is an arrangement between a bank or a financial institution and its
customers that enables encrypted transactions over the internet. Short for electronic banking,
E-banking has various types that cater to customers' different requirements, which can be
resolved online.
E-banking is also helpful for non-financial transactions such as changing your ATM
PIN, getting a mini statement, updating your personal details, balance inquiry or printing an
account statement. Essentially, it refers to any transaction that doesn't involve any movement
of funds to or from your account.
Difference between Traditional Banking and E- banking

Basis Traditional Banking E- Banking

E-Banking Practices involve
Traditional Practice provides
Global Coverage global coverage while sitting
limited coverage.
at home/office.
E-Banking provides the
Traditional Practice does not facility of marketing of
Marketing Tool
provide proper marketing tools. products/ schemes online
easily.
Traditional Practices involves E-Banking same lot of line as
Prompt Services process which requires more there is no need to stand in
time. long queues.
With the system of
Traditional banking practices do
Reduction of reconciliation of inter-branch
not provide a complete check on
errors/ Frauds transactions, frauds and errors
banking transactions.
could be reduced.
Cost and time could be
Bank executives have to perform
reduced or everything is to be
Paperwork a lot of paperwork which
through some interval and no
increases both time and cost.
need for huge paperwork.
E-banking provides banking
In the case of traditional
Risk of carrying without carrying cash as
business, a person has to carry
cash plastic money (ATMs, Credit
cash at each point of time.
cards are available)

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E- DELIVERY CHANNELS
Internet Banking
Internet banking, also known as online banking or e-bankingor Net Banking is a
facility offered by banks and financial institutions that allow customers to use banking
services over the internet. Customers need not visit their bank’s branch office to avail each
and every small service.
Features of Online Banking
 Check the account statement online.
 Open a fixed deposit account.
 Pay utility bills such as water bill and electricity bill.
 Make merchant payments.
 Transfer funds.
 Order for a cheque book.
 Buy general insurance.
 Recharge prepaid mobile/DTH.
Advantages of Internet Banking
The advantages of internet banking are as follows:
 Availability: You can avail the banking services round the clock throughout the year.
Most of the services offered are not time-restricted; you can check your account
balance at any time and transfer funds without having to wait for the bank to open.
 Easy to Operate
 Convenience
 Time Efficient
Automated Teller Machines (ATMs)
 An automated teller machine also known as an Automated Banking Machine
(ABM) is an electronic telecommunication device that enables the customers of a
financial institution to perform financial transactions, particularly cash withdrawal,
without the need for a human cashier, clerk or bank teller.
The Services Normally Offered At An ATM Are:
 Cash withdrawal
 Cash Deposit
 Account information
 Regular bills payment
 Balance Enquiry
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  Mini Statements
 Money Transfer
 Purchase of Re-load Vouchers for Mobiles
Types of ATMs
 White Label ATM: White Label ATMs are those ATMs which set up, owned
and operated by non-bank entities. To aid financial inclusion and drive ATM
penetration in the country the Reserve Bank of India has permitted the launch of
White Labelled ATMs (WLAs) i.e private non-bank companies to set up, own and
operate its own brand of ATMs in the country. These white label ATMs will not
display logo of any particular bank. TATA launched the first white label ATM in
India under the brand name of Indicash.
 Brown Label ATMs: These ATMs are owned and maintained by service provider
whereas a sponsor bank whose brand is used on ATM takes care of cash
management and network connectivity.
 Onsite ATMs: These are ATM machines that are set up in the premises where
there is a bank branch so that both the physical branch and the ATM can be
used. This is known as being on site and this can be used for several purposes. Many
people can use this to avoid the lines that are present in the branch and hence save on
the time required to complete their transactions.
 Offsite ATMs: These are the machines that are set up on a standalone basis. This
means that the bank has a place where there is only an ATM machine then this
becomes an offsite ATM. This is done to ensure that the bank reaches out to more
geographical areas and that people are able to use its services even when there is no
bank branch in the area.
Point-of-sale (POS) terminal
 A point-of-sale (POS) terminal is a computerised replacement for a cash register
which can process credit and debit cards. A customer needs to enter a card PIN to
complete the transaction using the PoS terminal.
How to install one?
 If you are a merchant, then you can request the bank where you have an account to
install PoS machines at your establishment.
What are the charges?
 The end-customer does not have to pay any charges for swiping his or debit/credit
cards at the PoS terminals.
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Separate charges for debit and credit cards
 MDR is capped for debit cards but not for credit cards. Effective July 1, 2012, RBI
capped the MDR for debit cards at 0.75 per cent of the transaction amount for value
up to Rs.2,000 and 1 per cent for a transaction amount for value above Rs.2,000. For
credit cards, the MDR varies between 1.5 per cent to 2.5 per cent. Following the
withdrawal of legal tender status to the old Rs.500 and Rs.1,000 currency notes, RBI
had asked banks to waive off the MDR till the end of December. Last week, RBI also
lowered the MDR cap for debit cards effective between January 1 to March 31, 2017.
In this period, MDR is capped at 0.25 per cent for debit card transactions up to
Rs.1,000 and 0.5 per cent for transactions above Rs.1,000 up to Rs.2,000.
Mobile Banking
 Mobile banking is a facility which enables customers to initiate and/or perform
banking tasks on their mobile phones. This is provided by most of the banks in
India and abroad. Customers can use mobile banking to view their account balance,
make instant fund transfers and pay bills, etc.
 There are various types of mobile banking, viz. via SMS, USSD and mobile apps.
Some of the banks like SBI, have incorporated services like loan approval and linking
of insurance policy in their mobile banking apps. Let us read the features and benefits
of mobile banking and how to use mobile banking.
Banks provide mobile banking services to their clients in the different ways listed here:
 Mobile Banking over mobile applications (for smartphones; e.g. SBI Yono and
iMobile by ICICI Bank, etc.)
 Mobile Banking over SMS (also known as SMS Banking)
 Mobile Banking over Unstructured Supplementary Service Data (USSD)
Immediate Payment Service (IMPS)
The full form of IMPS is an Immediate Payment Service. It enables 24 x 7
electronic fund transfer services in which the transaction is carried out between two
bank accounts in real-time and on an immediate basis. IMPS fund transfer can be done
through online banking as well as mobile banking. Immediate Payment Service was
launched in 2010 and is now one of the most widely-used forms of electronic payments
across India.
Objectives of IMPS
 To enable bank customers to use mobile instruments as a channel for accessing their
banks accounts and remit funds
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  Making payment simpler just with the mobile number of the beneficiary
 To sub-serve the goal of Reserve Bank of India (RBI) in electronification of retail
payments
 To facilitate mobile payment systems already introduced in India with the Reserve
Bank of India Mobile Payment Guidelines 2008 to be inter-operable across banks and
mobile operators in a safe and secured manner
 To build the foundation for a full range of mobile based Banking services.
IMPS Transfer via MMID and Mobile Numbers
 With IMPS it’s easier to transfer money through your mobile number. All you need to
do is register your mobile number for IMPS service with your bank (can do it online
as well). If not online you can visit the nearest bank branch and get this done. Once
your mobile number is registered, you will be given a 7-digit MMID code from
your bank. MMID code is essential to initiate IMPS transfers through your mobile
number.
With your MMID number, the funds can be transferred easily using the following steps:
 Simply log in to your mobile banking app with your User ID and password
 You will see the fund transfer section on the app, there you can select the IMPS
option
 Now enter the beneficiary’s details like the bank account number, mobile number, and
the MMID code
 After this, you can simply verify the transaction using an MPIN or by entering the
OTP sent you to via SMS
Unified Payments Interface (UPI)
 Unified Payments Interface (UPI) is a system that powers multiple bank accounts
into a single mobile application (of any participating bank), merging
several banking features, seamless fund routing & merchant payments into one
hood. It also caters to the “Peer to Peer” collect request which can be scheduled and
paid as per requirement and convenience.
 With the above context in mind, NPCI conducted a pilot launch with 21 member
banks. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan,
Governor, RBI at Mumbai. Banks have started to upload their UPI enabled Apps on
Google Play store from 25th August, 2016 onwards.

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Features of UPI
 Immediate money transfer through mobile device round the clock 24*7 and 365
days.
 Single mobile application for accessing different bank accounts.
 Single Click 2 Factor Authentication – Aligned with the Regulatory guidelines, yet
provides for a very strong feature of seamless single click payment.
 Virtual address of the customer for Pull & Push provides for incremental security with
the customer not required to enter the details such as Card no, Account number; IFSC
etc.
 Bill Sharing with friends.
 Best answer to Cash on Delivery hassle, running to an ATM or rendering exact
amount.
 Merchant Payment with Single Application or In-App Payments.
 Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based
payments.
 Donations, Collections, Disbursements Scalable.
 Raising Complaint from Mobile App directly
FACETS OF E-BANKING
1. Customer to bank e-banking
2. Bank to bank e-banking
3. Electronic central banking
4. Intranet procurement
1. Customer to bank e-banking
E-banking is basically internet-based. Banking products and services such as deposits,
remittances, credit cards etc, as well as all important banking information’s can be made
available with easy access to customers on internet. Customers can make use of these
services with no restricted office hours, no queues, no waiting and no formalities of physical
visit. Several network innovations for e-banking can be visualized such as smart card,
electronic data interchange etc.
2. Bank to bank e-banking
This is for transacting inter-bank transactions such as money at call etc. this type of e-
banking is driving extranets which is restricted to banks only. Hence it is well secured and
unauthorized access is less.

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3. Electronic central banking
Central bank digital currencies (CBDCs) are the digital form of a government-issued
currency that isn't pegged to a physical commodity. They are issued by central banks, whose
role is to support financial services for a nation's government and its commercial-banking
system, set monetary policy, and issue currency.
4. Intranet procurement
The Procurement Intranet is a customizable intranet template that allows to store and
share important procurement-related information, such as supplier lists, sourcing, vendor
performance, purchasing policies, and procurement procedures. Extensive work is required to
integrate internal and external communication of banking related information through intranet
and internet banking for the development of the financial sector.
MEANING OF TRUNCATED CHEQUES:
Truncation means, stopping the flow of the physical cheques issued by a drawer to the
drawee branch. The physical instrument is truncated at some point enroute to the drawee
branch and an electronic image of the cheque is sent to the drawee branch along with the
relevant information like the MICR fields, date of presentation, presenting banks. etc.
It is the process in which cheque details are captured by the payee bank (or its
clearing agent) and electronically presented in an agreed format to the drawee bank (the bank
on which it was drawn) for payment. Unlike the more common form of presentment, where a
cheque is physically presented to the drawee bank, a truncated cheque is stored by the payee
bank.
EXPECTED BENEFITS
FOR BANKS
Banks can expect multiple benefits through the implementation of CTS like faster
clearing cycle means realization of the proceeds of cheques possible within the same day. It
offers better reconciliation/verification process, better customer service, and enhanced
customer window. Operational efficiency will provide a direct boost to bottom lines of banks
as clearing of local cheques is a high cost low revenue activity.
Besides, it reduces operational risk by securing the transmission route. Centralised
image archival system ensures data storage and retrieval is easy. Reduction of manual tasks
leads to reduction of errors. Customer satisfaction will be enhanced, due to the reduced turn
around time (TAT). Real-time tracking and visibility of the cheques, less fraudulent cases
with secured transfer of images to the RBI are other possible benefits that banks may derive
from this solution.
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FOR CUSTOMERS
CTS / ICS substantially reduces the time taken to clear the cheques as well enables
banks to offer better customer services and increases operational efficiency by cutting down
on overheads involved in the physical cheque clearing process. In addition, it also offers
better reconciliation and fraud prevention. CTS / ICS uses a cheque image, instead of the
physical cheque itself, for cheque clearance thus reducing the turn around time drastically.
E-cheques are cheques that are written and processed electronically. This means that the
funds are transferred from the payer’s account to the payee’s account through an electronic
network instead of a physical cheque. These cheques are also known as “digital cheques” or
“electronic cheques”.
Features of E-cheques
The features of E-cheque are as follows
 Faster: E-cheques are processed faster than traditional paper cheques. This is because
there is no need to wait for the cheque to be physically delivered to the payee.
 More Secure: E-cheques are more secure than traditional paper cheques because they
are processed through an electronic network. This means that there is less chance for
them to be lost or stolen.
 Easier to Track: E-cheques can be easily tracked through online banking systems.
This makes it easy to see where the funds are going and who they are being
transferred to.
 Reduces Paper Waste: E-cheques reduce paper waste because they do not require
the use of physical cheque stock. This means that fewer trees need to be chopped
down in order to produce paper cheques.
 Saves Time and Money: E-cheques save time and money because they eliminate the
need for manual processing. This means that there is less chance for human error and
that the funds will be transferred more quickly.
 Overall, e-cheques offer a number of benefits over traditional paper cheques. They are
faster, more secure, easier to track and reduce paper waste. They also save time and
money. If we are looking for a more efficient and secure way to process cheques, then
e-cheques may be the solution.
PROCESS OF E-CHEQUE
The process of writing and processing an e-cheque is similar to that of a traditional
cheque. The payer fills out a form with the necessary information, including the amount to be

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transferred, and submits it to the bank. The bank then verifies the funds and processes the
transaction.
This work makes it a safe, fast, and easy way to transfer money electronically. If you
are looking for a more efficient and secure way to process cheques, then e-cheques may be
the solution for you.
Components of E-cheques
 The components of e-cheques are the account number, the bank code, the cheque
number and the amount. The routing number is also included on paper cheques but
not on e-cheques.
 The first three digits of the account number are the bank’s transit routing number. The
next four digits are the account number within that bank. The last digit is a check
digit, which is used to confirm the accuracy of the other numbers.
 The bank code consists of two letters and six numbers and identifies which financial
institution issued the e-cheque.
 The cheque number is six digits long and increments with each new e-cheque.
 The only difference between writing a regular cheque and writing an e-cheque is that
with an e-cheque, you don’t need to write “Pay to the order of” followed by the name
of the person or company to which you’re sending payment. The name of the payee is
automatically included in the e-cheque information.
ADVANTAGES OF E-CHEQUE
 Provide protection:- it provides more protection to customers than the paper cheque .
 More convenient:-there is no need for carrying cheque book or cheque leaf to the
bank for transacting business.
 Less costly:-the cost of producing e-cheque is practically nil. the handling cost is also
very low
 Avoids loss in transit , bad delivery,etc:-such problems do not arise in e-cheque
 Any time cheque:-it is anytime cheque as it can be drawn any time during the day
 No delay cheque:-e-cheque can be credited to the payee’s banker’s account with the
help of cheque truncation system
 e-cheque facilitates e-banking
MODELS OF E-BANKING
Complete centralized solutions
Under this model centralized banking system allows the banks to perform various
functions like account opening, deposits, withdrawals, fund transfers, loan processing, and
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other banking services and allows customers to access their accounts and carry out banking
transactions irrespective of the location of their home branch. For these the bank has to
provide web server and the requisite software which is connected to the main server. Once
the required hardware and software are set, the customers can access the web server for their
banking operations using browser at any location.
Cluster approach
Under this model, computerized branches of each city are connected with regional
processor located at each city which are then connected through reliable media to a
centralized high end server. Under this approach, computer facility is needed to all branches
through regional clusters.
High-tech Bank within bank
Hi-tech banks are new generation banks. These banks not only accept deposits and
lend money but also provide variety of other services to its customers, they provide the hi-
tech banking services through internet services, are provision of ATMs, mobile banking,
internet banking, anytime banking, EFTs, credit cards merchant banking etc. This approach
enables the banks to play a balanced role to offer state of the art service to ever demanding
customers of major cities and simultaneously continue to offer traditional personalized
services to the mass customers who still dominate the banking scene.
Benefits of e-banking:
Benefits of e-Banking to customers
 e-banking covers digital payments, which have transparency.
 It usually supports 24×7 access to banking services. So customers can avail services
as per their time.
 It is a very convenient and easy to use service for customers as they do not have to
visit the bank branches every time.
 It provides the best features, such as notification services which inform customers of
anything and everything happening with their banking services.
 Financial discipline is inculcated as each and every transaction is recorded.
Benefits of e-Banking to banks
 It reduces banks’ transaction costs. Operation cost per unit service decreases.
 It is completely electronically managed, which reduces the chance of mistakes in the
transaction.

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  Banks can easily attract customers for various offers via phone calls, emails and apps,
as the customer doesn’t have to visit the branches anymore for any product specific
information.
 Banks have to hire less people and also it will reduce the branch size and area, which
helps in overall revenue growth.
 It provides a competitive advantage to the banks.
 With the help of e-banking, banks have a wider coverage area as banks are now not
limited to the number of branches.
 Loads of branches are reduced as a centralized database is present.
CONSTRAINTS OF E-BANKING
 Setting up an account in the bank may take time though the E-Banking facility is
provided by the banks.
 Internet account of customer with an Internet Service Provider (ISP) which may be
another hectic experience.
 Banking sites can be difficult to navigate at first by the customers who do not have
knowledge of computer and internet so getting acquitted with the banking sites
software may require some time to read the tutorials in order to become comfortable
in persons virtual lobby. There may be some difficulties to the customer for learning
these activities of E-Banking.
 Some alterations or changes made in the banks sites due to technological
advancement may lead to a problem to customers who have to provide all the personal
information once again through online transaction.
 E-Banking is time consuming for the customers, though there is option of online
transactions, in the end customers have to run to the ATM for withdrawing the cash.
 No personal contact with any of the bank staff, and if talk to any bank staff through
the telephone, there is no guarantee to the customers that they had talked with a right
person or not.
 “Hackers” who may access customer’s bank account is the main disadvantage to the
customers who takes E-Banking facility very casually.
 Security concern is the important issue as cybercrimes activities are clutching up
which decreases the number of customers to avail the benefit of e- banking.
 technical breakdowns where online banking websites sometimes go down. If this
happens then, if customer wishes to close his bank account then he will definitely go
penniless.
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  Switching banks due to technical faults can be a major disadvantage of using E-
Banking system to the customer.
 Increasing online frauds and attacks i.e. Trojan horse (Remote Attacker) are a major
disadvantage of using E-Banking.
 However, in the case of Internet banking, one will find oneself making endless calls
to the customer service department. There have been cases, where the person is put on
hold or has been passed around from one person to another.
 Hackers and crackers attack on the bank account of customer by stealing passwords
or using fake credit cards to cheat a person which will cause loss to the customer’s
wealth.
WHAT IS A VIRTUAL CURRENCY?
A virtual currency is a digital representation of value only available electronically. It
is stored and transacted through designated software, mobile, or computer applications.
Transactions involving virtual currencies occur through secure, dedicated networks or the
internet. They are issued by private parties or groups of developers and are mostly
unregulated.
Virtual currencies are a subset of digital currencies, such as cryptocurrencies and
tokens, issued by private organizations. Virtual currencies can allow for faster transaction
speeds, ease of use, and broad access. However, virtual currencies can be hacked through
software used to access them and are not regulated, so there is generally no legal recourse for
users if they are victims of an attack.
RTGS full form is “Real-Time Gross Settlement,” and it is a specialized electronic funds
transfer system used by banks and financial institutions for high-value and time-sensitive
transactions. In an RTGS system, funds are transferred from one bank to another in real-time,
meaning the transaction is processed immediately, typically within seconds or minutes. The
term “gross” in RTGS signifies that each transaction is settled individually and in full,
without netting or offsetting against other transactions. This ensures that the funds are
transferred securely and without any dependence on other transactions, minimizing
counterparty risk. Real-time gross settlement systems are often operated and overseen by
central banks or financial authorities to ensure the stability and integrity of the financial
system.
Features and Benefits of RTGS
 Safety and Security: RTGS, with its RTGS meaning (Real-Time Gross Settlement)
in banking, is a highly secure method of transferring funds. The electronic nature of
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 the transaction significantly reduces the risk of loss, theft, or fraudulent activity
compared to physical instruments like checks or demand drafts.
 No Maximum limit: Real-time gross settlement transactions made through the bank
branch typically do not have a maximum limit, making it suitable for transferring both
small and large sums of money within the real-time gross settlement framework.
 Real-time transfer: RTGS, being a key component of real-time gross settlement in
banking, offers real-time fund transfers. This ensures that the recipient’s account is
credited immediately upon initiation of the transaction, adding to its efficiency.
 Seven days a week: RTGS operates on all days, including weekends and holidays, as
part of its real-time gross settlement functionality, providing uninterrupted access for
users to transfer funds when needed, enhancing convenience and accessibility.
 No physical instruments: Real-time gross settlement eliminates the need for physical
instruments like cheques or demand drafts, as it is entirely electronic. This not only
streamlines the process but also reduces the risk associated with physical
documentation.
 Reduced risk: The absence of physical instruments in RTGS significantly reduces the
risk of these instruments being lost, stolen, or fraudulently encashed by unauthorized
individuals or parties, reinforcing its security.
 Convenience of internet banking: RTGS transactions, within the real-time gross
settlement system, can be initiated conveniently from the user’s home or workplace
through internet banking. This added convenience offers flexibility and ease of use in
electronic fund transfers.
 No fees or charges: While some banks may charge nominal fees for Real-time gross
settlement transactions, many banks offer this service free of charge, making it a cost-
effective method for transferring funds within the real-time gross settlement
framework.
 Legal backing: RTGS transactions, being legally recognized and regulated as part of
the real-time gross settlement system, provide users with a sense of security and
assurance that their financial transactions are protected by the law, further enhancing
trust in the process.
MOBILE BANKING
Mobile Banking refers to banking via mobile phones. Most banks today offer mobile
banking services, enabling you to perform various basic tasks that usually require lining up at
the bank. The most prominent advantages of mobile banking are that it saves you time and
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allows you to bank remotely, 24x7, from any corner of the world. It also enables you to
conduct fund transfers and check account balances and statements using your mobile phone.
Mobile Banking Advantages
Time Saving
Mobile Banking offers quick and instant banking services, eliminating dependence on
banks for basic transactions. Do we want to check the account balance, the details of our
recent transactions or simply transfer funds in a jiffy? Just load your bank’s mobile banking
app on your phone, and you are good to go.
Remote Banking
When we travelling to a different city or perhaps going abroad? No matter where we
are, all need is a stable internet connection and a robust mobile and internet network. We can
conduct various kinds of transactions form from anywhere across the globe.
Monitoring Transactions
Another mobile banking advantage is that we can track all our financial transactions.
We can monitor our bank accounts and conveniently dispute fraudulent transactions simply
by logging in to our mobile banking app.
Easy Access
Whether if we want to transfer funds, check account balances and statements, or apply
for loans – we can do it all with mobile banking. We can order cheque books and apply for
credit and debit cards, open fixed and recurring deposits, and more using our mobile banking.
Round-the-clock availability
Mobile banking is like carrying our bank in your pockets 24 hours a day, 7 days. We
can initiate fund transfers at any hours, reach out to customer care helplines and get banking
information within minutes through the mobile banking app.
Value-Added Services
Mobile banking apps also enable utility bill payments, mobile phone recharges,
insurance policy purchases, etc. We can open investment securities accounts, pay taxes,
purchase FASTags, open pension accounts, and more.
Mobile Banking Disadvantages
Internet reliant
A major disadvantage of mobile banking is that it functions only if you have an
internet-enabled smartphone. You can also enjoy the services on regular mobile phones, but
they are not as extensive as those you can get through mobile apps.

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Tech Knowledge
We need to be well-versed with the constantly evolving banking technologies to enjoy
mobile banking advantages. This can prove to be quite a challenge for older people or people
from rural areas.
Internet Phishing
Unsafe internet and mobile banking practices can lead to internet phishing scams.
You risk exposing your account details if you store your passwords and other sensitive
banking information on your phone. Avoid opening scam emails or sharing passwords to
enjoy mobile banking services securely.
Final Note
As is apparent, there are several advantages and disadvantages of mobile banking.
While the benefits outweigh the consequences, you should take both into account and ensure
you practice the proper mobile banking etiquette.
Modus Operandi
Fraudsters create a third-party phishing website which looks like an existing genuine
website, such as - a bank’s website or an e-commerce website or a search engine, etc.
Links to these websites are circulated by fraudsters through Short Message Service
(SMS) / social media / email / Instant Messenger, etc.
Many customers click on the link without checking the detailed Uniform Resource
Locator (URL) and enter secure credentials such as Personal Identification Number (PIN),
One Time Password (OTP), Password, etc., which are captured and used by the fraudsters.
INTER-BANK MOBILE PAYMENT SERVICES
IMPS is a platform provided by National Payments Corporation of India (NPCI). IMPS
allows existing unit holders to use mobile technology/instruments as a channel for accessing
their bank accounts and initiating interbank fund transaction in a convenient and secure
manner.
How does IMPS Works
 Unit holder needs to register himself/herself for Mobile Banking with his/her Bank
 The bank issues a unique MMID (Mobile Money Identifier) which is a combination
of his / her bank account and bank code and also issues an M-PIN, a secret password.
 Unit holder can now perform transaction using mobile banking application or SMS /
USSD facility as provided by his/her Bank. For example: If unitholder wants to invest
Rs. 5000 in ABSL Cash Manager using the mobile application, he/she needs to follow
the following steps - In the mobile application; provide the
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 o MMID of the scheme i.e. Cash Manager (ABSLMF currently provides it for
15 schemes)
o His / Her Aditya Birla Sun life Mutual Fund Folio No. (in lieu of the
beneficiary mobile number no in the mobile application)
o MMID of the Scheme (ABSLMF currently provides MMID for 15 schemes)
 Amount to Invest/transfer
 MPIN issued by the bank remitting bank validates the details and debits the account
of the Unit holder. It passes on the information to the beneficiary party (ABSLMF)
via NPCI.
 ABSLMF/AMC shall, after validating the details, credit the folio/scheme account
with the appropriate units and shall also provide an SMS/email confirmation to the
Unit holder informing of the allotment

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