TRAI’s push to make mobile banking services via USSD free faces stiff opposition from Airtel, Vodafone Idea
- India’s telecom regulator wants to make mobile banking services via
- It is however facing opposition from two of India’s leading telecom players,
Airteland Vodafone Idea.
- While Airtel wants to be compensated if the charges are reduced to zero, Vodafone Idea stated that the costs would be substantial.
AdvertisementAirtel and Vodafone Idea, India’s two leading telecom players, do not want feature phone users to use mobile banking services via USSD for free.
The telcos reportedly revealed this in response to a proposal by the Telecom Regulatory Authority of India (
USSD is short form for unstructured supplementary service data. Mobile banking services through USSD can be accessed using the *99# short code.
Users can retrieve their mobile balance, mini statement, generate one-time passwords for banking services, and transfer funds via this service.
Announcing its proposal, TRAI said, “The Authority proposes to revise the framework for USSD-based mobile banking and payment services by prescribing a “nil” charge per session as rationalisation is a necessity to protect interests of target user groups and promote digital financial inclusion.”
In response to this, Airtel said it should be suitably compensated by the concerned stakeholders – likely the government and banks – if the charges are reduced to zero, according to a report by ET Telecom.
Vodafone Idea was quoted as saying that the “costs per unit would be substantial” if the volumes of
Business Insider India has reached out to both Airtel and Vodafone Idea for further comments. We will update the story if and when we receive a response.
What is USSD and why is it important for Indian users?
USSD is a feature that allows users without smartphones to access services like peer-to-peer payments, checking bank account balances and other banking services, without the need for a smartphone or mobile internet services.
AdvertisementEssentially, access to banking services via USSD benefits feature phone users the most – there are over 350 million feature phone users in India, according to an IDC report.
Apart from this, the Reserve Bank of India announced last week that it will soon expand the availability of the ubiquitous
Tega Industries meets its GMP of ₹300 and lists at 66% premium
Tega Industries, Vedanta, SpiceJet and other top stocks to watch out for on December 13
It’s the last day to subscribe to MapmyIndia’s IPO, which is oversubscribed by six times
Popular on BI
- How OnlyFans star Riley Reid plans to 'immortalize' herself using AI
- A leading supplement researcher says she doesn't take any — because she's getting what she needs from her vegan diet
- Mattel rolled out a Barbie to honor a late Cherokee Nation chief with a language error on the box that says 'chicken' instead of 'Cherokee'
- 10 dry fruits to include in your daily winter diet
- Paytm to focus on big ticket loans to low-risk credit-worthy customers
- 10 Cities in India perfect for a chill and relaxed life
- India’s economic rise: How global tech giants are chasing the next big growth engine
- Lamborghini Revuelto: Plug-in hybrid supercar with V12 engine hits Indian roads