BANGALORE: Good news for those carrying basic handsets, as you can now transfer your money matters through your phone and no need of Smartphones for this! Arun Jaitley the new finance minister has announced the launch of new mobile banking services for those people who are not using Smartphones, reports Business Standard. Thus, soon you can stop using your Smartphones or internet services for mobile banking and can start using a basic handset to transfer money from your account number to another.

This new move by the finance minister is to ensure more inclusion of money in India and cut down the service charges charged by banks to their clients. This new mobile banking service will reduce the transaction cost for those bank customers who don’t have a smartphone and are forced to go to the bank for every transaction and money transfers. When compared to 200 charged by a bank for each transaction, this new service will only cost a customer Rs 1.50, which will be deducted from his airtime. This will hardly entail any cost for the bank. Thus this service is lot more cheaper when compared to the actual cost charged by any bank.

"The transaction cost will reduce over a period of time. It is estimated that over 500,000 transactions will take place in the first year of the launch. The service will also allow balance enquiry and account-to-account transfer at merchant outlets," said a finance ministry official who did not wish to be named. It seems that for providing this new mobile banking service on basic handsets the National Payments Corporation of India is signing contracts with telecom companies on behalf of banks, including private-sector lenders. Thus NPCI and telecom companies will share the revenue generated from this service.