Mobile banking in Nepal

KATHMANDU, Jan 26: An advertisement on Laxmi Bank’s website reads: “Customers can now literally carry their (bank) accounts in their pockets.” If it sounds too good to be true, then it isn’t, as this is the privilege you get for subscribing to mobile banking service.

Currently several banks in the country have introduced this service with the aim of making money transfer and payment of bills easier.[break]

Once you subscribe to this service all you have to do is send an SMS mentioning the amount and the account number of the recipient and the cash is transferred instantly.

Laxmi Bank, for instance, has introduced a service called Mobile Money using which you can pay the bills at shopping outlets and restaurants without taking out your wallet.

But there is a caveat: these services are available only at over 300 partner outlets of the bank located in Kathmandu valley, Butwal, Biratnagar, Damak, Dharan, Itahari and Sunsari.

So if you go to Bhat-bhateni Supermarket in Kathmandu or Durga Gift House in Sunsari you can just take out your mobile and send an SMS to pay the bills.

Similar services are also being offered by Nepal Investment Bank, Everest Bank and Kumari Bank, among others, but many are restricted to paying mobile phone bills or purchase of services from internet service providers.

The beauty of mobile banking service, according to Laxmi Bank, is that SMS fund transfer takes place on real time, meaning, the moment your text message reaches the destination, transaction takes place. And don’t worry if you send the SMS multiple times by mistake.

The bank’s system does not heed any repeat instructions for 24-hour period, meaning the amount will not be deducted multiple times from your account.

The kind of mobile payment services that is currently being used in Nepal looks nascent in front of Singapore’s plan to let its people to pay grocery bills or purchase train tickets by only tapping their mobile phones in front of sensors. Yet many say this is only the beginning.

Who knows, in the days to come banks may link bank customers’ mobile phone numbers to their accounts so that they can transfer money to anyone by sending text message or using an application rather than inserting their full account details – a service which is soon being introduced in the UK.

Tips for safe mobile banking transaction

If you have subscribed to mobile banking service, it is essential you adopt various measures to protect your bank account from security threats. Here are five mobile security tips:

Verify authenticity of bank’s software

Before installing the bank’s software on mobile phone, it is essential to ensure that the software is authentic. It is advised you contact the bank before installing any applications on devices.

Manage passwords

Ensure that your mobile phone is protected with a password, and that the maximum number of incorrect password submissions is set to no more than three. This security mechanism allows you to protect data in case you lose your phone.

Protect your personal information

Along with passwords, it is essential that you do not reveal or write down PIN numbers anywhere. You should not retain any email from your bank with regard to your password or other personal details. In addition, do not give your password, PIN or identification information over the phone or Internet.

Review account statements

While using mobile banking service, it is advised you review your account statements frequently. You should be sure there are no transactions that you did not make or authorize. If you do notice any unusual transaction, call your bank immediately.

Report lost phones immediately

If you lose your phone or if it is stolen, you should call your bank and ask them to deactivate the mobile banking service. This step will prevent anyone who finds your phone from accessing your bank account or making transaction on your behalf.

Source: Mobile Commerce Daily