This is nothing new now. Yet, not many know that mobile money transfer is a facility that offers you perfect alternative for banks and ATMs. Using this facility, you can get rid of tensions regarding visiting such places for getting money to make urgent payments or transfers of money. So, RBI itself has worked out on various features of this system, including picking general stores, fair price and medical shops etc. as correspondents.
So, what does it offer you? Well, to begin with, there is a complete freedom of money transfer to anyone. This means that you may be in your local market, making the transfers and the cost of this transaction would be very less as compared to via banks. Furthermore, you save time, paper and energy by using this system. It also adds to the security of money transfer. So there is no need of visiting banks every time you want to send some money to someone. It is very easy now.
However, this is not the complete story of this system. There are major problems revolving around this system that needs to be removed quickly. Undoubtedly, the related people are working to eradicate these shortcomings, but it would take some time. So far, the disadvantages of using this system are:
Fake subscribers are a big trouble here. Not only this but because of ever-creasing mobile companies, it is quite difficult to inter-operate. This would need the usage of unique identity number. Since the banks are offered very low percentage of commission, normally the minimum monthly amount that you can transfer has to be 3-4000 INR. Transferring such amount is not possible for every person.
Still, there is no denying this fact that this system is under development and soon such restrictions and short-comings will be lifted too. This will make it a system for everyone.