The Reserve Bank of India allowed one hundred and forty five banks to give mobile banking service and they can provide instant loan as a provider of the mobile wallet.With an increase in the number of smartphone users and the growth of the mobile banking is encouraging the service providers to facilitate an added service. The companies like One MobiKwik, Payworld and Paytm are planning to offer instant loans in addition to the existing e-debit card service.According to the recent research, the mobile transaction has a rapid growth with around 39.49 million settlements which values around forty nine thousand crore, and people are welcoming the idea of using their smartphone for the transaction. The experts are expecting one thousand two hundred crore transaction in the near future because of the increasing number of users.
Bipin Preet Singh, founder of One MobiKwik Systems said in an interview that they are planning to launch the micro credit programme in the beginning of May; the trials are over and they are waiting for the official approval. He said that in the testing phase, they provided small loans for hundred to five hundred rupees, and after the official approval, they will offer five thousand rupees as an instant loan amount for the eligible users.The mobile wallet companies partner with the non-banking finance companies and commercial banks to analyze the users who have got the instant loan. The Paytm is going to open a payments bank, and the users who have an account in their banks can only avail the instant mobile loans. The date for repayment of the loan amount and the interest rate will depend on the user’s transaction history.In case of security, a user cannot access another user’s e-wallet even if he has the username and password. Once when they find a duplicate or fraud account, that user is blocked from the system, and he can no longer create a new account.