Government32 banks have been given approval to provide mobile banking facility in the 
country by the Reserve Bank of India. 21 banks have started providing these services. Mobile banking is a secure application, which takes care of end-to-end encryption of data in transit to offer banking information and transactions. Customer is forced to change the activation code and mPIN sent to him at the time of registration. He is also driven to decide a password to log-in to the application. Customer also has a choice to change the mPIN, log-in password at any point of time.
Banks are now permitted to offer this service to their customers subject to a daily cap of Rs.50,000/- per customer for both funds transfer and transactions involving purchase of goods/ services. Transactions up to Rs.1,000/- can be facilitated by banks without end-to-end encryption. The risk aspects involved in such transactions are addressed by the banks through adequate security measures.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Rajya Sabha
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In India Mobile Banking denotes banking activities done through mobile phones. The term mobile banking also denotes banks go to customers where they reside or work, i.e, banks move from one place to another, from one customer to another customer rather than being stipulated under a roof. This is very useful to customers of remote villages, customers who reside in islands and water surrounded areas especially places like Kuttanad of Allepey district and other parts of India. Its being successfully operated in Island nations like Maldives and the like.