In India , the concept of Narrow Banking comes into discussion after submitting the report by TARAPOR committee. It was suggested as a solution to the problem of high NPA (Non-Performing Assets )and related matters. The committee proposed that incremental resources of these narrow banks should be restricted only to investment in government securities [G-sec].
RBI (Reserve Bank Of India) gives privileges for mobile banking facilities only for those banks which are physically present in India.
SOME IMPORTANT POINT ABOUT MOBILE BANKING
-- NO International transaction.
-- Through Mobile Banking Only Rs 5000 /- can be transferred in one day.
-- If you are Purchasing something then the above fund becomes Rs 1000 /- in a day.
-- If any bank creates his own rules or schemes (Mobile Banking) then it will be at his own risk, RBI not include in this.
-- " THE ACCOUNT THAT TRAVELS WITH YOU " is Mobile Banking
Due R.K. Khan's Recommendation, Universal Banking was introduced.
When a bank do some Developing Activities except Banking Activities then it is said to be a Universal Banking.
Example : IIBI IFCI etc
When a bank takes part in small acitvities like ( Challan, Bills, Gold Coin Selling, Fund, Insurance etc) Then it is called Para Banking.
When one kind of branches of a bank are interconnected each other then it known as Core Banking.
Example : SBI etc.