Bank without Internet -*99# USSD

Introduction
Unstructured Supplementary Service Data (USSD) (*99#) is a mobile banking service that allows customers to access the financial and non-financial services of the banks.

Agencies Concerned

1. National Payments Corporation of India (NPCI) is the nodal agency of USSD
2. USSD establishes a network between Banks and Telecom Service Providers (TSP)

About USSD

• USSD technology is a GSM standard for transmitting information providing session-based communication in the banking services
• Customer has to register their mobile number with their bank 
• Customer access financial services by dialling *99# from their mobiles registered with their bank accounts
• USSD works exclusively on all GSM handsets
• USSD links the benefits of the telecommunication network to make financial and banking transactions easier.

USSD Features

• No internet is required for its operations
• Uses voice based connectivity
• Very simple to use
• Available to all GSM mobile users through a common code ‘*99#’ across all TSPs
• No roaming charges charged in addition to the ordinary service
• Works round the clock on all days including holidays
• USSD will act as a key financial inclusion measure of GOI
• Customer need not install any new apps to avail this service

USSD Services

USSD offers three main types of services to customers including

1. Financial
2. Non-Financial and 
3. Value added services

Financial Services

Financial services include fund transfers in the means of 

1. P2P – Person to Person
2. P2A – Person to Account
3. P2U – Person to UID

Non-Financial Services

1. Mini Statement
2. Balance Enquiry
3. Know MMID
4. Generate OTP
5. MPIN

What is MMID?

MMID is the 7 digit code given by the bank to the user while registering for mobile banking
Value-added Services
Aadhar based money transaction (*99*99#)

How to use USSD?

• Customer has to dial *99# from their mobile
• Welcome screen appears
• Customer has to enter their bank IFSC first 4 letters or short name of Bank in 3 letters
• Various options pop up for the user
• The user has to select the appropriate option and complete their transaction
• For fund transactions or transfers using MMID and mobile number, both the sender and the receiver must have registered their mobile numbers in their banks
• However, the receiver need not have to register their mobile numbers in their banks for receiving money using Aadhar number or account number from the sender.

Limitations

• USSD is charged by TSPs from the customers 
• A maximum rate of Rs. 1.50 per transaction is set by TRAI
• This charge will form a major hindrance for common man to switch to USSD
• RBI has initially set a restriction of transacting only 5000 rupees per transaction
• NPCI must make this USSD totally free of cost to achieve the cashless economy as promised by Prime Minister Mr Modi.

Conclusion

• USSD is a major initiative of NPCI to move towards a cashless economy like the USA
• USSD enhances financial inclusion to a great extent
• It helps India to move to digital revolution helping in ‘Digital India’ mission
• Moving to a cashless economy will help curb black money, corruption etc
• USSD is a positive step forward towards making India, a developed nation