For the success of mobile banking facility, there is a need to spread awareness and educate customers about its benefits, industry experts said.

"Mobile phones have become an essential communication tool for almost every individual. Yet, m-banking has not been widely accepted as a financial transaction channel due to lack of awareness about the system," ICICI Bank Head (Mobile Banking) Rahul Joshi said at a discussion organised by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) here today.

M-banking creates new, convenient communication and fast financial transactional channel for mobile users, which is accessible anywhere, anytime, he said.

"The major challenge for banks and telecom operators providing these services is unawareness among the customers about the benefits of the system. It is necessary to reach out to the masses and educate them about its benefits.

We will also have to address the challenges of security of financial transaction," Joshi said.

However, the scenario is likely to change in the next two years, National Payments Corporation of India Chief Executive Officer A P Hota said.

"The Unique Identification Authority of India (UIDAI) is working on an aggressive plan to issue unique IDs to mobilise m-banking. This initiative will act as a catalyst in encouraging customers to adopt m-banking. The facility will also play a major role in achieving financial inclusion," Hota said.