Telecom regulator Trai today floated a consultation paper on making mobile banking easily accessible and more secure for users.

The consultation paper by Trai has sought comments from the operators on how to make basic financial services easily available through mobile phones.

Trai has sought views on methods of communication on mobile network (GSM and CDMA) that would be suitable for enabling financial transactions through mobile phones and parameters to be defined to ensure timely delivery of information.

Further, the security requirement using the method proposed by service providers is for five basic transactions -- no-frills account opening, cash in, cash out, checking balance and money transfer.

The National Sample Survey data reveals that 51.4 per cent of nearly 89.3 million farmer households do not have access to any credit either from institutional or non institutional sources.

A large percentage of rural population does not have a deposit account which means that they do not have access to even basic financial services.

Around 209 million rural mobile subscribers far outstrip bank account holders in rural areas. Access to basic financial service continues to be an unrealised dream for millions of our citizens.

"With an aim to utilise fast growth of mobile telephony in rural and remote areas and mobile banking is seen as integral part of banking services," Trai said.

The exponential growth of telephone services as well as improved technology has opened the door for the mobile phone to be used as an instrument for banking operations.

Service providers are requested to send their comments by November 23, Trai added.