SIM-based tech aids banking on basic phones

Prakasham has been in talks with companies to take his project forward and bring the SIM-card driven system to life.

The initiative assumes significance in the backdrop of the cash crunch that has now affected the nation, following the demonetisation last Tuesday. Speaking about his service, Prakasham tells us, “Anyone with an ordinary mobile phone can use this service to make payments to another user even without using the internet facility. The stakeholders in this system are the government, the RBI, the mobile service providers and users. At present, mobile service providers have various chargeable items classified as voice calls, SMS, STD, ISD, Roaming, Value Added Services etc. My prototype includes an item called Small Payments Adjustments, which can be used to pay for services.” 

Prakasham’s system is based on the premise that mobile service providers could also function as financial institutions (if allowed by the RBI) and that each user can be provided with a certain account balance to start with, which will be registered on the SIM card itself. Users can transfer a part of this value to other SIM cards within a given period, which could be used for making small value payments.” 

He says, “This will form part of the total billing by the service provider. As this facility is designed for small amounts, it will provide a convenient way to exchange money without movement of cash. It is not dependent on the internet, so services can be easily extended to rural regions where there is limited net connectivity. This could turn out to be a real value added service to users, who do not even need a smartphone to carry out transactions of small amounts.”