USSD Banking: Working and Uses

Economically weaker sections of society and people who have limited access to mainstream financial services can now benefit from USSD Service. (Unstructured Supplementary Service Data) USSD offers mobile banking services without the need for an internet connection. It serves as a communication protocol between mobile phones and service provider’s computers. It is also called *99# service and is currently offered by 51 leading banks & all GSM service providers. This service can be accessed in 12 different languages including Hindi & English as of 30.11.2016 (Source: NPCI). In this blog, we will learn about how USSD works, its uses and how to transact using this service. So let’s start.

USSD Working

USSD makes use of GSM(Global System for Mobile Communications) Networking. The number used for mobile banking is *99# which initiates an interactive menu. When a user dials this code, a request is sent to the mobile network operator’s computer systems. After processing the request, a response is sent to the user’s phone. Now, a 2-way exchange of information happens, keeping the communication channel open. This real-time interaction allows for managing services like balance inquiries and mobile payments.

Now, let us understand the use of USSD Service.

Benefits of Using USSD

1. Account Balance Check

By using this service, you can have your remaining call credit displayed along with data balance and validity.

2. Phone Recharge

By using USSD Code, you can top up your prepaid account with a voucher or online recharge.

3. Management of Data Packs

Use USSD menus to activate new data plans, check data usage, or even change your data pack.

4. Access to Customer Care

You can contact your service provider’s customer assistance by entering a specific USSD code.

5. Mobile Banking

Verify account balance, execute fund transfers, or settle debts with USSD banking services (provided your bank grants you this availability).

6. Updates on Stock Market

Get information about stock market fluctuations using USSD services offered by select brokers.

7. Access to News & Information

Get information about stock market fluctuations using USSD services offered by select brokers.

Steps to Send Money Using USSD *99# Using MMID & Mobile Number

Step 1 – Register bank account with mobile number and dial *99#

Step 2 – Into the interface, enter 3 letters of your bank’s short name or the first 4 letters of bank’s IFSC or 2-digit bank numeric code and click ‘Send’.

Step 3 – Select ‘3’ to send money and enter the payee or beneficiary’s mobile number.

Step 4 – Enter the transaction amount and beneficiary/payee MMID.

Step 5 – Enter your MPIN and bank account number’s last four digits.

Steps to Send Money Using USSD *99# Using IFSC Code & Bank Account Number

Step 1 – From your registered mobile number, enter *99#.

Step 2 – Enter the first four letters of your bank’s IFSC, your bank’s short name, or your two-digit bank numeric code.

Step 3 – Select the option to send money using your cellphone number and IFSC code.

Step 4 – Enter the transaction amount, IFSC code, and beneficiary/payee account number.

Step 5 – Enter your bank account number’s last four digits and your MPIN. There will be a confirmation message on the screen.

Conclusion

USSD clearly bridges the gap between traditional banking and underserved populations with its multilingual application. Its non-dependency on the internet makes it widely accepted. Services like balance inquiries, fund transfers, and mobile recharge are its main offerings. It is easy to use, and offers real-time interaction and broad accessibility. Choose convenience with USSD Banking.