Phone Banking (Telephone Banking)

Telephone banking is a service provided by a bank or other financial institution, that enables customers to perform over the telephone a range of financial transactions which do not involve cash or Financial instruments (such as cheques), without the need to visit a bank branch or ATM. One of the most convenient banking services provided by the majority of the banks and financial institutions. It has made life easy as account holders can initiate transactions as well as complete some of the transactions. Customers can enjoy the flexibility of time with 24-hour phone banking service. The account holder can enquire about account balance, make bill payments, transfer funds to another account and do much more with this facility. To use this facility, customer may not require internet facility, instead just having calling facility in the phone is enough.

How to get Phone Banking facility?

It is important to register the mobile number with the bank to use the phone banking service. Once registered, customer will be given a Customer Number for phone banking. He/she will be given the password or will be required to set the desired password.

Registration/password generation through Contact Centre.

• The customer can call the toll free number of the bank and choose the desired option in IVR. 
• The customer will be asked to give important details such as ATM card number, PIN, mobile number, account number etc. 
• A 6-digit password is sent on the registered number after completing the registration.

Registration/password generation through ATM

• Account holder can also visit the nearest ATM of the bank to get the phone banking registration done. 
• He/she will be required to just swipe the ATM card, enter the ATM PIN and select the “Phone Banking Registration” option on the screen. 
• Enter the registered mobile number to get the 6-digit password.

Registration through Branch     

• The customer can visit the bank branch and submit the phone banking application to avail the service. 
• A pre-printed kit will be provided by the bank, which will contain the 6-digit phone-banking password.

Phone Banking Services

Generally phone banking facility provides a variety of services. Those facilities are

• Get all the information related to the account such as account balance, or any transaction details, and even the account statement of the last six months on the mail.
• Request for cheque book online
• Stop payment of any cheque (Single and multiple)
• Initiate fund transfers to self-account as well to third-party account (with some limitations)
• Open a Fixed Deposit/Recurring Deposit
• Check Account Balance
• Enquire about loans
• Generate ATM PIN
• Access Credit Card details
• Get the interest certificate of home loan or education loan.
• Get the Deposit Interest Certificate
• Know TDS deductions and other information
• Update mobile information or mail ID

Advantages of Phone Banking

• The cost of managing the transactions is reduced as the number of visits to a bank by an account holder is reduced.
• The account holder does not need to visit the branch for non-cash withdrawals frequently.
• Flexibility to do any transaction from anywhere.
• It is most convenient for the users located in rural areas where the bank branch is far or not easily accessible. 
• It is secured as well as a risk-free mode of banking.
• It can be used to make the utility bill payments, block the ATM card, fund transfer, open fixed deposit/recurring deposit etc.
• It is not essential to have a smartphone to use phone banking services, unlike mobile banking.
• Lost demand due to Internet Banking.