In a bid to boost digital financial inclusion, Telecom Regulatory Authority of India (Trai) has scrapped tariffs for unstructured supplementary service data (USSD)-based mobile banking and payment services. The mobile operators were charging 0.50 paisa per session from 2G customers for availing such services.
However, the scrapping of charges will not have any major financial impact on mobile operators as only a miniscule number of 2G customers of Bharti Airtel and Vodafone Idea use USSD-based services. Reliance Jio, being a 4G-only player doesn’t have such customers.
Trai had earlier issued a tariff order in 2013 prescribing a ceiling tariff of Rs 1.50 per USSD session for USSD-based mobile banking service. Subsequently, the authority through an amendment in 2016, reduced USSD-based tariff for banking and payment services ceiling from Rs 1.50 to Rs 0.50 paisa per session.
To review the existing regulatory framework, Trai issued a draft order on November 24, 2021 proposing ‘nil’ charge for USSD sessions for mobile banking and payment services. “After analysing the comments received from stakeholders and other data/ information available with it, the authority is of the view that, to protect the interests of the USSD users and to promote digital financial inclusion, rationalisation of USSD charges is required. In view of the same, the authority has decided that the subscribers will not be charged for USSD for mobile banking and payment service,” Trai said in its tariff order.
The authority will continue to keep a watch on the progress of service and may review the charge after a period of two years.
