USSD Banking: Working and Uses

Introduction

Economically weaker sections of society and people who have limited access to mainstream financial services can benefit from USSD service. USSD, or Unstructured Supplementary Service Data, offers mobile banking services without the need for an internet connection.

It works as a communication protocol between mobile phones and the service provider’s computers. It is also called the *99# service and is offered by leading banks and GSM service providers.

In this blog, we explain how USSD banking works, its uses, and how to make transactions using this service.

USSD Working

USSD makes use of GSM, or 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.

A two-way exchange of information then continues while keeping the communication channel open. This real-time interaction allows users to manage services like balance inquiries and mobile payments.

Benefits of Using USSD

1. Account Balance Check

By using this service, you can check your remaining account-related balance and other available information through the menu.

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 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

You can verify account balance, execute fund transfers, or settle payments with USSD banking services, provided your bank offers this facility.

6. Updates on Stock Market

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

7. Access to News and Information

USSD services can also be used to access information-based menu services, depending on the provider.

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

1. Register your bank account with your mobile number and dial *99#
2. Enter 3 letters of your bank’s short name, the first 4 letters of the bank’s IFSC, or the 2-digit bank numeric code and submit
3. Select the option to send money and enter the beneficiary’s mobile number
4. Enter the transaction amount and beneficiary MMID
5. Enter your MPIN and the last four digits of your bank account number

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

1. From your registered mobile number, dial *99#
2. Enter the first four letters of your bank’s IFSC, your bank’s short name, or the 2-digit bank numeric code
3. Select the option to send money using account number and IFSC code
4. Enter the transaction amount, IFSC code, and beneficiary account number
5. Enter your MPIN and the last four digits of your bank account number to complete the transaction

Conclusion

USSD banking helps bridge the gap between traditional banking and underserved populations through a simple mobile-based service.

Its biggest advantage is that it does not depend on internet access, which makes it useful for a wider user base.

With services such as balance inquiries, fund transfers, and recharge support, USSD banking offers a convenient and accessible way to perform basic financial transactions.