The Reserve Bank of India wants to make it possible for anyone to send money to another party, regardless of whether that party has a bank account. All the users would have to have is a mobile phone.

According to a report from LiveMint, a government intermediary will be set up to facilitate the transactions. A sender would initiate the transfer via SMS to the recipient′s mobile phone, who would receive a PIN. The recipient can then enter that PIN into any ATM to get their cash.

India currently has about 900 million mobile phones in circulation, but roughly half of the adults in the country are unbanked or underbanked.

"Cashing out is important for remittances because we have a large recipient population in the country, most of whom do not have access to formal banking services," said (RBI governor Raghuram) Rajan. "The system will take care of necessary safeguards of customer identification, transaction validation, velocity checks, etc. We need more such innovative products, some of which mobile companies are providing."

Read more about mobile banking.