As the name suggests, the SMS based mobile banking is an application that will allow the customers to carry out the transactions through the use of SMS send through the smart phones. Nowadays the mobile banking facility is gaining a lot of importance. This SMS based mobile banking is already gaining importance in the western countries but not used in our country. The SMS based mobile banking can work in any kind of phones. It does not require only the smart phones or the higher end phones. This will be one of the applications that one can work and implement in real time world.