The app has been developed by Kochi-based technology firm MobME and allows users to send money in three steps. Receivers don’t necessarily need to have accounts with HDFC Bank.

The app launch is part of the bank’s initiatives to drive digital banking under its campaign called GoDigital. In FY14, 55 per cent of all transactions at HDFC Bank were conducted through digital channels, the bank said.

Chillr, accessible on Android and iOS operating systems, is linked directly to the customer's bank account, so it does not need to be recharged or filled.

In view of security concerns around use of digital modes for banking, the bank said the app is secure as it can be accessed only through an M-PIN, which is issued by the bank and is known only to the customer. Additionally, the app will not store any passwords and have customised keyboard to safeguared against phishing attacks.

"The Chillr app will benefit various segments of people such as students, young professionals, and migrant workers, and gives the convenience to send and receive money using a mobile phone in a secured way," said Nitin Chugh, head of digital banking at HDFC bank.

"The app is one more important step by the bnak to leverage technology and digital to offer banking services anytime and anywhere." The app can be used 24-hours a day and seven days a week.

The bank believes that the app will work as an important tool for financial inclusion in rural markets. The bank has piloted the use of Chillr for its Sustainable Livelihood Initiative (SLI), where it reaches out to people at the bottom of the pyramid by providing them with livelihood finance and skill training.

"The participants running small businesses use the app to make payments to employees, avoiding the hassle of traveling to the nearest ATM to withdraw cash," HDFC Bank said in a statement.