SMS banking which is a technology enabled services to its customers, permitting them to operate selected banking services over their mobile phones. To implement this system, "SMS Banking Using Cell Phone" a GSM Phone is connected by a data cable to a computer. The system will receive SMS from customers via GSM phone. The received message will be saved into a table in the database automatically. The message is to be read and compare with the criteria to the database record and manipulate the desired result. Then the result is automatically sent to the customer Phone and the update record is saved to the database. With this system the customer can create an account, see the balance, transfer balance to another account and can take various help through SMS and much more. The proposed system will add a new convenience to online banking services. With the contributions of this work the customers remain connected with the bank more closely- anywhere and anytime, just sending SMS and receive all pull and push services instantly. The data transmission will be held using Mobile Phone Network. The mobile interfaces to the PC by the data cable through communication port. To develop the system we used Visual Basic and MS SQL server on the Windows Platform.