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Interbank Mobile Payment Services to make fund transfer through mobiles easy

November 22, 2010‐ Mumbai, India

Developing countries such as India can make the best of modern technologies. Mobile telephony has been a blockbuster hit in India. And it is not just communication companies that are trying to take advantage of this. Banks, backed by the technology-savvy private sector banks and the mammoth-Government sector banks are coming closer to offer inter-bank transfer of funds using mobile phones.

The Deputy Governor of Reserve Bank of India (RBI) Shyamala Gopinath, speaking at the launch of National Payments Corporation of India (NPCI) said seven banks have teamed up to offer the services. Bank account holder will be given a Mobile Money Id (MMID). A special mobile application can be used to connect to the banking network with the help of the MMID and the Mobile Number. Inter-bank fund transfer can be done with the help of the application. Mobile phones users who cannot use the mobile phone application can do transactions using SMS, albeit at a nominal cost of Rs. 2 per SMS transaction.

A limit of Rs. 50,000 per day for both fund transfer and transactions involving purchase of goods ands services is put for mobile devices that had end-to-end encryption. The limit is Rs. 1,000 where end-to-end encryption is unavailable.

State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC are ten core banks who teamed up with NPCI.

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