National Payments Corporation of India (NPCI) is coming up with its round the clock payment facility in November this year which will facilitate customers to transfer funds to any account in India for free using their mobile phones. The facility would be the first of its kind to be started in India.
"RBI (Reserve Bank of India) has permitted only a pilot run with a limited number of banks. Five banks (State Bank of India, ICICI Bank Ltd, Union Bank of India, Bank of India and Yes Bank Ltd) are already live," said A.P. Hota, managing director and chief executive of NPCI.
He said that Axis Bank and HDFC Bank are in queue to join the system.
The interbank payment system (IMPS) of NPCI is the first of its kind to allow global transactions between people via banks and mobile service providers.
RBI guidelines have directed that the maximum number of allowable transactions in a day should be restricted to 50,000. No frills savings account holders can also avail this facility.
In order to avail this facility, the sender should have registered for mobile banking facility with his bank and both sender and receiver will have to get a special Mobile Money ID (MMID) from the bank, apart from sharing their mobile numbers with it.
On the successful completion of transaction, both sender and receiver will get an SMS confirming the same.