Mobile banking in India is to take new heights with banks allowing fund transfer facility from ATMs to cell phones of the customer. Regulator Reserve Bank of India has given permission to National Payments Corporation of India (NPCI) in this regard.
Mobile banking is still in a very nascent stage in India. In order to bring a boost in this segment, which happens to be a promising one, RBI has agreed to expand the Interbank Mobile Payment Service (IMPS) initiated by NPCI.
IMPS has managed to give a significant pump up to the mobile banking scenario in India since its inception in August 2010. The number of mobile transactions has seen a rise from 430 in August 2010 to 12,511 in October 2011.
"The IMPS has so far facilitated instant inter-bank funds transfer between the sender and the receiver using the mobile. Now, following the RBI's permission, the IMPS will also facilitate funds transfer from ATM to mobile and the Internet to mobile," said Mr A. P. Hota, Managing Director and CEO, NPCI.