Mobile remittance comes to India
I was so fascinated by this latest development (only recently I was lamenting that there must be some simple mechansm of making payments (say for instance our directory purchase OR sss-global meeting charges) that I have made a compilation of news items on this mobile remittance. Only aspect on which I could not get any info: Safety and security of such transactions. Minor duplications of news could not be avoided. PVM
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The prescribed limits are Rs50,000 per day for end-to-end encrypted transactions and Rs1,000 per day for unencrypted transactions. At present, the State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Union Bank of India, Yes Bank and Bank of India
The NPCI has asked banks not to levy any charges to the customers till March 2011 for the service. The NPCI too is not charging banks for offering the IMPS facility to people.
After March 2011, the NPCI will charge banks 25 paise per transaction. At present, customers will only have to pay the nominal charge levied by the telecom service provider for using GPRS to facilitate the transaction.
Using the facility is simple. All one needs is the mobile number of the vendor apart from the seven-digit mobile money identifier (MMID). The MMID is a unique number assigned by the bank for each account linked to any cellphone number. Money can be transferred to the vendor's account within seconds and the customer will get a confirmation immediately after.
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Mobile remittance now in India
22 November 2010
press trust of india
MUMBAI, 22 NOV: India today moved a step closer to making mobiles virtual wallets by launching services that allow seamless and real-time fund transfer from one person's bank account to another through cellphones.
Mobile remittance services, which have done wonders in other emerging market economies such as Kenya and the Philippines, are expected to change the retail payment landscape in the country that has over 600 million mobile subscribers and 300 million bank account holders.
The Interbank Mobile Payment Service (IMPS), which currently has seven banks including the largest lender SBI on board, was launched by the Reserve Bank Deputy Governor, Ms Shyamala Gopinath.
She said the service has the potential not only to change the retail payment landscape in India but also help push financial inclusion, on the back of high mobile penetration.
National Payments Corporation of India (NPCI), promoted by 10 banks, will act as the settlement agency between banks and deliver the back-end support to the system.
"This is the first-of-its-kind system in the country and the real power would be when it starts delivering in the rural areas," NPCI's chief executive, Mr AP Hota, told reporters.
To avail of the service, an account holder will have to get mobile money ID (MMID) from the bank. MMID will be his ID for all mobile commerce transactions.
The banks will install special application on the mobile phone from where the remitting will be done.
Once the process is complete, the bank account holder can remit money to anyone, provided he has the receiver's MMID and mobile phone number.
In case of a low-end phone, where the application cannot be installed, money can be transferred through SMS.
Initially, the service will be free for the account holder with banks bearing the cost of 25 paise per transaction.
In case of SMS-based remittance, the user will be charged Rs 2 per SMS, which NPCI is trying to get waived by talking to mobile phone operators, an NPCI official said.
Currently, the Reserve Bank regulations cap the maximum amount to be remitted through mobiles at Rs 50,000 a day.
Ms Gopinath said the launch of such a service will help in financial inclusion because of the success of mobile telephony in the country.
She said stakeholders in the scheme ~ banks, merchants and mobile phone companies ~ should work together for greater integration to help reduce the use of cash and encourage the use of "mobile wallets".
Ms Gopinath said, the RBI is encouraging the bank-led model for m-commerce, which allows the whole gamut of services such as deposits, withdrawals and remittances rather than the less secure non-bank led model.
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SBI has already registered 8.5 lakh cutomers uunder this system while ICICI has got 4 lakh people registered, Hota said.
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Paying bills through mobile banking just became easier. The National Payments Corporation Of India, which oversees and facilitates all retail payments and settlements, has taken the next big step in customer-friendly banking. It has launched a service providing interbank mobile transfer facility. So far, a customer of one bank could transfer money only to accounts of the same bank. To ensure safety, only customers registered with their bank can avail of this service. Currently, seven banks have launched the scheme.
Shyamala Gopinath, deputy governor of the Reserve Bank of India (RBI), said, "We have permitted about 40 banks to offer mobile payments to their customers. The IMPS has the potential to change retail payment scenario in the country."
Seven other banks are in the process of going live with the service and some 20 banks are at an early stage of adopting IMPS, said AP Hota, managing director and chief executive, NPCI.
In India, there are more than 60 crore mobile phone subscribers, but there are less than 20 crore 'active' bank accounts. Although on record there are about 31 crore savings bank accounts, many of them are either multiple accounts or they are not operational. IMPS could help revive these accounts.
Transactions up to Rs1,000 a day can be facilitated by banks without end-to-end encryption.
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On Tue, Nov 23, 2010 at 6:01 AM, Raghavendra Rao Venkatasubbarao <vrvrao45@gmail.com> wrote:
Mobile remittance now in India
22 November 2010
press trust of india
MUMBAI, 22 NOV: India today moved a step closer to making mobiles virtual wallets by launching services that allow seamless and real-time fund transfer from one person's bank account to another through cellphones.
Mobile remittance services, which have done wonders in other emerging market economies such as Kenya and the Philippines, are expected to change the retail payment landscape in the country that has over 600 million mobile subscribers and 300 million bank account holders.
The Interbank Mobile Payment Service (IMPS), which currently has seven banks including the largest lender SBI on board, was launched by the Reserve Bank Deputy Governor, Ms Shyamala Gopinath.
She said the service has the potential not only to change the retail payment landscape in India but also help push financial inclusion, on the back of high mobile penetration.
National Payments Corporation of India (NPCI), promoted by 10 banks, will act as the settlement agency between banks and deliver the back-end support to the system.
"This is the first-of-its-kind system in the country and the real power would be when it starts delivering in the rural areas," NPCI's chief executive, Mr AP Hota, told reporters.
To avail of the service, an account holder will have to get mobile money ID (MMID) from the bank. MMID will be his ID for all mobile commerce transactions.
The banks will install special application on the mobile phone from where the remitting will be done.
Once the process is complete, the bank account holder can remit money to anyone, provided he has the receiver's MMID and mobile phone number.
In case of a low-end phone, where the application cannot be installed, money can be transferred through SMS.
Initially, the service will be free for the account holder with banks bearing the cost of 25 paise per transaction.
In case of SMS-based remittance, the user will be charged Rs 2 per SMS, which NPCI is trying to get waived by talking to mobile phone operators, an NPCI official said.
Currently, the Reserve Bank regulations cap the maximum amount to be remitted through mobiles at Rs 50,000 a day.
Ms Gopinath said the launch of such a service will help in financial inclusion because of the success of mobile telephony in the country.
She said stakeholders in the scheme ~ banks, merchants and mobile phone companies ~ should work together for greater integration to help reduce the use of cash and encourage the use of "mobile wallets".
Ms Gopinath said, the RBI is encouraging the bank-led model for m-commerce, which allows the whole gamut of services such as deposits, withdrawals and remittances rather than the less secure non-bank led model.
--V Raghavendra Rao16-09, Scott Sentral Condominium,Jalan Scott,Brickfields,Kuala Lumpur 50470Malaysia
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