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India: NPCI to charge banks for mobile transactions

Thursday 17 March 2011 10:40 CET | News

The National Payment Corporation of India (NPCI) is expected to charge 10 paise (0.10 INR) to remitting banks for every mobile transaction on the Inter Bank Mobile Payment Service (IMPS) application starting with 1 April 2011. NPCI had earlier planned to levy a charge of 25 paise (0.25 INR) per transaction from the remitting bank.

The IMPS is an application designed to enable users to perform account-to-account money in India using their mobile devices. 14 banks are currently using the IMPS application and 12 others are in the process of joining the service.

However, NPCI is planning to allow banks the option to charge their respective customers according to their policies.

How it works

Both sender and receiver have to register with their bank to secure a seven-digit mobile money transfer identifier number (MMID). Then, the payer transfers the amount in the payees account. As soon as the transaction has been completed, both payer and payee are expected to receive SMS confirmations on their mobile devices.

The NPCI is the umbrella organization for all retail payment systems in India owned and operated by banks. In September 2010, seven India-based financial services providers have made the IMPS service available for their customers.


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Keywords: National Payment Corporation of India (NPCI), Inter Bank Mobile Payment Service (IMPS)
Categories: Banking & Fintech
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Countries: World
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Banking & Fintech






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