Federal Bank Ltd. has become the latest bank to join the interbank funds-transfer service the National Payments Corp. of India launched last year, a spokesperson for the Kochi-based bank tells PaymentsSource.
In November, National Payments rolled out the service, which enables customers of partner banks in the country to exchange funds with one another (
The service began with seven banks but has since added three more to the partnership, the last being Karur-based Lakshmi Vilas Bank in February (
Corporation Bank Ltd., Citibank India Pvt. Ltd., Standard Chartered Bank India Pvt. Ltd. and Canara Bank Ltd. are among 19 or so other banks that also plan to participate, according to the corporation.
To use the service, a consumer would register for mobile banking with a participating bank and receive a seven-digit mobile-money identifier and a mobile-banking PIN, the spokesperson says.
To transfer funds, the sender first must download the mobile-money application and enter the PIN, the beneficiary’s mobile-phone number and mobile-money identifier, and the amount to be sent. The beneficiary receives a text confirmation when the funds are sent, and he may deposit the funds into his account, withdraw them at an ATM, or approach a business correspondent to secure the cash. A business correspondent is a bank-appointed official who assists customers in performing basic banking functions on mobile terminals, mostly in rural areas.
The Reserve Bank of India has set a daily transfer cap of 50,000 rupees (US$1,095 or 820 euros) per customer.
Customers pay only mobile-operator charges; banks will be offering the service free to customers until March 31. Such banks as ICICI Bank Ltd. and State Bank of India Ltd. have indicated they may impose a charge for the service after that date.
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