10 paise fee proposed for money transfers via bank mobile platform

National Payments Corporation of India, the umbrella organisation of retail payment systems, has proposed 10 paise as switching fee for mobile money transfers using the Inter Bank Mobile Payment Services (IMPS) from April 1.

NPCI had planned to charge 25 paise for each successful transaction from the remitting bank for the next financial year. The reduction in the fee is to provide momentum and impetus to mobile-based financial transactions, said a press release issued by the corporation.

For the current financial year, the fee has been waived to promote the product.

The release also said that while this charge would be applicable to the sending bank, banks have the freedom to charge their respective customers according to their policies.

Currently 14 banks are live on the IMPS and are offering money transfers through mobile, with Development Credit Bank being the latest to join. Ten banks are at various stages of joining the service, the release said.

The banks that are live include Axis Bank, Bank of India, HDFC Bank, ICICI Bank, State Bank of India, YES Bank, Union Bank of India, Lakshmi Vilas Bank, Kotak Mahindra Bank, Federal Bank, Corporation Bank, Oriental Bank of Commerce, Indian Bank and DCB.

The banks that are in the various stages of joining the service are

IDBI Bank, Syndicate Bank, Citibank, Karur Vysya Bank, Andhra Bank, Punjab National Bank, Indian Overseas Bank, Canara Bank, IndusInd Bank, South Indian Bank, State Bank of Travancore and State Bank of Hyderabad.