The Hindu online reports the Reserve Bank of India, India's central bank, has allowed the National Payments Corporation of India, an umbrella organization of retail payment systems in India created to develop the backbone for electronics transactions such as ATMs and mobile payments, to enable money transfers from ATMs and the Internet to mobile phones.
According to the post, the move is meant to spur mobile banking transactions through NPCI's Interbank Mobile Payment Service.
"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 A. P. Hota, managing director and CEO, NPCI.
The story notes that transactions on the IMPS have been slow since it was launched in August 2010 with four member banks; however, since October all major banks in India have joined the network.
The system is relatively simple but does rely on customers registering with member banks to receive an ID and PIN to send funds. Recipients of funds must also register with a bank to link their cell phones to their bank accounts and also receive an ID number.
For more information on this topic, visit our mobile banking research center.
