Get ready to pay for mobile banking service from April 2011

"NPCI will be providing services to member banks free of charge till March 31, 2011. Thereafter, a switching fee of Rs.0.25 per transaction will be levied by NPCI on member banks,” Minister of State for Finance Namo Narain Meena said Friday in a written reply in the Lok Sabha.

“Member banks may levy a fee on the customers as per the policy formulated by them,” he added. Currently, NPCI is providing inter-bank mobile payment services free of charge to seven banks - State Bank of India, ICICI Bank, Union Bank of India, Bank of India, Yes Bank, Axis Bank and HDFC Bank.

Inter-bank mobile payment service (IMPS) allows a customer in one bank to remit funds to an account holder in another bank. Mobile phones are used as the service delivery channel.  For providing this offer, the bank needs to have authorisation from Reserve Bank of India and has to be admitted as a member of IMPS.

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