The country’s largest lender, State Bank of India (SBI), will allow customers to withdraw funds from its ATM without a debit card and transfer up to Rs 10,000 using a mobile phone.
By launching the instant money transfer (IMT) payment system on its ATMs, the state-owned lender has enabled customers a payment up to Rs 10,000 to be made from any SBI bank account to a person using just his/her mobile number as the identifier. “The recipient of this payment can withdraw funds instantly from an IMT-enabled ATM of SBI without using a debit card,” the bank said.
The IMT service allows account holders to direct their bank — via SMS or app — to transfer funds to a particular mobile phone number. The bank then messages two separate codes to the account holder and the receiver on their respective mobile numbers. The receiver has to enter the two codes at the ATM to withdraw cash.
Using IMT, SBI will be able to offer a unique payment option to its customer base and expand its reach to those unbanked section of the population as well to the ones who do not have access to their bank accounts. Additionally, it offers a new form of convenience payment to the emerging younger generation.
IMT is a unique payment system launched in India by Empays Payment Systems, which is authorised by the Reserve Bank to enable a payment to be made to a mobile phone from a bank account. There is no requirement for the beneficiary to have a bank account. The receiver can obtain the funds immediately from any IMT-enabled ATM.
“IMT will bring a revolution in the payment system of the banking industry where remittances can be withdrawn at SBI ATMs without having a debit card. This facility will be more useful for the migrant population who are regularly sending money to their native places. The IMT will also eliminate the middle men who are charging commission for remittances,” the SBI statement said.