The next time you are at the grocer’s, change will not be a problem, for the transaction would get completed through mobile phone.
Mobile remittance service, which has been successful in emerging market economies like Kenya and the Philippines, was launched in the country on Monday. It will allow real-time fund transfer from a person’s bank account to another’s.
The Interbank Mobile Payment Service — which at present has seven banks including the largest lender SBI on board — had the potential to change the retail payment landscape in India, which boasts of 600 million mobile subscribers and 300m bank accounts, Reserve Bank deputy governor Shyamala Gopinath said.
National Payments Corporation of India, promoted by 10 banks, will act as the settlement agency between banks and deliver back-end support.