National Payment Corporation of India (NPCI) is providing Interbank Mobile Payment Service (IMPS) with seven banks viz, State Bank of India, ICICI Bank, Union Bank of India, Bank of India, Yes Bank, Axis Bank, HDFC Bank. The service allows a customer in one bank to remit funds to an account holder in another bank. Mobile phone is used as a service delivery channel of the member banks. For providing this offer, the bank needs to have authorization from Reserve Bank of India and has to be admitted as a member of IMPS. Till 31st March 2011, NPCI will be providing the service to the member banks free of charges. Thereafter switching fee of Rs. 0.25 per transaction will be levied by NPCI to member banks. Member banks may levy a fee on the customers as per the policy formulated by them. However for the present, they have also been providing this service free of charges.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Lok Sabha today.  Interbank mobile payments enabled across member banks; switching charges later imposed on member banks while customer fees remain discretionary. NPCI operates an Interbank Mobile Payment Service allowing interbank mobile remittances through member banks; banks must obtain RBI authorization and IMPS membership. NPCI will waive switching charges to members until the stated date, after which a per-transaction switching fee will be levied on member banks. Member banks may impose customer fees per their policy but initially provided the service free.