Dubbed as ‘Instant Money Transfer'(IMT), the service allows any Bank Of India customer to send money to any user by using the receiver’s mobile number and a sender code via a text message, its Internet banking facility or its IMT enabled ATMs.
The receiver can then withdraw this money from one of these IMT enabled ATMs by providing details like their mobile number, amount sent, sender’s code and a SMS pin sent to the receiver via SMS within 14 days of the money transfer, failing which the amount is credited back to the sender’s account. Note that the receiver doesn’t have to be a customer of Bank Of India or any other bank, however partial withdrawals are not allowed at the moment.
The company website currently lists 36 IMT enabled ATMs across cities like Mumbai, Delhi, Pune and Lucknow among others, although the bank chairman VR Iyer has told the publication that all 4,100 Bank Of India ATMs will offer this facility shortly.
As per Bank of India’s website, the transaction has to be in multiples of Rs 100 up to a maximum of Rs 10,000 per transaction. There is also a flat non-refundable fee of Rs 25 per transaction. For receivers, there is a monthly withdrawal limit of Rs 25,000.
There is also an option for senders to cancel unpaid transactions via these ATMs or Internet banking at no extra cost. Iyer says the bank is also working to enable its International customers to use this service.
This move follows the RBI Governor Raghuram Rajan’s announcement last month, wherein he had mentioned that RBI is currently working on a new system that will allow users to withdraw cash from ATMs even if the recipient doesn’t have a bank account. Through this service, RBI was looking to cater to the unbanked population in urban and rural areas.
It’s worth noting that Axis Bank had earlier partnered with Empays Payment Systems to launch a similar mobile-based bank-agnostic domestic remittance service for its India customers in September 2010. There is currently no information whether Bank Of India has partnered with any company to offer this service.