Pay an additional of 2% on every mobile banking transaction

The customers who intends to operate their account through their cell phones will have to pay a commission of 2 percent to their corresponding bank .

According to the inter ministerial report the customers will be able to transfer, withdraw or deposit money through their cell phones or through the micro ATM service provided by the telecom operators. It aims to link the account with UID of an individual but it could be done only after the approval from RBI.

The report says “To promote adoption, government payments under various schemes will be directly credited to these mobile linked no-frills accounts once the citizen registers with the government agency providing such benefits,”

According to the report the banks have to pay 1.4 percent of the commission to the telecom operators that will gradually reduce to 1 percent over a period of next five years.

A few days ago State Bank of India finalized the deal with Bharti Airtel and ICICI bank with Vodafone Essar to provide mobile banking and other financial facilities to the customers of the bank.

Bharti Airtel and Vodafone will act as a business correspondent for the respective banks under the norms laid by RBI on Financial Inclusion Plan and will handle the financial services provided by the bank.