Mobile phones have already become a multi-purpose banking gateway. You can buy movie tickets, transfer funds to others’ bank account and pay utility bills, all from your cellphone. Mobile banking has just taken another step to make your life easier and wallet lighter.
Now, you need not carry your automated teller machine (ATM) card to withdraw cash, if you are an IndusInd Bank Ltd customer and are carrying your cellphone.
What is the facility?
IndusInd Bank offers this new cardless cash facility called “Cash-on-Mobile” which you can get through newly launched mobile banking application IndusMobile. The facility enables you to withdraw cash from an ATM without using your ATM/debit card. Says Ritesh Saxena, senior vice-president and head (personal accounts and direct banking), IndusInd Bank, “The facility is currently available at 260 ATMs in select cities; it will soon be extended to all 650 ATMs across the country.”
Is it a first?
The bank claims to be the first to launch such an initiative. In 2008, Standard Chartered Bank Ltd had launched a similar facility. As per the bank’s website, “This service allows Standard Chartered Bank customers to transfer cash instantaneously to anybody irrespective of whether the beneficiary has an SCB account or not within all cities where SCB is present.” But SCB’s cardless card service requires you to use your ATM card to send money to a third party so that the third party can make cardless cash withdrawal at an ATM.
A senior officer of a Bangalore-based private sector bank, who did not want to be named, says, “A few years bank, a leading private sector bank (he didn’t want to name it) had launched a cardless cash withdrawal facility, too, but that didn’t pick up. So we don’t think we will see many banks offering such initiatives.”
However, some others are positive about the facility. A former banker and transaction banking head of a private sector bank, who did not want to be named, says, “If you put a parallel to this service, it’s very similar to Western Union model. Here the mobile number is used as an ID and you also get a password. But instead of going to a centre to collect the money, the third party has to go to an ATM. As long as there are no security issues, this service sounds okay.”
How do you get it?
You will have to register for the service at any IndusInd branch or ATM via the bank’s Internet banking channel. You could also call up the bank’s customer service centre and get yourself registered. Once registered, you will receive a four-digit MPIN (mobile personal identification number), just like you get a PIN to use your card at an ATM. This MPIN will ensure the security of your transaction and work as an authorization code.
You need to download the application on your cellphone. You also have the option of using the SMS channel. For this, you need to send an SMS to 919223173927. The bank will send a weblink for the application.
You can use a GSM phone with a GPRS connection. This service can be used on select CDMA handsets as well.
What do you get?
The service is free of cost. You get the facilities you normally get an ATM, including balance enquiry, mini statement and request for a cheque book or demand draft. You will be able to make intrabank fund transfer, mobile to mobile fund transfer, mobile to account fund transfer, even Net Electronic Funds Transfer (NEFT) and interbank funds transfer. Interbank Mobile Payment Service (IMPS) is a part of this mobile application.
Cash limit: You can withdraw up to Rs 5,000 per day through cash-on-mobile. As mentioned above, the Indusmobile has IMPS (mobile-to-mobile) and if you transfer funds through IMPS, the limit is Rs 30,000 per day per transaction and Rs 4,000 using SMS.
All bill payments come with a limit of Rs 20,000 per day per transaction.
How do you use it?
To initiate the transaction, go to the IndusMobile application you have downloaded. Use your MPIN and make a request to the bank (a secured message will be sent to the bank) for the cardless withdrawal facility, specifying the withdrawal amount. The bank will send you a temporary password. You will have to generate another password for yourself through the application.
At the ATM, choose the cash-on-mobile option on the screen. You will be asked to enter your mobile number, the amount and the temporary password sent by the bank as well as the password you generated. Saxena says, “Only when all four match, the ATM will dispense cash. Making this a highly secured transaction.”
You can even use this facility to send money to a third party. For instance, if you want to send money to a friend in another city, feed in your friend’s mobile number and the amount (you permit him to withdraw) on IndusMobile. The bank will send him a temporary password and you need to send the password you generated to him. He can then go to the bank’s ATM and follow the same procedure through the cash-on-mobile option and withdraw money. Your friend does not need to be an IndusInd Bank customer or register for this service. In fact, he need not have a banking account at all.
What if your cellphone is lost or stolen? Says Saxena, “Just like when you lose your debit card, you inform the bank, you will have to inform the bank immediately if you lose the mobile and the bank will take necessary steps.”
But do keep in mind that you do not store you MPIN on your mobile itself.