By Mohammed Waseem
I wrote about instant money transfer offered by Bank of India in the last post. This service requires the senders to be customers of BOI while the recipient can be just anyone. The unbanked are still away from instant money transfer, considering that the withdrawal should be done from a BOI ATM only.
Like Kenya innovated to create a product like M-Pesa, India is working on a product called OxiCash. Over 60% of the unbanked population will now be able to instantly send and receive money across India through this service. OxiCash was launched earlier this year by Oxigen Services. The service works via a mobile wallet, comparable with M-Pesa.
In addition, senders are able to send money from a bank account to the wallet. All transfers are instant and on real time basis. The project is a partnership between NPCI (National Payments Corporation of India) and Oxigen. The real time transfer is done using IMPS (Immediate Payment Service).
55 banks have joined in to support transfers from bank account to OxiCash wallets. It is available for use online at www.oxicash.in and on mobile using a mobile application on Android smartphones. In addition, the service can be accessed with SMS as well, to support non-smartphone users.
The service is available all over India and can be created over simple SMS. The wallet can be initially funded at over 100000 touch points or through IMPS.
Oxigen also has wallets to use for reloading mobile phones, DTH and other services, apart from money transfer. Money transfer from the wallet can be done in three ways, which are wallet to wallet, wallet to bank account using MMID (Mobile Money Identifier) and wallet to bank account using the account number.
The ability to transfer to any bank account is amazing. It uses the IFSC (Indian Financial System Code) to make this possible.