M A I N   N E W S

From Ludhiana to Begusarai, money transfer via mobile
Scheme begins between Punjab & Bihar postal circles
E-transfer of up to Rs 50,000 can be made instantly
Complete roll out of scheme across the country in 8 weeks
Pradeep Sharma/TNS

Chandigarh, June 1
The tedious process of transferring cash through traditional money order is a thing of the past with Union Minister of State for Home Affairs, Communications and Information Technology, Gurudas Kamat, today launching a unique Mobile Money Transfer Service (MMTS), an SMS-based service for instant transfer of money up to Rs 50,000.

Launching the service, a joint venture of the Department of Posts (DoP) and the Bharat Sanchar Nigam Limited (BSNL), Kamat asserted that this was another initiative of the Congress-led UPA Government to ensure financial inclusion of “aam admi” in the mainstream.

Kamat also hinted at the reduction in commission for sending the money order, which is pegged at 5 per cent of the money to be remitted.

The minister said in the first phase the service was being launched between Punjab and Bihar postal circles for transfer of money up to Rs 50,000. The complete roll out throughout the 1.55 lakh post offices, particularly in the rural areas, would be completed in eight weeks, he added.

Informing that there were over 850 million mobile connections in the country, Kamat said the government had planned to have 600 million mobile connections by 2012 but the target was exceeded by the March 2010.

Radhika Doraiswamy, Secretary, Department of Posts, hoped that the new service would go a long way in speeding up the money transfer services for the benefit of the people working in the far-away areas, specially the migrant labour.

How it works

• The person intending to use the service would have to go to the post office, which will provide him a unique PIN code after the transfer of money
• The money sender would have to send the PIN to the recipient through a text message. The recipient will be delivered the money after verification of the PIN
• The recipient can also go to the post office and collect the money