MUMBAI: National Payments Corporation of India (NPCI) has proposed to telecom companies a tiered-price structure for enabling mobile banking using the short code *99# across service providers. The proposal is aimed at ending the stalemate on pricing.
To enable mobile banking service even on the most basic of phones, NPCI is building a mobile payment central infrastructure based on USSD based services. USSD refers to unstructured supplementary service data-a protocol by which handsets can establish a live link with the mobile companies servers. This is the service used by mobile companies to recharge prepaid mobiles and activate value added services.
NPCI had earlier told telcos that a uniform price structure applicable to all banks and customers will bring transparency and ease of reconciliation. However, when the view was not accepted by telcos, NPCI withdrew the proposal and sought alternate modes of pricing.
In a communication to TOI, NPCI said that since different price by telcos for different banks would lead to confusion in pricing, it has submitted a principle of tiered price structure based on volume. "At no point of time, NPCI had presented the price of 10 paise," NPCI said.
The government has announced the launch of a common short code *99# for accessing mobile banking and has asked telcos to reserve this number for financial services through NPCI. NPCI's central infrastructure will enable telcos to provide connectivity to all banks through one single link to the central infrastructure.
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