More banks rolling out card-to-card money transfer

Mumbai, March 30 | Updated: Mar 31 2005, 05:30am hrs
Card to card money transfer is gaining ground in India with more banks foraying into this business. Kick started by IDBI Bank, which tied up with Visa International recently, HDFC Bank, ICICI Bank, Citibank, among others are rolling out a similar product.

According to Santanu Mukherjee, country manager (South Asia), Visa International, said, There are some more banks in the pipeline which are at the discussion stage with Visa. This will enable the banks customers to transfer money from their bank account or Visa card to any other Visa debit or credit card across 150 locations in the country, he said.

Rahul Khosla, senior vice-president Asia-Pacific region, Visa International, said, The total volume of cards in India is around 2.7 crore. Some products like prepaid card serve a miniscule part of the population. But the entire mass can exchange value with products like card to card money transfer with the existing infrastructure.

On Wednesday, HDFC Bank had launched HDFC Bank Visa Money Transfer service to enable its savings and current account holders to transfer money to any Visa branded cards in the country through the internet. This transfer system reduces transaction cost compared to traditional money transfer services currently being offered like cheques, demand drafts, telegraphic transfers and electronic funds transfer, said Neeraj Swaroop, country head retail banking, HDFC Bank.