RediffMail.com has become the 1st portal to offer 1GB email storage.

Effective from 17th June, 2004 Rediff.com India Ltd has increased the e-mail space provided on its portal for free users to 1 GB (1,000 MB) from 5 MB and that of its premium users to 2GB from 10 MB, even as the company hiked the single outgoing and incoming e-mail message size to 10 MB. Rediff.com also increased single e-mail message size to 10 MB from the earlier 1 MB provided for free users and 5 MB offered for premium users.

View the full news story : http://in.rediff.com/money/2004/jun/17rediff.htm

Yahoo! enhances free email quota:

Get 100MB free storage Keep more of the things that are important to you, like special photos, without worrying about bumping up against your storage limit. Yahoo! Mail gives you plenty of space at absolutely no cost. If you prefer to keep your photos in an album, simply upload them right from Mail to Yahoo! Photos, where you get unlimited storage.

Update to Yahoo mail: Yahoo is said to be offering 1GB of email storage space. However, my personal yahoo! email storage is still showing 250MB. This may be applicable to new registrations! Please checkout. 

Send and receive messages up to 10MB Photos. Presentations. Documents. Attach them all. Total message size can be up to 10MB.

GMAIL: Gmail is still under beta testing and the service expected to be made available soon. Gmail is a free, search-based webmail service that includes 1,000 megabytes (1 gigabyte) of storage. The backbone of Gmail is a powerful Google search engine that quickly recalls any message an account owner has ever sent or received.