New IMPS fund transfer rules coming soon: Here is all you need to know
New Delhi, Jan 30, 2024
New IMPS rules will be implemented from February 1, 2024. This will facilitate fund transfers using a mobile number and bank name
There was a time when one had to visit the bank to send their money to another recipient bank account. The online methods have eased the process of sending and receiving money. Nowadays, you can make the transactions with just a few clicks.
The process will now be much easier for users to transfer money through IMPS (Immediate Payment Service) with just a mobile number and bank account name.
With these new rules of the National Payments Corporation of India, there is no need to add beneficiaries and the IFSC code to make transactions.
The NPCI has issued a circular dated back on October 31, 2023, requesting all the members to take note of the same and comply with initiating and accepting fund transfers via mobile number and Bank name on all the channels of IMPS by January 31, 2024.
The circular also directed remitter banks to maintain a mapping of Member Bank Names with default MMID and enhance UI/UX to facilitate beneficiary validation and financial transactions using mobile numbers and bank Names. Banks shall give the option to add a successful mobile number and bank name with a combination of payee/beneficiary on Mobile Banking and Internet Banking channels.
Immediate Payment Service (IMPS)
IMPS is one of the most popular methods of money transfer. It is an important payment system that allows 24x7 instant domestic funds, which is accessible through different channels like mobile banking apps, bank branches, ATMs, SMS and IVRS.
How does IMPS payment currently work?
Immediate Payment Service processes transactions through person-to-account P2A (Account + IFSC) or person-to-person P2P (Mobile Number + MMID) transfer modes. With the migration of IMPS from ISO to XML, we have envisaged a convenient customer journey that shall be carried out with the help of Mobile Number and Bank Name.
What if multiple accounts are linked with one mobile number?
As per NPCI circular, if multiple accounts are linked with a mobile number, the beneficiary bank shall credit to the primary/default account. The primary/default account shall be identified using the customer's consent. The transactions will be declined without consent.
How much money can one transfer using IMPS?
As per different media reports, one can transfer up to Rs 5 lakh through simplified IMPS without adding a beneficiary.
How to transfer money through IMPS?
Here are the simple steps to transfer through IMPS:
1.Open the mobile banking application
2.On the main page, check for the Fund transfer.
3.Choose IMPS as a method of fund transfer.
4.Enter the details like MMID (Mobile Money Identifier) and your MPIN (Mobile Personal Identification Number).
5.Enter the amount and confirm.
6.Share the OTP received on the registered mobile number and complete the transactions.
[The Business Standard]
