New IMPS money transfer rules from next month: What you must know | Mint
Active Stocks
Fri Feb 23 2024 15:58:13
  1. Tata Steel share price
  2. 145.50 -0.24%
  1. State Bank Of India share price
  2. 759.40 -0.86%
  1. HDFC Bank share price
  2. 1,420.90 0.08%
  1. NTPC share price
  2. 337.70 -0.54%
  1. ITC share price
  2. 411.60 -0.65%
Business News/ Money / Personal Finance/  New IMPS money transfer rules from next month: What you must know
BackBack

New IMPS money transfer rules from next month: What you must know

Starting from 1 February, users can transfer money through IMPS by just adding the receiver's mobile number and bank account name, eliminating the need to add a beneficiary or IFSC code

Immediate Payment Service (IMPS) is one of the most commonly used methods of money transfer. (Mint)Premium
Immediate Payment Service (IMPS) is one of the most commonly used methods of money transfer. (Mint)

The online mode has made money transfers from one bank to another hassle-free. With just a few clicks, and some details, and the job is done. Come 1 February, users will soon be able to transfer money through IMPS by just adding the receiver's mobile number and bank account name. According to the National Payments Corporation of India (NPCI), there is no need to add a beneficiary, and the IFSC code is also not needed.

“All the Members are hereby requested to take note of the same and comply for initiating and accepting fund transfer through Mobile number + Bank name on all IMPS channels by 31st January 2024," said NPCI circular dated October 31, 2023.

Remitter banks are directed to maintain a mapping of Member Bank Names with default MMID and undertake necessary UI/UX enhancements to facilitate beneficiary validation and financial transactions using Mobile Number + Bank Name. Banks shall also give the option to add a successfully validated mobile number and bank name combination as Payee/Beneficiary on Mobile Banking and Internet Banking channels, the circular said.

Immediate Payment Service (IMPS)

Immediate Payment Service (IMPS) is one of the most commonly used methods of money transfer. It is an important payment system providing a 24x7 instant domestic funds transfer facility and is accessible through various channels like Internet banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS.

How do IMPS process transactions currently?

Currently, IMPS processes transactions through P2A (Account + IFSC) or 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 using a Mobile Number and Bank Name.

For multiple accounts linked against mobile number

According to the NPCI circular, for multiple accounts linked against the mobile number, the Beneficiary bank shall credit to the primary/default account. The primary/default account shall be identified using the customer's consent. In case customer consent is not provided, the bank shall decline the transaction.

How much money can you send? 

According to various media reports, up to 5 lakh can be transferred through simplified IMPS without adding a beneficiary

How to transfer money through IMPS?

-Open your mobile banking app

On the main page, click on the option called ‘Fund Transfer’

-Choose ‘IMPS’ as the method to transfer funds

-Enter the beneficiary’s MMID (Mobile Money Identifier) and your MPIN (Mobile Personal Identification Number)

-Enter the amount you want to transfer

-After keying in details, click on ‘Confirm’ to proceed

-You may receive an OTP (One-Time Password) on your registered mobile number to authenticate the transaction

-Enter the OTP, and complete the transaction successfully.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 29 Jan 2024, 01:47 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App