Beginning the following month, a new rule regarding IMPS money transfers will be implemented. The use of the online mode has made the process of transferring money from one bank to another more simpler. The task can be completed with just a few clicks and a few details that are provided.
Beginning on February 1st, customers will soon be able to send money over IMPS by just providing the cellphone number and bank account name of the recipient (the recipient’s address). It has been stated by the National Payments Corporation of India (NPCI) that the addition of a beneficiary is not required, and the IFSC number is also not required.
According to a circular issued by the National Payments Corporation of India (NPCI) on October 31, 2023, “All 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 the beginning of the year 2024.”
For the purpose of facilitating beneficiary validation and financial transactions utilising Mobile Number + Bank Name, remitter banks are instructed to keep a mapping of Member Bank Names with default MMID and to conduct any necessary UI/UX upgrades.
In addition, according to the circular, financial institutions are required to provide customers with the opportunity to add a cell number and bank name combination that has been successfully validated as Payee/Beneficiary on cell Banking and Internet Banking channels.
About IMPS Money Transfer
IMPS, or Immediate Payment Service, is a popular way to transfer money instantly within India. It’s a real-time interbank electronic fund transfer system that allows you to send and receive money 24/7, through various channels like:
- Mobile banking: Most banks offer IMPS money transfers through their mobile banking apps. You’ll need the beneficiary’s mobile number and MMID (a 7-digit code they provide).
- Internet banking: You can initiate IMPS money transfers through your bank’s online portal, using similar details as in mobile banking.
- ATMs: Some ATMs allow IMPS money transfers. You’ll need your ATM card and the beneficiary’s details.
- SMS banking: Some banks offer IMPS money transfers via SMS. This option may have limited functionality compared to other channels.
Here are some key benefits of using IMPS:
- Immediate: Funds are transferred to the beneficiary’s account in real-time, unlike NEFT transfers which have specific settlement timings.
- 24/7 availability: You can send and receive money anytime, any day of the year, even on holidays.
- Convenient: Initiating an IMPS transfer is relatively simple and requires minimal information.
- Cost-effective: IMPS charges are generally lower than other fund transfer methods like RTGS.
However, there are also some limitations to keep in mind:
- Transaction limit: The maximum amount you can transfer through IMPS per transaction is INR 2 lakhs.
- Bank participation: Not all banks offer IMPS services. Ensure both your and the recipient’s bank participate in IMPS before initiating a transfer.
- Security: While IMPS uses secure protocols, it’s crucial to be cautious about sharing your banking information and MMID.
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