New IMPS Rules Coming Into Effect Tomorrow: Check How Sending Money Will Get Simpler | Personal Finance News


New Delhi: Sending money has become much simpler with the latest changes in online banking. Gone are the days when you had to visit a bank for such transactions. Now, a few clicks on your computer or mobile device can get the job done.  The National Payments Corporation of India (NPCI) has introduced new rules that make transferring money through Immediate Payment Service (IMPS) even more user-friendly.

Now, users can transfer funds using just a mobile number and the recipient’s bank account name. No need to bother with adding beneficiaries or entering complicated IFSC codes.

The NPCI issued a circular on October 31, 2023, directing all its members to take note of these changes and comply with initiating and accepting fund transfers via mobile numbers and bank names on all IMPS channels by January 31, 2024.

How Sending Money Will Get Simpler? 

The circular also instructed remitter banks to maintain a mapping of Member Bank Names with default MMID (Mobile Money Identifier) and improve user interfaces to make it easier for users to validate beneficiaries and conduct financial transactions using mobile numbers and bank names.

Under these new rules, banks will provide options for adding a successful mobile number and bank name combination as a payee or beneficiary on both Mobile Banking and Internet Banking channels.

What Is IMPS?

IMPS, known as Immediate Payment Service, is a popular method of transferring money. It allows for 24×7 instant domestic funds transfer through various channels such as mobile banking apps, bank branches, ATMs, SMS, and IVRS.

The current IMPS payment process involves transactions through person-to-account (P2A) or person-to-person (P2P) transfer modes, using either the account number and IFSC or the mobile number and MMID. With the recent shift from ISO to XML, the process will be even more convenient, primarily relying on the mobile number and bank name.

If multiple accounts are linked to one mobile number, the NPCI circular specifies that the beneficiary bank will credit the primary/default account, identified with the customer’s consent. Without consent, transactions will be declined.

Transaction Limit

Media reports suggest that simplified IMPS allows users to transfer up to Rs 5 lakh without the need to add a beneficiary. These changes aim to make online money transfers more accessible and hassle-free for users.

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