A big improvement is coming to India’s Immediate Payment Service (IMPS) on February 1st, making money transfers between bank accounts will be much easier now. A new regulation from the National Payments Corporation of India (NPCI) permits users to transfer up to Rs 5 lakh without providing recipient information such as account numbers or IFSC codes.
Users can start a transaction using the recipient’s mobile number and bank’s name under the new, streamlined IMPS regulations. This simplifies the procedure, speeds it up, and lowers the possibility of mistakes while inputting beneficiary details. To further reduce the possibility of wrong transfers, real-time beneficiary verification will be carried out before the authorization of the transaction.
Remitter banks are expected to maintain a mapping of member bank names with default MMIDs (Mobile Money Identification Numbers) and make the appropriate UI/UX changes to enable this new fund transfer mode.
The upgraded system is intended to be user-friendly. All members were required by the NPCI circular of October 31, 2023, to adhere to these adjustments by January 31. The IMPS service, which is well-known for its round-the-clock accessibility and rapid cash transfer capabilities, is still essential to changing India’s financial environment.
Steps To Use The Streamline IMPS Feature
- Step 1: Open the banking app on your phone.
- Step 2: Click the ‘Fund Transfer’ section.
- Step 3: Select “IMPS” as your favoured fund transfer option.
- Step 4: Enter the beneficiary’s bank name after providing the recipient’s mobile number. Notably, no account number or IFSC is needed.
- Step 5: Mention your desired transfer amount, up to a maximum of Rs 5 lakh.
- Step 6: Click “Confirm” after providing the required information.
- Step 7: After receiving the one-time password (OTP), proceed with the transaction.
