New IMPS money transfer rules from next month: What you must know
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) 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.
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.
According to the NPCI circular, for multiple accounts linked against the mobile number,
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