The process of transferring money through the Immediate Payment Service (IMPS) will become much easier as all it would require is just a mobile number and bank account name.
With effect from February 1, 2024, customers can transfer up to Rs 5 lakh between bank accounts without adding beneficiary details and an IFSC code to initiate a transaction using the IMPS.
As per the National Payments Corporation of India (NPCI) circular, dated October 31, 2023, all members are required to comply with the directive for initiating and accepting fund transfers through mobile number plus bank name on all IMPS channels by January 31, 2024.
This way, users will be able to transfer up to Rs 5 lakh using IMPS without inputting recipient details, including mobile numbers, bank account names, account numbers, or IFSC codes.
Over the years, IMPS has emerged as one of the most popular money transfer methods. It is a crucial payment system that allows 24×7 instant domestic funds, which is accessible through different channels, including mobile banking apps, bank branches, ATMs, SMS and Interactive Voice Response System (IVRS).
It allows real-time fund transfers with a deferred net settlement between banks, thereby ensuring accuracy as well as speed.
The recent development is set to eliminate the need for users to key in beneficiary details during transactions. For users, it will be possible to execute fund transfers in a simplified manner that necessitates entering the recipient’s mobile number and bank name.
Here’s the lowdown on steps that a user can follow to transfer money through the IMPS:
Step 1: Open the mobile banking app.
Step 2: Check the ‘Fund Transfer’ section.
Step 3: Choose ‘IMPS’ as the method for fund transfer.
Step 4: Enter the recipient’s mobile number and select the beneficiary bank name (no need to enter an account number or IFSC details).
Step 5: Mention the amount you wish to transfer, with a limit of Rs 5 lakh.
Step 6: Click on ‘Confirm’ to proceed.
Step 7: Authenticate the transaction after entering the one-time password (OTP).
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.