Effective February 1, 2024, the process of transferring money through the Immediate Payment Service (IMPS) is poised to become remarkably simpler, requiring only a mobile number and the recipient’s bank account name.
Under a directive from the National Payments Corporation of India (NPCI), customers can initiate transfers up to Rs 5 lakh between bank accounts via IMPS without the need to add beneficiary details or an IFSC code. All member banks are mandated to comply with this directive by January 31, 2024, as per an NPCI circular dated October 31, 2023.
This streamlined approach means users can execute transfers up to Rs 5 lakh using IMPS without entering recipient details such as mobile numbers, bank account names, account numbers, or IFSC codes.
IMPS has grown in popularity over the years as a reliable money transfer method, offering 24×7 instant domestic fund transfers accessible through various channels, including mobile banking apps, bank branches, ATMs, SMS, and Interactive Voice Response System (IVRS). It enables real-time fund transfers with deferred net settlement between banks, ensuring both accuracy and speed.
The recent development aims to simplify fund transfers by eliminating the need for users to input beneficiary details during transactions. Instead, users will only need to enter the recipient’s mobile number and bank name to execute transfers seamlessly.
Here’s a breakdown of the steps users can follow to transfer money through IMPS:
- Open the mobile banking app.
- Navigate to the ‘Fund Transfer’ section.
- Select ‘IMPS’ as the fund transfer method.
- Enter the recipient’s mobile number and choose the beneficiary bank name (no need for account number or IFSC details).
- Specify the transfer amount, with a limit of Rs 5 lakh.
- Confirm the transaction.
- Authenticate the transaction by entering the one-time password (OTP).
