Upcoming changes to IMPS money transfer rules

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Upcoming changes to IMPS money transfer rules
  • By Ankita Pal
  • 30th January, 2024
  • Banking

Streamlining Fund Transfers: The Evolution of IMPS

Introduction The advent of online transactions has revolutionized the way we transfer money between banks. In this section, we delve into the intricacies of the Immediate Payment Service (IMPS) and its role in facilitating seamless fund transfers.

The Convenience of IMPS IMPS has emerged as a game-changer in the realm of digital banking, offering users the convenience of transferring funds with unparalleled ease. By simply inputting the recipient’s mobile number and bank account name, users can execute transactions swiftly and securely.

NPCI’s Vision for IMPS The National Payments Corporation of India (NPCI) has envisioned a future where fund transfers are devoid of cumbersome processes like adding beneficiaries or remembering IFSC codes. The circular dated October 31, 2023, serves as a clarion call for all members to adopt the Mobile number + Bank name protocol, thereby streamlining the transfer process.

Enhancing User Experience Banks play a pivotal role in ensuring a seamless user experience. By mapping Member Bank Names with default MMID and enhancing UI/UX interfaces, banks can expedite beneficiary validation and financial transactions. Additionally, the provision to add validated combinations as Payee/Beneficiary on Mobile and Internet Banking platforms enhances user convenience.

Deciphering IMPS IMPS stands as a beacon of reliability in the digital payment landscape, offering a 24×7 instant domestic funds transfer facility. Accessible through a myriad of channels including Internet banking, mobile apps, ATMs, and SMS, IMPS caters to the diverse needs of users seeking swift and secure transactions.

The Transition to a New Paradigm With the transition from ISO to XML, IMPS is poised to undergo a transformative journey. The migration heralds a new era where transactions are executed seamlessly using Mobile Number and Bank Name, ushering in a wave of efficiency and accessibility.

Managing Multiple Accounts In a digital ecosystem where users often have multiple accounts linked to a single mobile number, the NPCI circular mandates clarity in crediting funds to the primary/default account. Failure to obtain customer consent warrants the declination of transactions, ensuring security and transparency.

Empowering Users with Transfer Limits Reports indicate that IMPS allows users to transfer up to ₹5 lakh without the hassle of adding beneficiaries, underscoring its utility in facilitating large transactions with ease.

Mastering the IMPS Workflow For users seeking to harness the power of IMPS, a step-by-step guide ensures seamless execution of transactions:

  1. Open your mobile banking app.
  2. Navigate to the ‘Fund Transfer’ option.
  3. Select ‘IMPS’ as the preferred transfer method.
  4. Input the beneficiary’s MMID and your MPIN.
  5. Specify the transfer amount.
  6. Confirm the transaction to initiate the transfer.
  7. Authenticate the transaction by entering the OTP received on your registered mobile number.

Conclusion In conclusion, IMPS stands as a testament to the transformative power of digital innovation in the realm of banking and finance. With its user-centric approach and commitment to efficiency, IMPS continues to redefine the landscape of fund transfers, empowering users to transact with confidence and ease in an increasingly connected world.

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