In today’s fast-paced world, the ease of online money transfers has become an indispensable part of our financial lives. Whether it’s paying bills, sending money to a family member, or splitting a dinner tab, electronic fund transfers have made our financial transactions smoother than ever. Among the various methods available for online money transfers, Immediate Payment Services (IMPS) has emerged as a go-to choice for many. With the implementation of a new rule by the National Payments Corporation of India (NPCI), IMPS is set to become even more user-friendly and efficient.
Understanding IMPS:
IMPS, short for Immediate Payment Services, is a payment system that offers a 24×7 instant domestic funds transfer facility in India. It has gained immense popularity since its introduction, positioning India as the fourth country globally to adopt this innovative system, following South Korea, South Africa, and the United Kingdom. IMPS enables real-time funds transfer between the sender (remitter) and the recipient (beneficiary) while ensuring a deferred net settlement between banks. This means that you can transfer funds swiftly and securely, regardless of the time or day.
Streamlining IMPS for Greater Convenience:
The recent changes proposed by the National Payments Corporation of India (NPCI) are set to enhance the IMPS experience. Users can now perform transactions using just the recipient’s mobile number and bank name on various banking channels, including mobile banking and Internet banking. The introduction of this new payment method is complemented by real-time beneficiary name validation, adding an extra layer of security and convenience to your transfers.
How to Make IMPS Transfers:
Transferring money through IMPS has become more straightforward with the new rule in place:
- Open your mobile banking app.
- Navigate to the ‘Fund Transfer’ section.
- Choose ‘IMPS‘ as your preferred method for transferring funds.
- Input the recipient’s mobile number and select their bank name, eliminating the need for an account number or IFSC code.
- Specify the amount you wish to transfer (up to Rs 5 lakh) without having to add the beneficiary in advance.
- After entering the details, click ‘Confirm’ to proceed.
- Complete the transaction by entering the OTP received on your mobile.
The Enhanced Transaction Limit:
With the simplified IMPS, users can now transfer up to Rs 5 lakh without the requirement of adding a beneficiary in advance. This streamlined process is not limited to retail customers but is also available for corporate clients, making it suitable for bulk transactions.
When to Expect the New IMPS:
As of now, banks are in various stages of implementing this new feature for their customers. While the NPCI has set the guidelines, it’s essential to check with your respective bank to find out when the simplified IMPS will be available for your use.
Real-time Beneficiary Validation:
One of the most significant advantages of the new IMPS rule is the introduction of real-time beneficiary validation. Previously, there was no efficient way to verify whether the recipient details belonged to the intended recipient. With this new feature, the remitter can cross-check the beneficiary’s name in the bank’s records to ensure that the payment is directed to the correct person. This validation feature allows senders to view the beneficiary’s name before authorizing the transaction, adding an additional layer of security and peace of mind to the process.
In conclusion, the new IMPS rule is set to revolutionize the way we transfer money online. With its increased transaction limits, simplified process, and real-time beneficiary validation, users can expect a safer and more efficient experience when sending money to friends, family, or businesses. Keep an eye on your bank’s updates to be among the first to enjoy the benefits of this enhanced IMPS system.
