New IMPS Rules 2023: Everything You Need to Know

Introduction

IMPS (Immediate Payment Service) is an instant interbank electronic fund transfer service through mobile phones. It is also being extended through other channels such as ATM, Internet Banking, etc. IMPS is a 24/7×365 service that allows customers to transfer money to any beneficiary account in India within seconds.

The National Payments Corporation of India (NPCI) has introduced new rules for IMPS transactions, effective from October 1, 2023. The new rules are designed to make IMPS transactions more convenient and secure for users.

Key changes

The following are the key changes introduced in the new IMPS rules:

• Simplified money transfer: Customers can now transfer money to a beneficiary using just their mobile number and the beneficiary bank name. This eliminates the need to add the beneficiary in advance or to know their account number and IFSC code.
• Real-time beneficiary validation: Before authorizing a transaction, the beneficiary’s details will be validated in real time. This will help to reduce the risk of incorrect transfers.
• Increased transaction limit: The per-day transaction limit for IMPS has been increased from ₹2 lakh to ₹5 lakh. This will make it easier for customers to make high-value payments using IMPS.

Benefits of the new IMPS rules

The new IMPS rules offer a number of benefits to users, including:

• Convenience: Customers can now transfer money to a beneficiary using just their mobile number and the beneficiary bank name. This is much more convenient than the previous system, which required customers to add the beneficiary in advance or to know their account number and IFSC code.
• Security: The new real-time beneficiary validation feature will help to reduce the risk of incorrect transfers. This is because the beneficiary’s details will be validated in real time before the transaction is authorized.
• Flexibility: The increased transaction limit of ₹5 lakh will make it easier for customers to make high-value payments using IMPS. This is particularly beneficial for businesses and individuals who need to make quick and easy payments to vendors or suppliers.

How to use the new IMPS features

To use the new simplified money transfer feature, customers will need to select the “IMPS Mobile Number + Bank Name” option on their bank’s mobile banking app or website. They will then need to enter the beneficiary’s mobile number and select the beneficiary bank name from a list of banks.

To use the real-time beneficiary validation feature, customers will need to ensure that their bank’s mobile banking app or website is up to date. Once they have entered the beneficiary’s details, the app or website will validate the details in real time and display a confirmation message.

Conclusion

The new IMPS rules are a welcome change that will make IMPS transactions even more convenient and secure for users. The simplified money transfer feature and the real-time beneficiary validation feature will make it easier and safer for customers to transfer money to beneficiaries. The increased transaction limit of ₹5 lakh will also make IMPS a more viable option for high-value payments.

FAQs

Q: What is the new transaction limit for IMPS?

A: The new transaction limit for IMPS is ₹5 lakh per day.

Q: How can I use the new simplified money transfer feature?

A: To use the new simplified money transfer feature, select the “IMPS Mobile Number + Bank Name” option on your bank’s mobile banking app or website. Then, enter the beneficiary’s mobile number and select the beneficiary bank name from a list of banks.

Q: How can I use the real-time beneficiary validation feature?

A: To use the real-time beneficiary validation feature, ensure that your bank’s mobile banking app or website is up to date. Once you have entered the beneficiary’s details, the app or website will validate the details in real time and display a confirmation message.

Q: Are there any charges for using IMPS?

A: Yes, there are minor charges for using IMPS. The charges vary from bank to bank.

Q: Is IMPS available 24/7?

A: Yes, IMPS is available 24/7×365.