Users will soon be able to transfer money up to ₹5 lakh through Immediate Payment Service (IMPS) just by using the mobile number and bank account name of the receiver, reported news publication The Economic Times. The simplified procedure will eliminate the hassle of filling in the beneficiary account number and the Indian Financial System Code (IFSC).
IMPS is a real-time payment service that is available round the clock. This service is offered by the National Payments Corporation of India (NPCI) that empowers customers to transfer money instantly through banks and RBI-authorised Prepaid Payment Instrument Issuers (PPI) across India.
Under IMPS, there are two types of payments:
1. Person-to-account payment, which requires the recipient’s bank account number, bank name, and IFSC code.
2. Person-to-person payment, which uses the recipient’s mobile number and a mobile money identifier (MMID). MMID is a unique seven-digit number issued by banks for mobile banking access.
While the second method needs fewer details, the sender and receiver need MMIDs for this. Thus, this approach has been less popular because of the requirement to know the recipient’s MMID.
The simplified IMPS is essentially a more straightforward version of person-to-person IMPS payments, the reports add.
When sending money, the sender now selects the recipient’s mobile number and bank name from the list of enabled banks instead of entering the unique MMID. The upper limit for simplified IMPS transfers is ₹5 lakh without requiring the addition of a beneficiary. However, the specific upper limit varies from one bank to another based on their policies. Banks are yet to implement this new feature.
Furthermore, IMPS real-time beneficiary validation will be introduced. This feature will enable remitters to cross-check the recipient’s name in the bank’s records to ensure payments are directed to the correct beneficiary.
How to enable IMPS for transactions?
1. Mobile Banking Registration: If you plan to initiate transactions through the mobile channel, you must first complete the Mobile Banking Registration. This registration is not required for transactions conducted through internet banking, ATMs, or at a physical bank branch.
1. Obtain MMID: If you are the recipient, collect your Mobile Money Identifier (MMID) from your bank. You will need to share this MMID with the sender for transactions in the current setup. Alternatively, you can provide your account number and IFSC code to receive money.
2. SMS Alerts: You can register your mobile number to receive SMS alerts for your transactions to stay updated on your IMPS transactions.