New IMPS fund transfer rules: Here is all you need to know
The National Payments Corporation of India (NPCI) released a circular dated October 31, 2023, to inform that NPCI has changed some rules regarding the transfer of Immediate Payment Service (IMPS) funds, which will be applicable from February 1, 2024. Here is all you need to know about the new IMPS fund transfer rules.
New IMPS fund transfer rules: Here is all you need to know
What is IMPS?
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IMPS referred to Immediate Payment System, was launched in 2010.
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It is an instant payment mode, which is different from existing RTGS and NEFT.
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In August 2010, the NPCI conducted a pilot study on the mobile payment system with the banks like State Bank of India (SBI), Bank of India (BOI), Union Bank of India (UBI), and ICICI Bank.
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Later, Yes Bank joined this project in September 2010, Axis Bank in October 2010, and November 2010.
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After rigorous study, this project named IMPS, was made available to the Indian public on November 22, 2010, by Shyamala Gopinath, DG RBI at Mumbai.
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It is a robust & real-time fund transfer.
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It offers an instant, 24X7, interbank electronic fund transfer service that can be accessed on multiple channels like the Internet, Mobile, Branch, SMS, and ATM.
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This payment mode is safe and economical.
Eligibility for the Bank:
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The banks, that want to participate in IMPS, must have a valid banking or prepaid payment instrument license from the Reserve Bank of India to participate in IMPS.
Objectives of IMPS:
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Simple payment mode: IMPS has made the payment simpler just with the mobile number of the beneficiary.
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Mobile as a channel: With this, the NPCI enabled bank customers to use mobile instruments as a channel for accessing their bank accounts and remitting funds
Participants for IMPS:
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The participants for IMPS are as follows:
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Sender (Remitter)
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Receiver (Beneficiary)
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Banks
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How does IMPS payment currently work?
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Immediate Payment Service (IMPS) processes transactions through person-to-person P2P (Mobile Number + MMID) or person-to-account P2A (Account + IFSC) transfer modes.
What if multiple accounts are linked with one mobile number?
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If multiple accounts are linked with a mobile number, the beneficiary bank shall credit to the primary/default account.
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The primary/default account shall be identified using the customer's consent.
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The transactions will be declined without consent.
New IMPS fund transfer rules:
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As per the NPCI circular, dated October 31, 2023, all members are required to comply with the directive for initiating and accepting fund transfers via mobile number + bank name on all IMPS channels by January 31, 2024.
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Customers will likely be able to transfer up to ₹5 lakh between bank accounts without adding beneficiary details using the IMPS, effective February 1, 2024.
FAQs:
1. IMPS was launched in which year?
Ans: 2010
2. IMPS was launched by which organization?
Ans: NPCI
3. A customer will be able to transfer Rs 5 lakhs from _______.
Ans: From February 1, 2024, a customer will be able to transfer Rs 5 lakhs.
4. What is the fullform of IMPS?
Ans: IMPS referred to as Immediate Payment System, was launched in 2010.
