New IMPS money transfer rule: NPCI circular dated October 31, 2023 states that all members are requested to take note and comply with the mandate to initiate and accept fund transfers through mobile number + bank name on all IMPS channels by January 31, 2024 .
New rules for transferring money through IMPS are going to be implemented from the beginning of next month i.e. from 1st February 2024. From this date, users will be able to transfer money through IMPS by just adding the recipient’s mobile number and bank account name. According to National Payments Corporation of India (NPCI), there is no need to add a beneficiary in this. According to Livemint news, IFSC code is also not required. Online mode has made money transfer from one bank to another hassle free.
NPCI had issued circular
According to the news, the NPCI circular dated October 31, 2023 states that all members are requested to take note of this and start and accept fund transfers through mobile number + bank name on all IMPS channels by January 31, 2024. Comply with. Banks will also provide the option to successfully add valid mobile number and bank name combination as payee/beneficiary on mobile banking and internet banking channels, the circular said.
IMPS
In online money transfer, a large number of fund transfers are done through IMPS. It is a vital payment system that provides 24×7 instant domestic money transfer facility and is accessible through various channels like Internet Banking, Mobile Banking App, Bank Branches, ATM, SMS and IVRS. Currently IMPS processes transactions through P2A (Account + IFSC) or P2P (Mobile Number + MMID) transfer mode.
For multiple accounts linked to mobile number
As per NPCI circular, for multiple accounts linked to a mobile number, the beneficiary bank will credit the primary/default account. The primary/default account will be identified using customer consent. If the customer’s consent is not provided, the bank will decline the transaction.
