Users can simply transfer money from one bank to another because of the convenience provided by online money transfers. Money can be sent electronically in a variety of ways, including the National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS), and Immediate Payment Services (IMPS), among others. IMPS is one of the most used methods of money transfer.
Users will soon be able to send up to Rs 5 lakh using IMPS simply using the receiver's mobile number and bank account name. The National Payments Corporation of India (NPCI) has simplified IMPS to make bank account transfers more convenient and error-free. To transmit money, users only need the receiver's or beneficiary's mobile number and bank account information, according to the NPCI.
Here's a more in-depth look at the new simplified IMPS:
What exactly is IMPS?
IMPS is a payment system that allows for instant domestic financial transfers 24 hours a day, seven days a week. After South Korea, South Africa, and the United Kingdom, India was the fourth country to implement it. This technology enables real-time financial transfers between the sender and the recipient, with deferred net settlement between banks. Including online banking, mobile banking apps, bank branches, ATMs, SMS, and Interactive Voice Response System, or IVRS, users can send money via IMPS via a variety of methods.
What adjustments has the NPCI proposed?
The NPCI has announced that customers will be able to transact on banking channels like mobile banking, online banking, and so on by entering only the beneficiary's telephone number and bank name. This payment process will include real-time beneficiary name checking.
How do I send money with IMPS?
- Launch the mobile banking app
- Select 'Fund Transfer' from the main screen
- Select 'IMPS' as the method to transfer funds
- Pay with a mobile number and the beneficiary bank name; no account number/IFSC is required.
-Enter the amount to be transferred up to Rs 5 lakh without including the beneficiary.
- After entering your information, click 'Confirm' to proceed. After getting the OTP, complete the transaction.
How much money can you transmit with the new streamlined IMPS?
The NPCI stated that up to Rs 5 lakh can be sent via simple IMPS without adding a beneficiary. According to the company, the "simplified IMPS fund transfer journey" can be extended to retail and corporate for mass transaction use cases.
When will the new streamlined IMPS go live?
Banks have yet to offer this new option to their consumers because it is in varied phases of implementation.
How does real-time beneficiary verification work?
Before sending money, there is currently no method to confirm in real-time whether the information belongs to the intended sender or not. The remitter will be able to cross-check the name in the bank's record and guarantee that payment is made to the appropriate recipient exclusively using the simplified IMPS real-time beneficiary validation capability. With the addition of the validation feature, the sender will be able to see the beneficiary's name before authorizing a transaction.