No Need To Add Beneficiary Details For IMPS Transactions Up To Rs 5 Lakh; New Rule From February 1, 2024!

From February 1, 2024, transferring up to Rs 5 lakh will become easier via IMPS as there will be no need to add beneficiary details. This is because the NPCI has decided to envisage a convenient customer journey through IMPS which shall be carried out using a Mobile Number and Bank Name. This method is called MMID for mobile banking.

At present, IMPS transactions are processed through P2A (Account + IFSC Code) Or P2P (Mobile Number + MMID) modes.

However, NPCI in its circular dated October 31, said, "Mobile Number + Bank Name" based transactions shall be carried out on existing railroad using Mobile Number + Default MMID combination.

The New Rule In IMPS:

According to NPCI, remitter banks are required to maintain a mapping of Member Bank Names with default MMID (NBIN + 000) and undertake necessary UI/UX enhancements to facilitate beneficiary validation and financial transactions using Mobile Number + Bank Name.

Also, banks should give the option to add a successfully validated mobile number and bank name combination as 'PAYEE/Beneficiary' on mobile banking and Internet banking channels.

Further, remitter banks have to mandatorily provide a Beneficiary validation facility to customers before initiating a financial transaction.

Moreover, Beneficiary Banks need to accept Bank Name (default MMID) based transactions and validation requests and process payments to the Beneficiary account for the same. On multiple-linked against the mobile number, the Beneficiary bank shall credit to the primary/default account. The primary/default account shall be identified using the customer's consent. In case, customer consent is not provided, the bank shall decline the transaction.

Thereby, NPCI has asked all the members to comply with initiating and accepting fund transfers through 'Mobile Number + Bank Name' on all IMPS channels by January 31, 2024.

What Is IMPS?

IMPS provides robust & real-time fund transfer which offers an instant, 24X7, interbank electronic fund transfer service that can be accessed on multiple channels like Mobile, Internet, Branch, ATM and SMS. IMPS is an emphatic service which allows transferring of funds instantly within banks across India which is not only safe but also economical. Currently, on IMPS, 827 members are live which includes banks & PPIs.

Eligibility & Limit In IMPS:

The eligible criteria for the Banks who can participate in IMPS is that the entity should have a valid banking or prepaid payment instrument license from the Reserve Bank of India to participate in IMPS.

The per transaction limit on IMPS is Rs. 5 lakh (for all channels except SMS and IVR). For more details, pls contact your bank

Pre-Requisites for Mobile Banking through IMPS

Registration for Remitter:

- Register yourself with the mobile banking service of the bank.

- Get a Mobile Money Identifier (MMID) and MPIN from the bank

- Download Software (Application) for mobile banking (ensure the compatibility of mobile with the application) or use the SMS facility in your mobile if your bank provides IMPS on SMS

Registration for Beneficiary:

- Link your mobile number to the account in the respective bank.

- Get a Mobile Money Identifier (MMID) from the bank

What Is MMID?

Mobile Money Identifier is a 7-digit number, issued by banks. MMID is one of the inputs which when clubbed with a mobile number facilitates fund transfer. Combination of Mobile no. & MMID is uniquely linked with an Account number and helps in identifying the beneficiary details. Different MMIDs can be linked to the same Mobile Number. (Please contact your bank to get the MMID issued)

Presently, IMPS Person-to-Person (P2P) funds transfer requires the Remitter customer to make a funds transfer using the Beneficiary Mobile Number and MMID. Both the Remitter as well as Beneficiary need to register their mobile number with their respective bank account and get MMID, to send or receive funds using IMPS.