Soon, you can transfer up to ₹5 lakh using IMPS. Here's how it works - Hindustan Times

Soon, you can transfer up to 5 lakh using IMPS. Here's how it works

Oct 17, 2023 11:13 PM IST

Simplified IMPS eliminates need for beneficiary account number and IFSC code

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 24*7.(NPCI)
IMPS is a real-time payment service that is available 24*7.(NPCI)

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.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

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.

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live, Jio Financial Services Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
Share this article

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

Story Saved
Live Score
Saved Articles
My Reads
Sign out
New Delhi 0C
Monday, April 22, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On