IMPS New Money Transfer Rule: Soon send up to Rs 5 lakh without adding beneficiary

With the emergence of the 'Digital India' initiative, online transactions have gained popularity across the nation, revolutionising the way people transfer funds. No longer do individuals have to endure long, frustrating lines at bank branches to move money from one account to another.

This shift towards digital financial services has introduced many channels for swift and convenient money transfers, and one of the prominent options is the Immediate Payment Service (IMPS).

In an initiative aimed at simplifying and enhancing the efficiency of bank account transfers, the National Payments Corporation of India (NPCI) is looking forward to enabling seamless fund transfers of up to Rs 5 lakh without the necessity of adding a beneficiary. The revised IMPS will help users perform secure and efficient bank transfers using only the recipient's mobile number and the bank account name, ensuring a hassle-free experience. This change in the IMPS system aims to enhance the ease and accuracy of financial transactions.
 
What is IMPS?

IMPS, which stands for Immediate Payment Service, is an offering provided by the NPCI. It serves as a seamless money transfer solution that enables customers to send and receive payments from their savings accounts in real time. This service can be accessed through mobile banking and internet banking, making it accessible to a wide range of users.
 
IMPS: Accessibility

One of the standout features of IMPS is its round-the-clock accessibility. Available 24 hours a day, 365 days a year, IMPS ensures that users can carry out transactions whenever they need to, even during the oddest hours.
 
IMPS: Uninterrupted Service During Bank Holidays

Unlike traditional bank branches, which remain closed on public and gazetted holidays, IMPS remains operational without any interruptions. This means that, even during bank holidays, your funds will seamlessly reach their intended destination, offering unparalleled convenience and flexibility to users.
 
IMPS: Transfer Charges

The charges associated with using IMPS are dependent on the amount being transferred. The fee ranges from as low as Rs 2.5 to a maximum of Rs 25. These charges are applied to transactions ranging from Rs 10,000 to Rs 5 lakh, ensuring that IMPS remains an affordable option for a wide spectrum of users.
 
IMPS: Eligibility Criteria

To take advantage of the IMPS facility, individuals must hold a savings account with active mobile banking capabilities. This requirement makes IMPS accessible to a significant portion of the population, further supporting the 'Digital India' initiative's goal of financial inclusion and accessibility.
 
In the age of 'Digital India,' IMPS is proving to be an invaluable tool for swiftly transferring funds, offering accessibility and convenience that aligns with the nation's vision of a digitally empowered society.