Updated January 30th, 2024 at 10:34 IST

New IMPS rule: No beneficiary or IFSC needed for fund transfers starting Feb 1

NPCI, in their circular, has announced that users can now transfer funds via IMPS by simply providing the recipient's mobile number and bank account name.

Reported by: Business Desk
IMPS | Image:Shutterstock

Beneficiary-free transactions: Users will be able to conduct IMPS money transfers without the hassle of adding a beneficiary or IFSC code starting from February 1. The National Payments Corporation of India (NPCI) has announced, through their circular, that users can transfer funds via IMPS by simply providing the receiver's mobile number and bank account name.

Remitter banks are instructed to establish a mapping of Member Bank Names with default MMID and make necessary UI/UX enhancements for beneficiary validation and financial transactions using Mobile Number + Bank Name. Additionally, banks are required to offer the option to add a successfully validated mobile number and bank name combination as Payee/Beneficiary on Mobile Banking and Internet Banking channels.

IMPS, a widely used method of money transfer, operates as a 24x7 instant domestic funds transfer facility accessible through various channels such as Internet banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS. The current process involves transactions through P2A (Account + IFSC) or P2P (Mobile Number + MMID) transfer modes. With the migration of IMPS from ISO to XML, the updated process involves using a Mobile Number and Bank Name for a more convenient customer journey.

For accounts linked to a mobile number, the beneficiary bank is directed to credit the primary/default account, identified with the customer's consent. If customer consent is not provided, the bank is required to decline the transaction.

Media reports suggest that up to Rs 5 lakh can be transferred through the simplified IMPS without the need to add a beneficiary.


To initiate an IMPS transfer, users can follow these steps:

  1. Open the mobile banking app.
  2. Click on the 'Fund Transfer' option on the main page.
  3. Choose 'IMPS' as the method for fund transfer.
  4. Enter the beneficiary’s MMID (Mobile Money Identifier) and your MPIN (Mobile Personal Identification Number).
  5. Specify the amount to be transferred.
  6. Click 'Confirm' to proceed.
  7. Authenticate the transaction by entering the OTP (One-Time Password) received on the registered mobile number.
  8. Complete the transaction successfully.

Published January 30th, 2024 at 10:34 IST