In a bid to enhance the efficiency and convenience of financial transactions, the National Payments Corporation of India (NPCI) is implementing significant changes in Immediate Payment Service (IMPS), National Payment Systems (NPS), and FasTag rules, effective February 1, 2024. Here’s a comprehensive overview of the alterations and how they may impact your financial activities.
New IMPS Rule: Simplifying Money Transfers
Under the revamped IMPS rules, money transfers up to Rs 5 lakh can be seamlessly executed using only the beneficiary’s registered mobile number and name. The need for entering details like IFSC code and bank account number is eliminated, streamlining the process. This change aims to simplify and expedite the money transfer experience.
Previous IMPS Rule: Until now, transferring significant amounts via IMPS required entering the beneficiary’s name, bank account number, and IFSC code, making the process more cumbersome.
New NPS Partial Withdrawal Rule: Limited Access to Funds
Effective February 1, 2024, NPS account holders can withdraw a maximum of 25% of the total deposited amount. Withdrawals will be confined to specific situations, including children’s education, wedding expenses, home purchase, starting a business, and similar circumstances. This alteration ensures a more controlled approach to partial withdrawals from NPS accounts.
Previous NPS Rule: The previous rules did not impose a specific cap on the percentage of total deposits that could be withdrawn, providing more flexibility to account holders.
FasTag Deactivation for Non-KYC Customers: Act Now!
Customers who haven’t completed the Know Your Customer (KYC) process for their FasTags by January 31, 2024, will face deactivation from February 1, regardless of the remaining balance. Deactivated or blacklisted FasTags will not be permitted to cross toll plazas from the specified date. It is advised for customers to complete the KYC process promptly to avoid disruption.
Note: KYC for FasTag can be completed online by visiting the official website before the deadline.
