New IMPS, NPS, FasTag Rules From February 1: To make money transfers between bank accounts easier and more convenient, the National Payments Corporation of India (NPCI) has introduced new changes in the method of money transfer and withdrawal through Immediate Payment Service (IMPS). New rules pertaining to National Payment Systems (NPS) and FasTag will also come into effect from February 1, 2024.  

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Let's take a look at these important changes that will impact you:

New IMPS Rule

Under the new simplified IMPS rules, payment up to Rs 5 lakh can be transferred only through the beneficiary's mobile number and name registered in the bank account. There will be no need to enter details like IFSC code, bank account number. The change had been notified by NPCI via a circular issued on October 31.

What is the Current IMPS Rule?

According to the current rule, to send a large amount of money through IMPS, one has to enter the beneficiary's name, bank account number, and IFSC code. This is a long process that will not be followed after the new rules are implemented.

New NPS Partial Withdrawal Rule

According to the new rule, NPS account holders can now withdraw only a maximum of 25 per cent of the total deposited amount. Furthermore, withdrawals will be restricted to specific situations such as children's education, wedding expenses, buying a house, starting a business, and similar circumstances.

Note: This new rule was announced by PFRDA through a notification on January 12 and will come into effect from February 1, 2024.

Fastag with NO KYC to be deactivated

Those customers who have not done KYC of Fastag by January 31, 2024, will have their Fastag deactivated from the banks from February 1, 2024, irrespective of the amount of balance left in it. Also, the deactivated or blacklisted Fastags will not be able to cross the toll plaza from February 1, NHAI said.

Note: If a customer wants to complete KYC then he/she can do it online by visiting the official website of Fastag.