IMPS remittance service extended to No Frills Account Holders

New and innovative features are being added to the IMPS Product by NPCI. The latest feature, is that No Frills account holders are now interoperable with IMPS

No Frills accounts as the name suggests are Bank accounts with minimal features. As the accounts are opened with the bare minimum documentation, the sum of credit transactions in a financial year should not exceed Rs. one lakh in "No Frills Accounts". Once the limit is crossed, the customers have to take steps to submit the documentation for a full KYC, so that the no-frills account can be converted into a normal account.

To encourage Banks to open more 'No Frills Accounts', and also to extend the reach of IMPS, NPCI has taken steps to enable IMPS facility to 'No frills accounts', too.

Union Bank of India was the first bank to link IMPS to 'No Frills accounts'.

Yes, MMID is compulsory even for No Frills accounts', to avail the IMPS facility. The agents of Corporate Business Correspondent I.e FINO, will facilitate the process of obtaining MMID by account holders.

Top 5 Benefits of this facility:

1. Customers need not opt for mobile banking services.
2. The funds transfer is instant, as the IMPS works 24*7, 365 days a year.
3. No additional infrastructure is required by the Banks nor the account holders.
4. Reach or last mile connectivity issues are resolved, as Mobiles have penetrated almost every nook and corner of the country.
5. The additional spinoff will be for the mobile companies, as the customer's stickiness to their company will increase. This is because customer's having a MMID will not prefer to shift their loyalties elsewhere.