All about Immediate Payment Service (IMPS)
Banks have observed a revolutionary change from rigid banking to easy accessible banking. Nowadays, “Digital banking” is adopted at a rapid pace in India.
In August 2010, NPCI performed a pilot survey on the banking payment system. It included the banks like BOI, ICICI, SBI, UBI, etc. Later, the Axis Bank, YES Bank and HDFC Bank joined this group.
Note: NPCI- National Payment Corporation of India. The NPCI is an umbrella organization that operates a settlement system and retail payment in India. It is an initiative of IBI & RBI. In August 2010, NPCI launched the IMPS system to perform safe and secure payments in the retail sector across the nation.
On 22nd November 2010, a public service platform was launched by Smt. Shayamala Gopinath, DG RBI. It was Immediate Payment Service (IMPS).
This service allows customers to easily access fund transfer instantly with banks across India.
What is IMPS?
Immediate Payment Service is a real time and robust money transfer service. This service offers following things-
- 24X7X365 days availability
- Instant transfer
- Interbank money transfer
- Access on multiple channels like ATM, internet, etc.
The IMPS is not like NEFT. In IMPS, funds can be moved on holidays and even on weekdays. Its purpose is to-
- Make fund transfer convenient for citizens of India.
- Support RBI goal, that is, electronification of retail payment.
The eligible criteria for a bank to provide an IMPS facility is- “A valid prepaid or banking instrument license from RBI.”
What are the benefits of IMPS?
The benefits of IMPS are as follows-
- Safe and secure
- Cost effective
- Quick domestic fund transfer
- Multiple options to initiate transactions like IFSC, AADHAAR NO., etc.
- Accessible with ease
- Ready to use on the internet, mobile and ATM.
- Accessible for 24x7x365.
What are the features of the IMPS?
The features of the IMPS are as follows-
- Fastest and reliable way to carry out inter account money transfer.
- Work on mobile platforms and net-banking.
- Available on bank and public holidays.
- No need for a bank account number to make mobile transactions.
- Transfer limit is Rs 5 lakh per day.
What are the details required to use IMPS?
To transfer funds through IMPS, you must have one thing of the receiver. It can be-
- Bank account name, number and IFSC code.
- Mobile number & MMID.
Note: MMID stands for Mobile Money Identifier. It is a unique number with 7 digits. This number is used for interbank transfer at the time of mobile banking.
- Aadhaar card number.
What is the process for IMPS?
You can use IMPS to avail various services. The process to transfer funds through mobile banking is-
- Login your mobile banking app.
- Add a beneficiary (if not done).
- Click on send fund/money transfer button.
- Choose the IMPS option.
- Add beneficiary details, that is,
- Mobile number,
- Amount &
- MMID of beneficiary.
- Add a mobile pin to verify the transfer.
- Finally, receive bank confirmation.
The process to transfer funds through net banking is-
- Login to the bank net-banking portal.
- Add a beneficiary by entering the beneficiary details, that is,
Account type, &
- Receive bank confirmation and visit fund option option.
- Tap on beneficiary
- Enter amount & remark (optional)
- Authenticate payment
- Tap on go, & instantly money is transferred via IMPS.
How to enable the IMPS?
You are required to register for mobile banking if you want to transfer funds via IMPS.
There are some banks that provide the facility to register for mobile banking. While other banks take separate applications to activate your mobile banking.
Moreover, you can use IMPS via
- Net banking, &
- Bank branch.
If someone is sending you money through IMPS, then it will be credited directly to your bank account. You will receive a text message on your mobile regarding the same. Additionally, you can receive money instantly with MMID from your bank.
You can use MMID instead of beneficiaries Aadhaar number, bank account no. & IFSC code.
IMPS VS RTGS
RTGS fund transfers are paid in real time. It is a type of payment made for a big amount of money. In RTGS you cannot transfer money less than two lakhs. Moreover, the RTGS is not available on bank holidays.
In case of IMPS, you can transfer up to 5 lakhs at any place and time. Even the IMPS is available on bank holidays.
IMPS VS NEFT
The NEFT is the most popular way to transfer funds from one bank account to another. Clearance or settlement of funds is done in batches that happen after every 60 minutes. Anyone can use the NEFT service to transfer funds across the nation. However, the services are not in operation on bank holidays.
However, in IMPS, you can directly transfer the amount to the bank account of the beneficiaries. There is no timings or holidays for IMPS service. Even at midnight you can make transactions easily.
IMPS- Key points for customers
- Do not share your OTP with any person.
- Do not share your credit/ debit card PIN with anyone.
- Do not share your net banking login ID & password.
- Do not pass on bank SMS to any unknown number.
Recently, the RBI has applied new charges on the customers who perform IMPS transactions through branches. The charge is of Rs. 20 +GST for the amount between Rs. 2 lakh to 5 lakh. This charge is deducted with the service charge on RTGS/ NEFT transactions.