IMPS provides strong & real-time fund transfer which offers an instant, 24X7, interbank electronic fund transfer service that could be accessed on multiple channels like Mobile, Internet, ATM, and SMS. IMPS is an emphatic service that allows transferring of funds instantly within banks across India which is not only safe but also cheap.
As we know, For transferring funds in real-time and 24X7X365 interbank was a major challenge faced in the banking industry. Only NEFT & RTGS were available to users for fund transfer during banking hours.
With the above context in mind, NPCI conducted a pilot study on the mobile payment system with the banks like SBI, BOI, UBI, and ICICI in August 2010. Also, the banks like Yes Bank, Axis, and HDFC bank joined this league in the month of September, October, and November 2010 respectively. Immediate Payment Service (IMPS) public launch happened on 22nd November 2010 by Smt. Shyamala Gopinath, DG RBI at Mumbai, and this service are now available to the Indian public.
Contents of this post
What is the full form of IMPS?
IMPS full form is Immediate Payment Service.
Immediate Payment Service is an instant interbank electronic fund transfer service through mobile phones. It is also being enlarged through other channels such as ATMs, Internet Banking, etc.
What is the meaning of IMPS?
IMPS is an electronic fund transfer service that is instant and real-time available 24*7*365. And IMPS provides strong & real-time fund transfer which offers an instant, 24X7, interbank electronic fund transfer service that could be accessed on multiple channels like Mobile, Internet, ATM, SMS. IMPS is an energetic service that allows transferring of funds instantly within banks across India which is not only safe but also cheap.
What is Immediate Payment Service?
Immediate Payment Service is an innovative real-time payment service that is available 24*7. This service is offered by the National Payments Corporation of India (NPCI) that empowers customers to transfer money instantly through banks and RBI-authorized Prepaid Payment Instrument Issuers (PPI) across India.
What are the objectives of IMPS?
These are the objectives-
- To enable bank customers to use mobile instruments as a channel for accessing their bank accounts and remitting funds
- It can be used for making payment simpler just with the mobile number of the beneficiary.
- To sub-serve the goal of the Reserve Bank of India (RBI) in the electronification of retail payments
- To facilitate mobile payment systems already introduced in India with the Reserve Bank of India Mobile Payment Guidelines 2008 to be inter-operable across banks and mobile operators in a safe and secure manner
- And to build the foundation for a full range of mobile-based Banking services.
Who will be a participant in the IMPS-fund transfer?
These are the Participants for the fund transfer-
- Remitter (Sender)
- Beneficiary (Receiver)
- National Financial Switch – NPCI.
What are the benefits of IMPS?
These are the benefits of IMPS-
- Available 24 x7 (functional even on holidays)
- Instant transfer
- Safe and secure,
- Easily accessible and cost-effective
- Channel Independent can be initiated from Mobile/ Internet / ATM channels
- Debit & Credit Confirmation by SMS
What is the limit for IMPS?
A user can transfer up to Rs 5 lakh using the |MPS payment method in a day. This limit has been revised by RBI from 2 lac to 5 lac. Earlier the limit was 2 lac only. So if you want to transfer an amount up to 5 lac instantly then you can use IMPS. And on the other hand, if you want to transfer more than 5 lac then you should use RTGS OR NEFT.
What is the difference between IMPS & NEFT?
|Full form||National electronic fund transfer||Immediate Payment Service|
|Payment option available||online and offline both||online only|
|Min. transfer value||1 Rs||1 Rs|
|max transfer value||No limit||5 lac Rs|
|Timing||8 am to 7 pm on all working days||24/7 and 365 days|
|Inward transaction charges||No charge||Depends on the bank’s norms and decision|
What is the difference between IMPS & RTGS?
|Full form||Real-time gross settlement||Immediate Payment Service|
|Payment option available||online and offline both||online only|
|Min. transfer value||2 lac Rs||1 Rs|
|max transfer value||No Limit||5 lac Rs|
|Timing||8 am to 6 pm||24/7 and 365 days|
|Inward transaction charges||No charge||Depends on the bank’s norms and decision|
What are the IMPS Charges?
The charges of IMPS are as follows-
|(Subject to Change According to Banks)|
|Up to Rs. 10,000||Rs. 2.50 + Applicable GST|
|From Rs. 10,000 to Rs. 1 lakh||Rs. 5 + Applicable GST|
|From Rs. 1 lakh to Rs. 2 lakh||Rs. 15 + Applicable GST|
|Rs. 2 lakh and Above||Rs. 25 + Applicable GST or No Charge|
Some banks do not charge for IMPS and some banks have different charges. So check the list of charges of your bank if you want to know the exact charges.
What are services available in IMPS?
- Sending money
- Receiving money
- Beneficiary Account check functionality
- Transaction status check functionality
- Foreign Inward Remittance
What are the features of IMPS?
Here is the list of IMPS features-
- Availability: IMPS is available 24/7 and 365 days enabling users to transfer funds anytime and from anywhere. You do not have to go to the bank and follow an elaborate process for making payments to your clients or transferring funds. The service functions seamlessly throughout the year even on public holidays and bank holidays.
- Confirmations: Both the sender and receiver get instant credit and debit notifications as soon as the funds are transferred. This means that you do not have to worry whether the funds are transferred or not. The service takes care of its processes very well.
- Instant Fund Transfer: As the IMPS full form suggests, fund transfer through IMPS is simple and instant. The service uses mobile phones as a channel for accessing bank accounts and performs inter-bank fund transfers in a secure way.
- Versatility: Versatility is the main feature of IMPS as it can be used in various modes as well. Users can use IMPS for P2P (person-to-person) funds transfer using any mobile number or by using the bank account details. You can use IMPS for P2M (Person to Merchant) payments as well.
- Usability: IMPS is not limited to funds transfer only. It can be used for various other purposes as well. The service can be used for insurance premium payments, online shopping, OTC payments, utility bill payments, travel and ticketing, and for paying fees to schools, colleges, and universities.
- Inexpensive: IMPS is an inexpensive mode of fund transfer. The charges of IMPS are very low or nil that depends on the banks.
- Easily Accessible: Unlike other electronic fund transfer mediums, IMPS can be accessed easily. The IMPS full form is a clear indication of this feature. This is because you will always have your mobile phone with you which means that you can access the service anytime and anywhere you want. This comes in handy in a variety of situations such as any family emergency or immediate need of funds where you can request the required amount from your family and friends.
- Minimum Details Required: Fund Transfer through IMPS does not require any confidential details from both the sender and the receiver. The basic requirements for sending money through IMPS include the name, mobile number, and MMID of the beneficiary. However, funds can be transferred through IMPS using the account number and IFSC Code as well but such details are complicated and even a slight mistake in entering data can lead to significant financial loss.
How do I get Immediate Payment Service enabled?
- Sender– The customer has to do the Mobile Banking Registration if he/she wants to initiate the transaction through the mobile channel. For internet, ATM, and bank branch channels, mobile registration is not required.
- Receiver– Collect his/her MMID from the bank and share it with the sender or alternatively share his/her Account number & IFS code or Aadhaar number for receiving money. The receiver can register his/her mobile no. to get SMS alerts for transactions.
How to do IMPS through mobile banking?
It is important to know that how to initiate a transaction using your mobile phone. If you want to use the IMPS facility to transfer funds to another bank account through the mobile banking route, you need two things:
- The 10-digit mobile phone number that your beneficiaries have registered with their bank accounts
- The MMID of the beneficiary
MMID means Mobile Money Identifier. It is a 7-digit unique code issued to account holders by their banks to receive money using IMPS. If you have different bank accounts, you will have different MMIDs, even in the same bank. However, you can link them all to the same mobile number registered with your bank account.
Using MMIDs helps in keeping the account details private. Also, you do not need to remember account numbers and IFSC codes. Sending or receiving money is possible by just using registered mobile numbers and MMIDs.
You need to follow the below-given steps to do IMPS through mobile banking
- First of all, Log in to the official mobile banking app of your bank on your smartphone.
- Then Click on the funds’ transfer option.
- After that, Select the IMPS option on your mobile app.
- Then Enter the necessary beneficiary details such as mobile number, MMID, and amount to be transferred.
- Now add remarks for future references (E.g. reason for fund transfer).
- After verifying all the details, submit the fund transfer request.
- Both you and your beneficiary will receive a notification upon successful completion of the fund transfer.
How to do Immediate Payment Service through SMS?
A perfect thing about the Immediate Payment Service is that you can still initiate IMPS transfers without a net banking account or an internet-enabled smartphone. To make it more inclusive for everyone, banks enable IMPS transfers through SMS as well. So long as you have a mobile phone, you can IMPS facility via SMS as well.
However, to access this facility, you need to register for mobile banking and link your mobile number to your savings or current bank accounts. Once you have registered for the same, you can initiate a fund transfer through SMS. Here are the steps.
- First of all, Send a text to the SMS banking number provided by your bank. Input the text in the same format as suggested by the bank to initiate the IMPS fund transfer request.
- Then Punch in details like the account number of the payee, the IFSC code, and the transaction amount. Remember to follow the SMS format given by your bank
- After that, Enter the mPIN when your bank asks to validate the request
- Once your mPIN is verified, you will receive an SMS confirming the fund transfer
How to do IMPS through Internet Banking?
You can also access the Immediate Payment Service facility through net banking. In this case, you can transfer funds using the account number and IFSC code of the beneficiary.
Let us check the steps of using IMPS through internet banking:
- Log into your net banking account by providing a username and password.
- Then on the home page, click on the fund transfer option.
- Now select IMPS using your bank account and IFSC code (you can also use the MMID and phone number option if you have those details).
- Then enter beneficiary details such as account number, IFSC Code, bank branch, etc. It is important to note here that you will first have to register/add a beneficiary to your bank account.
- After adding a beneficiary, You will be able to initiate a fund transfer after approximately half an hour of adding the beneficiary.
- Now Enter the fund transfer amount and add remarks.
- Then Confirm payment after verifying details.
- You will receive a confirmation message for the fund transfer via both email and SMS
What is the IMPS reference number?
Once you complete an IMPS transaction by authenticating the payment, the bank provides you with a 12-digit number that is displayed on the screen. This is known as the IMPS reference number. You can find the number on your bank account statement too against the IMPS transaction ID.
What is Immediate Payment Service timing?
IMPS timing is very fast and Instant transfers in real-time. Once you complete an IMPS transaction by authenticating the payment, You can see the amount will be deducted from the bank of the sender and will show in the bank account of the Receiver instantly.
Does the customer need to register to remit the funds through IMPS?
For using IMP on mobile phones, a customer will have to register for mobile banking with his/her individual bank. However, for initiating IMP using the Bank branches, Internet banking, and ATM channels, no prior Mobile banking registration is required.
Can a customer link more than one account to the same mobile number?
Yes, customers can link more than one account to the same mobile number. However each A/C no. will have a different MMID.
Is the beneficiary customer also required to register for IMPS?
No need for registration, if receiving money using bank account details or Aadhaar Numbers. However, for receiving money using Mobile no. & MMID, Mobile registration is mandatory.
What is MMID? How do I get this Issued?
Mobile Money Identifier is a 7-digit number, issued by banks. MMID is one of the inputs which when clubbed with a mobile number facilitates fund transfer. Combination of Mobile no. & MMID is uniquely linked with an Account number and helps in identifying the beneficiary details. Different MMIDs can be linked to the same Mobile Number. (Please contact your bank for getting the MMID issued)
How can I transfer funds using Immediate Payment Service?
The following channels may be used to initiate IMPs transactions.
- Mobile phones
- Smartphone- Bank App/ SMS / WAP/USSD (NUUP)
- Basic phone-SMS/USSD (NUUP)
- Internet- Bank’s Internet banking facility
- ATM-By Using ATM Cards at Banks ATM
Here are the steps to transfer funds by IMPS
The sender is required to enter details such as
- MMID & Mobile no. or Account number & IFS Code or Aadhaar number
- Then Amount to be transferred
- After that Remarks/Payment Reference number
- Then required to enter Sender’s M-PIN
- After completion of the transaction, Both sender & receiver get SMS confirmation.
What are the options available for a customer for doing IMPS transactions?
- Using Beneficiary Account no. and IFS Code
- Using Beneficiary Mobile no. and MMID
Is the facility of Stop payment available on IMPS?
No, It is an immediate fund transfer service, after initiating the payment request payment cannot be stopped or canceled.
Further faqs on IMPS
22nd November 2010 by Smt. Shyamala Gopinath, DG RBI at Mumbai.
Instant credit will be done.
You should use IMPS in case of instant fund transfer is required.
You can find the sender details through the passbook entry, you can see the phone number/sender name in the narration. But sometimes it may not be mentioned in the narration, in such cases, you should visit your branch for sender details.
You need to follow the steps of doing imps if not done, then IMPS will show an issue.
No, just you need to create a beneficiary and then select that payee, enter the amount, verify with OTP, and the amount will be credited to the account of the beneficiary.
After doing an IMPS, a success msg will show and the instant amount will be credited to the account of the beneficiary. You should ask and confirm from the beneficiary for the amount is credited or not.
Yes, If your IMPS transaction times out or fails, check if your money has been debited from the account. If the money is not debited, you can wait for a few minutes and strike another transaction.
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