An Instant Payment Inter-Bank Electronic Funds Transfer System in India.

  • Definition-

The term IMPS refers to Immediate Payment Serviceis an instant payment inter-bank electronic funds transfer system in India. The fund transfer service is mainly through mobile phones. This service is always available to bank customers even on bank holidays. IMPS is regulated by National Payments Corporation of India, which came into existence in the year 2010. Initially 4 Banks of India were a part of the IMPS pilot project (State Bank of India, Bank of India, Union Bank of India, ICICI Bank).

  • What is MMID?

The term MMID refers to Mobile Money Identification Number, it consists of a seven digit number of which the first four digits are the unique identification number of the bank offering IMPS.

  • What is IMPS Banking?

The term IMPS banking refers to the process of electronic fund transfer service which takes place in an inter as well as intra bank transfers. In simple language IMPS helps customers to transfer money instantly from one bank account to another.

The IMPS helps customers to send money in real-time & the money is credited in a few seconds to the beneficiary’s account. There is no restriction on the minimum amount transferred to any bank account and the maximum amount that can be transferred to any bank account through IMPS is Rs. 2,00,000/-. IMPS banking transfers is available throughout the year even on holidays and banking holidays.

  • IMPS via Mobile:

If anyone wants to transfer money through the IMPS facility on their mobile phone then they are going to require two things namely:

  1. The 10 digit mobile phone number that the beneficiaries have registered with their bank accounts.
  2. The MMID of the beneficiary.

          There are a few steps that needs to be followed while transacting or transferring money through IMPS. The steps are listed below-

  1. You have to log into the official mobile banking app of your bank on your smartphone.
  2. Then click on the funds transfer option.
  3. After that you have to select the IMPS option on your mobile application.
  4. Now you have to enter the beneficiary details such as mobile number, MMID and the amount to be transferred.
  5. You can also add remarks for future references (reason for fund transfer).
  6. After you have verified all the details, you have to submit the fund transfer request.

         Once the fund transfer is completed then you and your beneficiary both will get a notification.

  • IMPS via Internet Banking:

The immediate Payment Service facility can also be done through net banking. Here you have to transfer funds using the account number and IFSC code of the beneficiary.  The steps for processing IMPS through net banking are as follows:

  1. You have to log into your net banking account by providing your username and password.
  2. On the home page, click on the funds transfer option.
  3. Then you select the IMPS using bank account & IFSC code(you can also use MMID and phone number option if you have those details).
  4. You have to fill in the beneficiary details such as account number, IFSC Code, bank branch & other details.  It is important to know that you have to first register or add a beneficiary to your bank account. After adding beneficiary you can make a fund transfer after half an hour.
  5. Then you enter the fund transfer amount and add remarks.
  6. Finally you confirm the payment after verifying all the details.

             Once your transfer is complete then you will receive a confirmation message for thefund transfer both via email and SMS.

  • Is there any Limit on the value of transactions in IMPS?
    No there are no limits on the value of transactions in an IMPS, the minimum can be Rs. 1 and the maximum can be Rs. 2,00,000/-.
  • Is IMPS Better than NEFT?

Yes IMPS is better than NEFT. In IMPS fund transfer happens immediately; where NEFT transactions take a longer time than IMPS. IMPS can be done 24 x 7 and even on holidays; NEFT can only be done on banking days. IMPS can have many beneficiaries in one account but NEFT can only be done from one bank branch to another bank branch which is registered under the NEFT scheme.

  • What is the difference between RTGS and IMPS?

RTGS occurs on a gross basis whereas IMPS happens immediately. The minimum transfer value for RTGS is Rs. 2, 00,000/-; in IMPS the minimum transfer value is Rupee 1. RTGS can be done only on banking days when the bank is open, whereas IMPS can be done on all days and even on bank holidays.

To conclude it can be said that IMPS form of money transfer is much better than NEFT and RTGS and it is convenient for customers to use the application as well.

  • FAQ’s:

Question1. What is the full form of IMPS?

Answer1. The full form of IMPS is Immediate Payment service.

Question2. What are the services available under IMPS?

Answer2. Other than fund transfer IMPS can be used for many other things like merchant payments, grocery bills, credit card bills, utility bills, school and college fees, mobile top-ups and DTH recharge. IMPS has a unique payment function called the National Unified USSD Platform (NUUP). NUUP provides banking services to all its customers & it works in all GSM enabled handsets.

Question3. Does the customer need to have a bank account to avail IMPS?

Answer3. No, the customer does not require a bank account to avail IMPS. Customers with no bank accounts can avail IMPS through PPI (Pre-paid Payments Instrument) issuer.

Question4. Can a customer link more than one bank account to IMPS?

Answer4. Yes, IMPS can be used for than one bank account through mobile applications of specific banks or one mobile application only.

Question5. Are there any extra charges for an IMPS transfer?

Answer5.  The Indian Ministry of Finance, to encourage digital transactions, has removed all types of additional charges for an IMPS mode of money transfer.