IMPS Full Form
IMPS stands for Immediate Payment Service. It is an Indian inter-bank system of instant payment through electronic funds transfer which can be done through mobile phone. This is an all-time available service including bank and public holidays.
IMPS is built and working upon the existing National Financial Twitch Network. The IMPS is owned by the National Payments Corporation of India. Its services were introduced on 22 November 2010. At present, the service is available in 53 commercial banks, 24 PPLi, and 101 rural/district/urban and cooperative banks. Every month, more than 200 million IMPS transactions take place that accounts roughly for an amount of US$20 billion.
Steps to Transfer Funds Through IMPS
The funds can be transferred easily and quickly through IMPS as it is an online money transfer system for which you don’t have to go anywhere. Follow the given steps to transfer money through IMPS:
- The very first step is to install the mobile banking app of the bank in which you have a current or savings account.
- Open the app and the user ID and password that is given by the bank, use that to log in. Mostly, the mobile banking app automatically collects your bank details as per necessity.
- Further, click on the IMPS option and generate the MMID (Mobile Money Identifier) and MPIN.
- After generating MMID and MPIN you are permitted to use the IMPS facility.
- Now if you want to transfer the funds then enter the MMID of the beneficiary.
- Now you have to enter only the required details like the name of the receiver, the mobile number that is registered with the bank account, and the amount that you want to transfer.
- After it, an SMS or OTP will be sent to your mobile for confirmation. You have to enter this confirmation text so the amount can be credited to the receiver’s account and debited in your account. you will receive a confirmation text through SMS or OTP that you have to enter for debit in your account and credit in the receiver's account.
- In the end, note the transaction reference number to avoid any future uncertainty.
Features of IMPS
The facility of IMPS has several features that offer many benefits to the user in today's digital era. They include the followings:
- It provides complete safety and security of the money that is transferred.
- This is not necessary for the user to having any technical knowledge. Anybody can easily use it by a smartphone and an internet connection.
- IMPS is among the fastest source of money transfer from one bank to another.
- There is no need of sharing the bank details especially the account number while transferring the funds through IMPS.
- The service is available all the time. Hence, there is not any effect of public holidays on this service and it remains available 24×7.
- The notification of debit and credit is sent to both parties immediately after the completion of the transaction.
- The service can be used with very small fees, depend on the amount that you are transferring.
- The current transfer limit of IMPS is 5,000 Rs. only.
- The service can also be used on a basic handset by SMS and texting but for this, your mobile number should be registered with your bank.
- The service can be enjoyed by using the mobile banking app (if there is any) of the respective bank.
Uses of IMPS
The uses of immediate payment service are as follows:
- Transferring funds
- Making merchant payments
- Mobile banking transaction
- Receiving funds
- Checking aadhar link to the bank account
Details Required For IMPS Transaction
To access the funds’ transfer facility through IMPS, the given set of information is required:
- Mobile Money Identifier of the receiver or MMID
- MMID of the sender
- Mobile number of the sender
- Bank account number of the receiver
- Bank IFSC code of the receiver
- Aadhar card number of the receiver
Fess and Charges of IMPS
There is a certain amount of fees that can be charged while using IMPS for fund transfer. These charges depend on the amount that you transfer.
- ?2.5 on transferring funds less than or equal to ?10,000.
- ?5 on transferring funds more than ?10,000 but less than ?1 lakh.
- ?15 on transferring funds more than ?1 lakh but less than ?20 lakh.
Banks That offer IMPS Facility
The list of some of the top Indian banks that offer the facility of IMPS money transfer is given under:
|State Bank of India
|Kotak Mahindra Bank
|Oriental Bank of Commerce
|Bank of Baroda
|Punjab National Bank
|Indian Post Office
|City Union Bank
|Ujjivan Small Finance Bank
|Indian Overseas Bank
|AU Small Finance Bank
IMPS vs NEFT
|Available for 24×7 and 365 days of the year.
|Available only on working days, i.e., Monday to Saturday from 8 AM to 7 PM.
|The transaction may take hours to settle.
|Allows transaction up to Rs. 2 lakh only.
|No upper limit transaction so can be helpful for making bigger payments.
Frequently asked Questions
Q. Is there any fees charged while receiving money through IMPS?
Q. State some of the advantages of using IMPS.
- 24×7 available
- Safe and secure
Q. Can the funds be transferred to other countries also through IMPS?
Ans. No, because IMPS is only for transferring the funds within the country only.
Q. Can funds also transfer through IMPS on government holidays?
Ans. Yes, it is available throughout the year including weekends as well as government holidays.
Q. What can be done if the amount has been debited from the sender's account but not credited to the receiver’s account?
Ans. In such a case, the amount will automatically be credited back to your account within 24 hours. But if unfortunately it doesn’t happen then you must contact your bank manager as soon as possible.
Q. What is the daily fund limit of IMPS?
Ans. In general, the daily fund limit of IMPS is Rs. 25 lakh.
Q. Is it safe to use IMPS?
Ans. Yes, it is completely safe and secure because it is enabled with end-to-end encryptions and firewall servers.
Q. Differentiate between MMID and MPIN.
Ans. MMID is a 7-digit identification number issued by the bank while MPIN is a 4-digit password that is used for mobile banking.
Q. Name the various channels of IMPS.
Ans. The modes of transfer in IMPS are:
- Mobile and internet banking
- Account number and IFSC code