IMPS

IMPS
 

Immediate Payment Service (IMPS)

IMPS is the immediate fund transfer service that facilitates fast and easy fund transfer with no hassles. For transferring funds real time and 24×7×365 interbank was a major challenge faced in banking industry. IMPS which is an instant, multi-channel, interbank electronic fund transfer service offered by National Payments Corporation of India (NPCI). It facilitate customers to use mobile instruments as a channel for accessing their bank accounts and put high interbank fund transfers in a secured manner with immediate confirmation features.

IMPS provides robust & real time fund transfer which offers an instant, 24×7, interbank electronic fund transfer service that could be accessed on multiple channels like Mobile Banking, Internet Banking, ATM and Branch. IMPS are an emphatic service which allows transferring of funds instantly within banks across India which is not only safe but also economical.

NEFT & RTGS were available for fund transfer during banking hours. IMPS are different from NEFT and RTGS as it is available 24/7 and 365 days regardless of bank holidays.

History of IMPS:

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 is now available to the Indian public.

This facility is provided by NPCI through its existing NFS switch.

IMPS is more popular on mobile phones but it can also be used through desktops, laptops and tablets. On mobile phones, you only have to generate a unique 7-digit MMID (Mobile Money Identifier). After that, you can avail the service as per the mobile application of your bank. The maximum transaction limit of IMPS for regular use goes from Rs. 1/- to Rs. 2 lakh according to different banks. In addition, there is no minimum limit for transactions in IMPS.

Users can choose to transfer the funds using the 10-digit mobile number of the receiver or bank details such as account number and IFS Code. However, transferring money through mobile number is easier as the chances of mistakes are low. This is because entering complicated bank details can lead to mistakes. Using mobile number for transactions is a better idea as both parties do not have to share their confidential bank details with each other.

Sometimes users make mistakes in entering the mobile number or bank details and in such conditions, situations can become tricky. If the mobile number or account number does not exist, either the funds would not transfer or in case of a transfer, it will be refunded automatically. However, if you have entered a wrong but existing mobile number or bank account number then the funds can only be refunded by the beneficiary. This is why it is always better to double or triple check the information.

Services provided:

Financial Services (IMPS Transactions)

• P2P (Person to Person) Using MMID and Mobile number of beneficiary
• P2A (Person to Account) Using IFSC Code and Account number of beneficiary
• P2M (Person to Merchant) (PUSH) Merchant MMID and Mobile number is essential
• M2P (Merchant to Person) (PULL) Person MMID and Mobile number is essential
• P2U (Person to UID) Using Aadhaar number of beneficiary

The list of features available under IMPS is given here.

• 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. 

• 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. 

• 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 the mobile number or by using the bank account details. IMPS can be used 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 payment, online shopping, OTC payments, utility bill payments, travel and ticketing and for paying fees to schools, colleges and universities.

Indian banking system has evolved over the years and fast electronic fund transfer systems such as NEFT, RTGS and IMPS are good examples of modernisation. Each one of these has its own perks but IMPS can be easily conceived as the fastest mode of fund transfer. Some of the benefits of using IMPS as a primary fund transfer medium are explained here.

• 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 name, mobile number and MMID of the beneficiary. However, funds can be transferred through IMPS using 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. 

• Inexpensive: IMPS is an inexpensive mode of fund transfer. The charges for IMPS are as follows: 

With such minimal charges, IMPS can be called the fastest and most inexpensive medium of fund transfer. 

• 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 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.

NEFT, RTGS and IMPS, all three offer quick money transfer but all of these are different from each other. Nonetheless, these three fund transfer methods may differ from each other according to inter-bank regulations but separately their functioning remains the same.

• IMPS: As the IMPS full form suggests, it is the fastest and anytime available money transfer service in Indian banking system. It transfers funds instantly into the beneficiary’s bank account and is available 24 X 7 X 365 days. As compared to NEFT and RTGS, it does not require too much use of confidential information and requires only the mobile number and MMID of the receiver. This makes it a less complex and a safer way of money transfer. In addition, using mobile banking as a platform makes it more flexible and customer friendly.

Despite being the easiest and fastest mode of fund transfer, there are a number of factors that you need to consider while using IMPS. Here is a list of such factors.

• Requires Mobile Banking: IMPS essentially requires mobile banking for such fast and easy transactions. You need to have mobile facility in your linked bank account to avail this services as it functions through the mobile application of the specific bank.
• No Margin of (for) Errors: While using IMPS, even the smallest error can transfer your funds to wrong bank account. It might be one wrong digit of the receiver’s mobile number or wrong bank account information. In addition, there is no provision in RBI regulations to refund the money without the consent of the beneficiary. You will be lucky if the entered mobile number or bank information does not exist but in any other scenario you have to convince the beneficiary to refund your transferred amount. This is why you should check the entered information twice and in fact thrice before confirming the transaction. 

• Requires Understanding of Mobile Applications and Internet: Since IMPS works through bank’s mobile application, you need to have some understanding of the use of internet and other aspects of mobile banking. If not, you might consider even the simplest user interface as a complex one and have a bad user experience.

Here is a list of some frequently asked questions by the users:

• Q. What is the IMPS full form?
• A. The IMPS full form stands for Immediate Payment Service.
• Q. What are the services available under IMPS?
• A. Besides fund transfer and remittances, IMPS can be used for online merchant payments, grocery bills, credit card bills, utility bills, school and college fees, and mobile top-ups and DTH recharge.
• Q. Can a customer link more than one bank account to IMPS?
• A. Yes, IMPS can be used for more than one bank account through mobile applications of specific banks or through one mobile application only.
• Q. Can a customer link two or more accounts to the same mobile number?
• A. A customer can link more than one account to the same mobile number. However, each account will have a different and unique MMID.
• Q. Is it necessary for the customer to register for remitting funds through IMPS?
• A. It is required that the customer should sign up for mobile banking service if he/she wants to use IMPS on mobile phone. This registration process would carry forward as per the bank’s framed procedures. But, to initiate IMPS transactions by visiting bank branch or using internet banking and ATM channels, no prior mobile banking registration is required.
• Q. If a customer has more than one account connected to his/her mobile number how would they select the account from which the transfer has to be made?
• A. This process is made easy with the availability of a Mobile Money Identifier (MMID) code allocated by the bank for each account handled by the customers. This permits the customer to select the particular account using the MMID code.
• Q. What are the IMPS Timings for initiating and receiving payments?
• A. Any user can make IMPS Transactions 24 x 7 a day including Sundays and bank holidays.
• Q. What is the IMPS Limit?
• A. With IMPS, any user can transfer funds as low as Rs.1.00 which makes it a better option than NEFT & RTGS for smaller payments. As NEFT does not transfer funds instantly and RTGS do not allow fund transfer below Rs.5.00 lakh.

IMPS Maximum Limit per transaction is Rs.5.00 lakh. Multiple transactions may be permissible depending upon your bank and IMPS Limits approved.

• • Q. What are the applicable IMPS Charges?
  • A. IMPS Charges are decided by the individual banks, which means IMPS charges can vary from one bank to another.

Q. Is the beneficiary customer also required to register for IMPS?

• • A. No need for registration, if receiving money using bank account details or Aadhaar Number. However, for receiving money using Mobile no. & MMID, Mobile registration is mandatory.

Q. What is MMID? How do I get this Issued?

• • A. Mobile Money Identifier is a 7 digit number, issued by banks. MMID is one of the input which when clubbed with 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 MMID’s can be linked to same Mobile Number.