IMPS, short for Immediate Payment Service, is a real-time interbank electronic funds transfer system in India. It was introduced by the National Payments Corporation of India (NPCI) to enable instant and secure money transfers between banks through mobile phones, internet banking, and ATMs. IMPS operates 24/7, including weekends and holidays, making it one of the most convenient and accessible payment systems in the country. Let’s explore the key features, process, advantages, and limitations of IMPS:
Features of IMPS:
- Real-Time Transactions: IMPS facilitates immediate and real-time transfer of funds on a 24/7 basis, ensuring that the beneficiary receives the money instantly.
- Multiple Channels: IMPS can be accessed through various channels, including mobile banking applications, internet banking portals, and ATMs, providing users with flexibility and convenience.
- Interbank Transactions: IMPS enables money transfers between accounts held with different banks, promoting seamless interbank transactions.
- Immediate Confirmation: Both the sender and the beneficiary receive instant confirmation of the successful transaction, providing assurance of the funds transfer.
- No Minimum Transaction Limit: IMPS has no minimum transaction limit, making it suitable for transferring even small amounts.
- Mobile Number and MMID: To use IMPS through mobile banking, customers need to register their mobile number with the bank and obtain a Mobile Money Identifier (MMID).
Process of IMPS:
- Mobile Banking or Internet Banking: To use IMPS, customers need to have mobile banking or internet banking facility enabled on their bank account.
- Registration: Customers need to register their mobile number with the bank to use IMPS through mobile banking. For internet banking, the registration process may vary from bank to bank.
- Beneficiary Registration: Before initiating an IMPS transaction, customers need to add the beneficiary’s account details, including the account number and IFSC code, in the beneficiary list.
- Transaction Initiation: To initiate an IMPS transaction, customers need to enter the beneficiary’s account details, the amount to be transferred, and a Mobile Money Identifier (MMID) if using mobile banking.
- Secure PIN: Customers need to enter a secure PIN or One-Time Password (OTP) received on their registered mobile number to authorize the transaction.
- Instant Transfer: Once the transaction is authorized, the funds are instantly transferred to the beneficiary’s account.
Advantages of IMPS:
- Real-Time Transactions: IMPS offers instant fund transfers, making it ideal for urgent and time-sensitive payments.
- 24/7 Availability: IMPS operates round-the-clock, providing users with the flexibility to transfer money at any time, including weekends and holidays.
- Interbank Transactions: IMPS facilitates seamless interbank transactions, allowing users to transfer money to accounts held with different banks.
- No Minimum Transaction Limit: IMPS has no minimum transaction limit, making it convenient for transferring small amounts.
- Secure and Reliable: IMPS transactions are highly secure and reliable, ensuring the safety of customer data and funds.
Limitations of IMPS:
- Transaction Charges: Banks may charge a fee for IMPS transactions, which can vary depending on the amount being transferred and the bank’s policies.
- Registration Requirements: Customers need to register their mobile number or activate internet banking to use IMPS, which may involve additional steps for first-time users.