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What is IMPS? How Does It Work? Research Team | Posted On Friday, June 14,2019, 06:23 PM

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What is IMPS? How Does It Work?



What is IMPS?

An IMPS is Immediate Payment Service. It is an instant inter-bank payment transfer service that helps transfer funds using mobile banking apps or net banking accounts. The key features of the IMPS service are it can be availed anytime accross the year, including public holidays and bank holidays. Other fund transfer services like RTGS and NEFT remains operational only on bank working days.

The project was initiated in the year 2010 through four major Indian banks. With its success, the service is now offered by more than 150 banks in India. The payer can immediately credit the payee’s account using IMPS with the registered mobile number and MMID through mobile banking. The funds can also be transferred through net banking account using the bank account number and payee’s IFSC code.

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What is IMPS? How Does it Work?

How to Transfer Funds Using IMPS:

Follow the steps given below to carry out IMPS transfer through online net banking account:

  • You must first visit the online web portal of the bank.
  • Log on to the net banking account using your login credentials.
  • Add the beneficiary by providing details of his/her account number, IFSC code, name and contact details.
  • On submission of the details, your bank notifies you saying, the beneficiary has been added.
  • Go to the fund transfer section and select the name of the beneficiary to whom the funds would be transferred.
  • On selecting the name, the account details of the beneficiary appear.
  • You need to enter the amount and the necessary remarks
  • Confirm payment to transfer funds, instantly through IMPS.

See Also: Digital Wallets In India - Best money Transfer App in India

Process of Conducting IMPS Using Mobile Banking:

Given below are the steps to conduct the IMPS transfer by logging on to your mobile banking account:

  • Log on to your mobile banking app using your login credentials.
  • If the beneficiary is not added, then add a new beneficiary using the same process as mentioned above.
  • Once the beneficiary is added, click on the ‘fund transfer/ send money’ option.
  • You then select the IMPS option.
  • You need to enter details like the beneficiary mobile number, amount and his mobile money identifier (MMID).
  •  You have to then enter your mobile PIN (MPIN) to authenticate the transaction.
  • Once the MPIN is verified, your money will be transferred instantly to the account of the beneficiary.
  • You will receive a confirmation message on your registered mobile number once the transaction has been successfully completed.

See Also: Government Announces Measures To Promote Cashless Payments

What are the Features of IMPS?

The IMPS was introduced in the year 2010. It has since changed the way people make payments for goods and services. This system helps carry out transactions instantly without any hassles. With IMPS, payment settlement is quick, convenient and easy. The unified payment interface (UPI) is also based on this platform. Listed below are some important features of the IMPS system:

  • The IMPS is one of the fastest and most secure ways of transferring funds immediately across accounts.
  • The process takes place electronically reducing chances of theft or loss of money, unlike cash transactions.
  • IMPS can be accessed online through net-banking websites and also on mobile banking apps. The services are available 24*7. Money can be transferred using IMPS on public holidays and on bank holidays too.
  • There are some other benefits of IMPS services as well. Money can be transferred conveniently to the beneficiary by providing his/her mobile number along with mobile money identifier (MMID).
  • It is not mandatory to provide the bank account number of the beneficiary, while transferring money using the IMPS service for mobile transfers. The transfer payee receives a transfer notification once the transfer is complete.
  • The maximum limit up to which funds can be transferred using IMPS is Rs 2 Lakh a day. The minimum transaction limit is Rupee 1 a day.

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