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Banking Term for IBPS PO Main: Immediate Payment Service (IMPS)

Oct 9, 2015 13:40 IST

    Immediate Payment Service (IMPS), a real-time funds transfer mechanism, developed by National Payment Corporation of India. It offers an instant, 24X7, interbank electronic fund transfer service through mobile phones. It is also being extended through other channels such as ATM, Internet Banking, etc. This facility is provided by NPCI through its existing National Financial Switch (NFS).

    Objective of IMPS

    To enable bank customers to use mobile instruments as a channel for accessing their banks accounts and remit funds
    Making payment simpler just with the mobile number of the beneficiary         
    To sub-serve the goal of RBI  in electronification of retail payments
    To build the foundation for a full range of mobile based Banking services.   

    Participants in the transaction:

    Remitter (Sender)
    Beneficiary (Receiver)
    Banks
    National Financial Switch - NPCI

    Procedure of fund transfer through IMPS:

    Registration for Remitter:

    Remitter is required to register for mobile banking service with his/her bank and obtain Mobile Money Identifier (MMID) and MPIN from the bank. Download Software (Application) for mobile banking (ensuring compatibility of mobile with the application) or using the SMS facility in the mobile if bank provides IMPS on SMS.

    Note: Mobile Money Identification Number (MMID) is a seven digit number of which the first four digits are the unique identification number of the bank offering IMPS.

    Registration for Beneficiary:

    Beneficiary has to link his/her mobile number to the account in the respective bank and obtain MMID from the bank. There is no need to register for mobile banking service.

    Services available under IMPS:

    1. Funds Transfer and Remittances: Sending Money and Receiving Money
    2. Merchant Payments

    Grocery bills
    Travel & Ticketing
    Credit Card bills
    Utility bills
    Online shopping
    School & College fees
    Mobile top ups & DTH recharge

    Benefits of IMPS:

    Instant
    Available 24 x7 (functional even on holidays)
    Safe and secure, easily accessible and cost effective
    Channel Independent can be initiated from Mobile/ Internet / ATM channels
    Debit & Credit Confirmation by SMS
     
    Advantage of IMPS over NEFT and RTGS: No other fund transfer mechanism can match IMPS in terms of swiftness when it comes to remittance and merchant payments.

    IMPS is instant fund transfer, in ideal scenario transaction will be completed in 15-20 seconds i.e. beneficiary will receive the amount in 20 seconds.
    There is no holiday for IMPS like NEFT and RTGS.
    IMPS works 365 days and 24x7.  
    Both the remitter as well as Beneficiary will receive the SMS i.e remitter will receive SMS on debit to his account and beneficiary will receive SMS on credit to his account.

    Who all are offering IMPS?

    Banks and non-bank entities authorized by RBI are offering IMPS to the customers across India. Pre-Paid instruments Issuer such as Oxigen, GI Tech , Airtel Money, ITZ Cash, UAE Exchange, mRupee & M-Pesa etc are providing IMPS services.

    Immediate Payment Service (IMPS), a real-time funds transfer mechanism, developed by National Payment Corporation of India. It offers an instant, 24X7, interbank electronic fund transfer service through mobile phones. It is also being extended through other channels such as ATM, Internet Banking, etc. This facility is provided by NPCI through its existing National Financial Switch (NFS).

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