As technology advances, banking becomes more convenient for customers. One of the significant steps in this direction is the introduction of IMPS, which stands for Immediate Payment Service. In this article, we will discuss IMPS full form, meaning, and how it works.
IMPS = Immediate Payment Service
In today’s fast-paced world, customers demand quick and hassle-free banking services. Immediate Payment Service (IMPS) is a payment system that offers instant interbank money transfer through mobile phones, internet banking, or ATM machines. In this article, we will explore what IMPS means, its features, advantages, limitations, and how it differs from other payment systems.
What is IMPS?
IMPS is an instant interbank electronic fund transfer service launched by the National Payments Corporation of India (NPCI) in 2010. It is available 24×7, including weekends and bank holidays, and allows customers to transfer money instantly to any bank account in India.
IMPS uses the Immediate Payment Service (IMPS) identifier, also known as the Mobile Money Identifier (MMID) or the Indian Financial System Code (IFSC) to enable fund transfer. MMID is a unique 7-digit number issued by the bank, while IFSC is a 11-digit alphanumeric code used to identify bank branches for interbank transactions.
Features of IMPS
IMPS offers various features that make it a preferred mode of payment. Some of the key features of IMPS are:
- Instant transfer: IMPS facilitates instant transfer of funds, allowing customers to send and receive money in real-time.
- Availability: IMPS is available 24×7, including weekends and bank holidays, ensuring that customers can make transactions anytime, anywhere.
- Accessibility: IMPS can be accessed through multiple channels such as mobile banking, internet banking, and ATM machines.
- No limit: There is no upper limit on the amount that can be transferred through IMPS, making it an ideal mode of payment for high-value transactions.
- Easy to use: IMPS is easy to use, and customers can transfer funds using their mobile phones, internet banking, or ATM machines.
Advantages of IMPS
IMPS offers several advantages to customers. Some of the key advantages of IMPS are:
- Instant transfer: IMPS enables customers to transfer funds instantly, allowing for quick and hassle-free payments.
- 24×7 availability: IMPS is available 24×7, ensuring that customers can make transactions anytime, anywhere.
- Multiple channels: IMPS can be accessed through multiple channels, including mobile banking, internet banking, and ATM machines, making it a convenient mode of payment.
- High limits: IMPS has no upper limit on the amount that can be transferred, making it an ideal mode of payment for high-value transactions.
- Low charges: IMPS charges are relatively low, making it an affordable mode of payment compared to other payment systems.
How to use IMPS?
Using IMPS is a simple process. Customers can use any of the following methods to transfer funds using IMPS:
- Mobile Banking: Customers can download their bank’s mobile banking application and register for IMPS. Once registered, they can transfer funds using the beneficiary’s mobile number and MMID or account number and IFSC code.
- Internet Banking: Customers can log into their bank’s internet banking portal and register for IMPS. Once registered, they can transfer funds using the beneficiary’s account number and IFSC code.
- ATM: Customers can visit their bank’s ATM and select the IMPS option. They can then enter the beneficiary’s account number and IFSC code to transfer funds.
IMPS Charges and Limitations
IMPS charges vary from bank to bank and depend on the amount being transferred. Generally, the charges for IMPS transactions are lower than those for NEFT and RTGS transactions.
As for limitations, there is no lower limit on the amount that can be transferred through IMPS. However, there is an upper limit, which varies from bank to bank. Customers should check with their respective banks to know the upper limit for IMPS transactions.
IMPS Vs. NEFT
NEFT (National Electronic Funds Transfer) is another electronic fund transfer system offered by banks in India. While both IMPS and NEFT allow for fund transfer between bank accounts, there are some key differences between the two.
Firstly, NEFT is not available 24×7 and is only available during specific hours on weekdays and Saturdays. In contrast, IMPS is available 24×7, including weekends and bank holidays.
Secondly, NEFT is a batch-based system, and the funds are transferred in batches. This means that the transfer may take a few hours to a few days to complete. On the other hand, IMPS is an instant transfer system that enables real-time fund transfer.
Lastly, NEFT has a lower limit and an upper limit on the amount that can be transferred, while there is no lower limit on the amount that can be transferred through IMPS.
IMPS Vs. UPI
UPI (Unified Payments Interface) is a mobile-based payment system that enables customers to transfer funds instantly between bank accounts. UPI and IMPS have some similarities and differences.
Like IMPS, UPI is available 24×7, including weekends and bank holidays. UPI is also an instant transfer system, enabling real-time fund transfer.
However, unlike IMPS, UPI does not require the beneficiary’s account number and IFSC code. Instead, UPI uses a Virtual Payment Address (VPA) to enable fund transfer. Additionally, UPI has a lower limit and an upper limit on the amount that can be transferred, while there is no lower limit on the amount that can be transferred through IMPS.
IMPS Security Measures
IMPS transactions are secure, and several security measures are in place to prevent fraudulent activities. These measures include:
- Two-factor authentication: IMPS transactions require customers to authenticate their transactions using a One-Time Password (OTP) and/or MPIN (Mobile Personal Identification Number).
- Encryption: IMPS transactions are encrypted, ensuring that the data transmitted is secure and cannot be intercepted by unauthorized persons.
- Transaction limits: Banks set transaction limits for IMPS transactions to prevent fraudulent activities.
While IMPS offers several advantages, it has some disadvantages as well. These include:
- Internet connectivity: IMPS transactions require a stable internet connection, and poor connectivity may lead to failed transactions.
- Transaction charges: While IMPS charges are lower than those for NEFT and RTGS transactions, they still incur charges that may be a deterrent for some customers.
Future of IMPS
IMPS has been a game-changer in the Indian banking sector, enabling quick and hassle-free fund transfer. With the increase in digital payments, IMPS is expected to grow further and become a preferred mode of payment for customers.