IMPS - Immediate Payment Service

What is IMPS?

IMPS stands for immediate payment service. A majority of interbank mobile payment services, fund transfer and transactions are carried out through NEFT (national electronic fund transfer) mechanism. NEFT transactions can be done only during working hours and are settled in batches. IMPS offers instant 24X7 money transfer service through cell phones instantly. Immediate payment services facilitates the customers to use cell phones as a medium to access their bank accounts and make online transfers in a secured manner with immediate confirmation features. This facility is provided by NPCI (national payment corporation of India) through its existing NFS (national financial switch).

Online Money transfer using immediate payment service facility can be done in the following way-

IMPS money transfer requires the remitter customer to make money transfer using receivers phone number and MMID. MMID is a 7 digit code issued by a participating bank to their Mobile Banking registered customers for availing IMPS service as a beneficiary. The remitter as well as the beneficiary must be registered with the respective bank and get MMID, in order to send receive funds using IMPS. If the remitter’s number is registered with the bank but beneficiary’s number is not registered with the bank account, remitter shall not be able to send money.
The IMPS funds transfer can be possible using Beneficiary account number and IFSC code as well. The fund transfer using IFSC code can be done in the following way-
[imps] [receiver’s account number] [IFSC code] [account type] [Amount] [SMS PIN/MPIN] [Remarks]
to Bank’s long code or short code number. On initiating transaction as above, customer receives the confirmation SMS with status of transaction instantly.

Objectives of IMPS

1) Immediate payment service facilitates bank customers to use their phones for accessing their bank accounts and to carry out online money transfer.
2) It makes payment simpler just with the mobile number and MMID (mobile money identifier) of the Receiver.
3) It also serves the goal of Reserve Bank of India (RBI) in interbank electronic fund transfer services.
4) Immediate payment service aims to build the foundation for a full range of cell phone based Banking services.
5) It is beneficial where instant payments are a matter of concern.

Mobile Banking using IMPS

Now-a-days people prefer electronic fund transfer because of its convenience and ease; hence banks are introducing various ways to facilitate transfer using electronic media. The National Payment Corporation of India (NPCI) provides IMPS for interbank payments using mobiles.