Transferring funds in real-time and around the clock was a huge challenge in banking. During banking hours, only NEFT and RTGS were accessible for fund transfers. With this in mind, the National Payments Corporation of India (NPCI) launched IMPS – Immediate Payment Service. IMPS facilitates fund transfers 24*7*365 days and anywhere in India.
Currently, 652 participants are active on IMPS, which includes banks and PPIs. IMPS can be used for fund transfer services or “merchant pay” commercial transactions up to 5 Lakh INR per day for instant domestic transactions.
What are the benefits of IMPS?
IMPS is one of the most accessible, cost-effective and secure means of money transfer. The benefits of IMPS are as below:
- Multiple access and ease of use: IMPS can be transacted through mobile phones as well as internet banking anywhere and anytime, including bank holidays.
- Instant transfer of funds: Money transfer happens in real-time, and in cases of technical issues, money is transferred within an hour.
- Low transaction cost: Subject to the transaction amount and the policy of the bank through which IMPS transactions are done, regular IMPS charges range anywhere from 2.5 to 15.
- Accessibility: IMPS transacted through mobile phones require details like mobile number and MMID (Mobile Money Identifier) which is a unique 7-digit number of which the first 4-digits are unique identification of the bank offering IMPS. However, IMPS transacted through internet banking requires all details like bank account number and IFSC code.
Note: MMID cannot be generated without enabling mobile banking. Therefore, it is required to have a functioning savings bank account that allows mobile banking.
Who are the participants in an IMPS transaction?
Each IMPS transaction involves the following parties:
- Sender (Remitter)
- Receiver (Beneficiary)
- National Financial Switch – NPCI
Prerequisites for IMPS through Mobile Banking
- Registration for Sender:
- Activate mobile banking service of the bank.
- Get MMID (Mobile Money Identifier) and MPIN from the bank.
- Download the mobile banking app or use the SMS facility if your bank offers IMPS via SMS.
- Registration for Receiver:
- Link your mobile number to the bank account.
- Obtain MMID (Mobile Money Identifier) from the bank.
How to transfer funds via IMPS?
Fund transfer/remittance through an IMPS can be done using:
- Mobile number & MMID (P2P): Both Sender and the Receiver must register their mobile number with their respective bank accounts and obtain MMID.
- Account number & IFS Code or Aadhaar Number (P2A): In cases where the receiver’s mobile number is not registered with any bank account, IMPS transfer is not possible using Mobile Number & MMID. It is made possible using the receiver’s bank account number & IFSC code or Aadhaar Number.
Follow these steps to carry out fund transfers through IMPS:
Step 1: Log in to the banking app, select the IMPS from the transfer or payment method or use the SMS facility if your bank offers IMPS on SMS.
Step 2: Enter Receiver’s /Beneficiary’s mobile number & their MMID for bank account number & IFS code or Aadhaar number, amount and your MPIN.
Step 3: You will receive a confirmation message on the screen and SMS.
Step 4: Note the transaction reference number for future use.
If due to technical issues, the amount is not transferred instantly, the transfer generally occurs within an hour. However, a compliant request with the bank can also be raised.
However, it is important to note that you must always check the details like the beneficiary’s account number, IFSC, mobile number and MMID. This is because money, once transferred, can be returned only by the beneficiary.
Status and Tracking of the IMPS transaction
Once the transfer under IMPS is complete, the IMPS reference number is generated and provided. The IMPS reference number is a unique reference number for every IMPS transaction. The status of the IMPS transaction can be tracked on the mobile banking app or the bank website using the IMPS reference number.
Frequently Asked Questions (FAQs):
- What is IMPS?
Immediate Payment Service facilitates fund transfers 24*7*365 days across India through banks and RBI-authorized Prepaid Payment Instrument Issuers (PPI).
- What is the limit for IMPS?
The IMPS limit per transaction is 5 lakh INR (for all channels except SMS and IVR). You may contact your bank for any further information.
- What services are available through IMPS?
- Sending and Receiving money
- Beneficiary account checking functionality
- Transaction status-checking functionality
- Foreign Inward Remittance
- Which channels are available for fund transfer using IMPS?
The following channels may be used to initiate IMPS transactions:
- Mobile Banking App/SMS
- Internet- Net banking facility
- Bank branch
- What is MMID? How to get an MMID issued?
MMID- Mobile Money Identifier is a unique 7-digit number, issued by banks. The first 4 digits identify the bank offering the service, and the last 3 digits are unique to the customer. You may contact your bank to obtain MMID.
- Is the facility to Stop payments available on IMPS?
No, payment cannot be stopped or cancelled after initiating a payment.
- What are the charges for IMPS transactions?
The charges vary from bank to bank. Generally, IMPS charges range anywhere from no charge or 2.5 INR to 15 INR.
- Can I link multiple accounts to the same mobile number for MMID?