IMPS is an instant money transfer service facilitated by NPCI (National Payment Corporation of India). Full form of IMPS is Immediate Payment Service that allows people to send and receive funds in real-time. The service facilitates inter-bank transactions through mobile banking and Internet banking. This has become a highly preferred mode for transferring funds for a large population of the country and especially youngsters. The major reason behind it is that IMPS is available 24/7, 365 days which makes it highly flexible and dependable.
Unlike banks that are closed on public holidays and gazetted holidays, IMPS is always available. This means that you can be assured even if it takes some time to transfer funds due to server downtime or some technical issues, the funds you have transferred will reach the destination same day.
Features of IMPS:
- Flexible: IMPS is highly flexible in nature in various aspects. Some of such aspects include: Availability: IMPS is available 24/7, 365 days meaning that it can be used anytime and from anywhere. You do not have to go to bank and wait in long queues to deposit or transfer money. Anytime availability of IMPS is its unique selling point and a major reason for being popular among the new generation.
Multi-Platform Support: Although IMPS is typically designed for mobile banking, it supports other platforms such as web. Fund transfer through IMPS can also be done through online banking. However, you will require bank account details of the beneficiary such as account number, IFSC code, etc.
Versatile: IMPS is versatile as it can be used for several other purposes rather than just sending and receiving money. The payments can be classified as P2P and P2M payments. Both P2P and P2M modes can be used for making payments for online shopping, online merchant payments, insurance premium payment, OTC payments, fees payment to schools and colleges, utility bill payments, and travel and ticketing.
- Easy to use: As compared to other modes of funds transfer, IMPS is quite easy to use. You would only require the mobile number (linked to the bank account) and unique MMID of the receiver to transfer the money. Such little information requirements make IMPS an easy to use payment medium.
- Fast Money Transfer: As the name suggests, IMPS is an instant money transfer medium which facilitates funds transfer in real time. Even in the situation of issues such as server downtime or any technical problems, IMPS does not take more than an hour to transfer money in the bank account of the receiver.
- A Secure Medium: Despite using the internet as a fund transfer medium, IMPS is one of the safest mediums of fund transfer. Bank servers are fairly protected through firewalls whereas the data travelling on the web is encrypted which is almost impossible to crack. However, there is no safety net for human errors. Terms and conditions of IMPS clearly state that if the user makes any error while transferring the funds such as putting in the wrong mobile number or the wrong MMID then he / she has to bear the full responsibility of their actions.
- Mobile Alerts: IMPS utilises the mobile banking in its full capacity. As soon as you transfer fund to the receiver, both sender and receiver receive text messages from the bank as alerts from the app. This comes as a relief for both parties as they are aware of the true state of the transaction.