After the rise and popularity of ATMs (Automated Teller Machines), banks lowered their dependency on manual processes. Banks were now computerised and relied less on paperwork. The number of customers were also growing rapidly and banks were becoming more and more crowded. Limited availability of staff and restriction on funds transfer due to public holidays was another problem. In such situations, banks found a way to reduce the workload from day to day banking by enabling wired money transfers.
Wired money transfer or EFT (Electronic Fund Transfer) facilitates money transfer in real time. To avail this service, the customer must have certain facilities in his/her bank account such as mobile banking, internet banking, and debit/credit card. Not all of these additional services are required for an EFT but the customer should have at least one of them. There is a vast area to cover in the field of EFT but in this page, the focus will be on IMPS.
IMPS means Immediate Payment Service. This is another type of EFT that transfers funds in real time. Although there are other mediums of EFT available in the country right now such as NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement) but IMPS has become widely popular in a short span of time and especially among the younger population of the country.
This is because IMPS is a no-fuss service and does not require complete bank details of the beneficiary. The service runs through mobile banking facility provided by the bank and requires only the bank account registered mobile number and MMID of the beneficiary to receive funds. Another reason for IMPS being so popular is that it is available 24/7 and 365 days. This means you can send and receive money seamlessly regardless of bank holidays and public holidays.