IMPS Means

IMPS is built on existing NFS (National Financial Switch) system of the country and is maintained by NPCI (National Payments Corporation of India). IMPS started with a pilot from NPCI for mobile payment systems in 2010. The system initially included 4 banks viz. SBI Bank of India, Union Bank of India and ICICI. After successful analysis, IMPS was expanded and included other banks such as YES Bank, HDFC Bank and Axis Bank later the same year. The service was officially launched to the public on 22^nd November 2010 and is currently successfully running with 53 commercial banks along with 101 rural, urban and cooperative banks in the country.

IMPS is already popular among most mobile phone users but it can also be used through the web. In addition, IMPS also facilitates UPI (Unified Payment Interface) payments.

Using IMPS through phone means, you must have mobile banking facility offered by the bank. This facility is usually free of cost and only a few banks charge a minimal annual fee. After that, you can download the mobile banking application of the respective bank. The last and most important thing you have to do is to generate a 7-digit MMID (Mobile Money Identifier) as you cannot transfer funds in any condition without this unique ID. This works as a virtual address for both sending and receiving funds.

How to Transfer Money Using IMPS:

Transferring funds using IMPS is easy. You have to open the IMPS fund transfer interface in the mobile app and choose the option of ‘send money.’ Then you have to enter the registered 10-digit mobile number of the user along with his/her MMID. You can ask the beneficiary to share their MMID. You can also choose to transfer money using bank account number, IFS code and name of the user if he/she does not have MMID. You just have to enter the amount you wish to transfer and confirm the process.

You should always check all the details twice or thrice before confirming the payment. This is because even a slight mistake can lead to a wrong money transfer. However, you need to know of the list of steps you should follow to use the IMPS interface in your mobile application.

• Install the mobile banking application of the respective bank. For example – iMobile from ICICI.

• Log in using the User ID and Password provided by the bank. The app will automatically fetch your bank details as soon as you log in.

• Go to the IMPS option in the app and follow the prompt to generate your unique MMID.

• You are all set to use IMPS as soon as your MMID is generated.

• Now to transfer funds, your first step should be to enter the MMID of the receiver. Without it, you cannot transfer the funds.
• Then you have to enter the required details such as Name of the beneficiary, registered mobile number of the beneficiary, beneficiary MMID, and the amount to be transferred.

After entering details, you should double check the details and confirm the transaction.

As mentioned, IMPS means Immediate Payment Service which translates into instant money transfer. Despite being the fastest medium of money transfer, IMPS is a form of wire transfer that uses the internet as a medium to transfer information. In such situations, you have to be careful and consider a number of factors while using IMPS. While using any type of wire transfers including IMPS users have to pay attention, as there are always chances of committing mistakes. Some of the important factors are mentioned here.

• Double Check the Details: As per the RBI guidelines, the individual who is sending money has to take full responsibility in the case of a wrong transaction. If any of the details entered by the user does not exist then the amount will be refunded automatically. However, in the case of an unintentional transaction, the amount cannot be refunded without the consent of the beneficiary. 

• Prefer the Short Method: Sending money through IMPS means using the mobile number and MMID, which is always safer. This is because a wrong mobile number or MMID will never match with each other and your transaction will fail automatically. On the other hand, using a wrong account number may lead to a false transaction as there may be individuals with similar names in the same branch. 

• Read the Terms and Conditions in Advance: You should read all the terms and conditions in advance before using IMPS as there might be various factors that you do not know such as charges, transaction limit, etc. Knowing all the details will let you manage your fund transfer operations better. 

• Online Frauds: Everything has its pros and cons and IMPS is not an exception. Do not fall for fishy online ads that try attract you to buy a product or avail a service and insist on paying up front. Many fraudsters and hackers use this tactic to con people. They even give their MMID and phone number which is issued against fake IDs and fake bank accounts. Always make sure that the website asking you to pay through IMPS is authentic and in the business for a considerable period of time. 

IMPS Limit and Charges:

Per day transaction limit and charges for IMPS is largely subject to the member banks. NPCI does not interfere directly in those aspects. The per day transaction limit and charges of some member banks are explained here.

Despite being a fund transfer service, IMPS contains some other important features as well. Such features make it a favourite for all. Some of those features are explained here.

• Real-Time Fund Transfer: As the name IMPS means Immediate Payment Service, it transfers funds in real-time. This is completely opposite to NEFT that performs remittances in batches. Fund transfer through NEFT is done within a specific time slot each day and it does not work in real-time. On the contrary, money transfer through IMPS is done instantly. In the case of server downtime or any technical problem, the transaction does not take more than an hour to complete. 

• Always Available: Whether it is midnight or early in the morning, your funds will be transferred immediately through IMPS. You do not have to remember bank timings or holidays as well. This is among the highly significant features of IMPS as it empowers the account holder to access and use his/her own money anytime and from anywhere. 

• Multi-Platform Support: IMPS supports both mobile and internet platforms. You can choose to use any of them as per your convenience. However, use of IMPS through web requires bank details of the beneficiary such as account number, IFS code, name, mobile number, etc. 

• Confirmations: You will receive confirmation messages both from the bank and the application as soon as the amount is debited from your account and credited to the beneficiary’s account. Both sender and receiver receive confirmations which eliminate the scope for confusion or miscommunication. This way both the parties are fully aware of the actual situations. 

• Safe and Secure: IMPS allows you to perform financial transaction in your private space. You use mobile phone or your PC for the purpose and this creates a safer environment than a bank where so many people can easily view your bank details while you are filling up the depositing slip. In the same way, the data travelling through the internet is protected through encryption and firewalled servers that protect your vital bank information. Such features make IMPS a safer medium of fund transfer than any other.

• Versatile: IMPS is a versatile payment service. It offers more than just money transfer which is a P2P (Person to Person) fund transfer medium. IMPS allows you to make P2M (Person to Merchant) payments as well. You can use IMPS to make payments for online shopping, paying school/college fee, utility bills, insurance premium payments, OTC payments, ticketing, etc. 

• Easy to Use: Using IMPS is quite easy. The mobile application of your bank works similar to any other mobile app. You just have to enter the right details and you are good to go. Entering minimal details such as mobile number and MMID is all you have to do to send money. 

• No Requirement for Confidential Details: IMPS fund transfer through mobile does not require any confidential details such as bank account number, IFS code, etc. from both parties. This makes the whole process a lot safer as no one can misuse the information. 

• Cost-Effective: IMPS is an inexpensive mode of fund transfer. Other fund transfer mediums such as NEFT and RTGS charge significantly higher than IMPS. The maximum fee for fund transfer in IMPS does not go beyond Rs. 25 + GST which is fairly low for a medium which transfers money in real time.

People are always cautious about online money transfers and they have so many questions in their minds. Some of those frequently asked questions are answered here.

Q. Is there any monitoring authority for checking the per day transaction limit of every customer?

A. No, monitoring each and every customer’s per day transaction limit is an intensive task and it is not possible either through manual or automatic oversight. Such information is embedded in bank servers and in the mobile application of the respective banks. You will not be able to make any transaction as soon as you reach your daily limit.

 Q. Is it compulsory to register for mobile banking to use IMPS?

A. No, it’s not. It is essential to register for mobile banking if you are using a mobile phone for fund transfer. Customers can access IMPS from their bank branch, ATM and internet banking. 

Q. Is there any feature to stop payment on IMPS?

A. No, IMPS is an instant payment service which transfers funds as soon as you confirm the payment. It cannot be stopped once initiated.