You might have often heard people speak about digital and online banking and how it is much more convenient than ordinary banking in many ways. True to the praise, digital banking has opened up many new avenues for banking customers, such that they are now able to utilise the services of the bank in a much wider way than earlier. One of the latest and most attractive ways to conduct a digital transaction is NEFT, RTGS and IMPS. Each of these methods hold their own share of advantages and convenience for customers. Let us get to know more about the entire system of IMPS and MMID in banking.
The system of IMPS
Expanded as Immediate Payment Service, IMPS is an instant and electronic method of conducting an online transaction. This fund transfer service can be initiated and completed through a smart phone or even through a desktop in just few clicks. IMPS is one of the most attractive ways to complete a transaction and remit funds from one account to another.
A customer needs to be holding a bank account for using the IMPS service. Also, it is mandatory for a customer to register himself for the internet banking as well as mobile banking service, in order to be able to use the IMPS service. In order to transfer money using IMPS, a customer needs to provide the account number of the payee, and his IFSC code or else, the mobile number of the payee and the MMID code. Now let us understand what is MMID in banking?
What is MMID?
Expanded as Mobile Money Identifier, a MMID code is a seven digit code which is issued by a bank upon registration for the same. In case the parties to the transaction are making use of mobile number to transfer the funds, both sides of the parties will need MMID code, in order to complete the transaction. Without this MMID code, the parties will have to exchange their bank account numbers and the associated IFSC code, if they are willing to make exchange of money through their account. For each of the mobile number of the customer, the bank will allocate one MMID code. Hence, it is up to the customer to choose which bank account he wishes to make the transfer of funds from. As a result, the amount shall be deducted from that account only and hence, only that account’s MMID code shall be used by the customer. Since the mobile number of the customer and his related MMID code work in conjunction in the case of a digital payment exchange, there is no chance of any mistakes. As soon as the customer begins using the mobile banking services of the bank for digital banking, he will be able to view and access the related MMID code with that account. As per the regulations of RBI, one can make a transfer of sums up to INR 50,000 in a single day when using his mobile banking application.
The benefits of using MMID code and IMPS service
IMPS is the most preferred method of carrying out digital transactions as it is available 24 x 7 and even on a holiday. Using IMPS, the funds get transferred to another account instantly. This means that the sender and receiver can receive almost instant intimation about the fact that a transfer of money has taken place. This is very crucial and relevant in the fast paced era that we survive in. As long as you are not willing to share your bank account number or the IFSC code with another party, you must remember that MMID code is the way out for you. MMID helps to transfer money electronically by simply letting the other party know your mobile number, so that one can prevent a situation where he has to face the risk of frauds. Thus, MMID code solves one of the major issues that we face in the modern times.