IMPS(Immediate Payment Service)
IMPS stands for Immediate Payment Service. It is an inter-bank electronic funds transfer service where transactions can be initiated online through net banking or mobile phones. The service is available 24/7 throughout the year including bank holidays. It is managed by the National Payments Corporation of India (NPCI) through its existing NFS(National Financial Switch).
What is the advantage of using IMPS?
1. IMPS is open for use 24 hours a day, 7 days a week, including Sundays and bank holidays. So user need not to wait fore the banking hour of online transfer and if the amount is to be transferred urgently, IMPS is the best mode.
2. Some banks charge a nominal fee for using IMPS depending on the amount to be transferred. IMPS is instant and in real time and unlike RTGS and NEFT, your order is processed as soon as you initiate it, rather than being bundled with other transactions.)
What is the requirement for IMPS?
For order initiated online:
1.The branches of originate funds transfer through IMPS has to fill an application form details like Beneficiary’s account number, IFSC number of beneficiary branch.
For order initiated on phone:
1.Beneficiary’s registered mobile number and
2.Beneficiary’s MMID (Mobile Money Identifier)
Objectives of IMPS
1) Immediate payment service facilitates bank customers to use their phones for accessing their bank accounts and to carry out online money transfer.
2) It makes payment simpler just with the mobile number and MMID (mobile money identifier) of the Receiver.
3) It also serves the goal of Reserve Bank of India (RBI) in interbank electronic fund transfer services.
4) Immediate payment service aims to build the foundation for a full range of cell phone based Banking services.
5) It is beneficial where instant payments are a matter of concern.