Full form of IMPS is Immediate Payment Service. It is the immediate fund transfer that encourages quick and simple fund transfer without any issues.
Most of the people don’t have the foggiest idea about the IMPS full structure or its highlights and regularly mistake it for different methods of funds transfer, for example, NEFT and RTGS. In any case, it is totally unique in relation to the next two.
IMPS is an inter-bank electronic fund transfer framework that utilizes cell phones as a stage for the transfer procedure. IMPS is not quite the same as NEFT and RTGS as it is accessible every minute of every day and 365 days despite the bank weekends or holidays.
What is the history of IMPS?
It is based on the current NFS (National Financial Switch) and is supervised by NPCI (National Payments Corporation of India).
IMPS began in 2012 with a pilot from NPCI for mobile payment methods with 4 banks, that are SBI bank, Bank of India, Union Bank of India and ICICI Bank. NPCI then extended IMPS and included HDFC Bank, YES Bank, and Axis Bank succeeding that year.
On 22nd November, IMPS was launched in public and now incorporates 53 commercial banks, 101 banks that include districts/ urban/ rural and cooperative banks.
How does the IMPS service work?
IMPS is more widespread on cell phones however it can likewise be utilized through work areas, PCs, and tablets. The IMPS service works in contact with VPA (Virtual Payment Address), for example, a unique virtual payment address that transfers cash straightforwardly from your connected bank account. On cell phones, you just need to create a unique 7-digit MMID (Mobile Money Identifier). From that point onward, you can benefit the IMPS service according to the mobile app of your bank. The highest money transfer limit of IMPS for ordinary use goes from INR 10,000 to INR 2 lakh as per various banks. Also, there is no base limit for transactions in IMPS.
Users can decide to transfer the money using the 10-digit phone number of the recipient or bank details, for example, account number and IFS Code. In any case, moving cash through phone number is simpler as the odds of errors are low. This is because inserting complex bank details can prompt errors. Utilizing a phone number for transactions is a superior thought as both the participants don’t have to share their private bank details with one another.
At times users commit errors in entering the phone number or bank details and in such conditions, circumstances can get complicated. In the event that the phone number or bank account number doesn’t exist, either the assets would not transfer or if there should arise an occurrence of a transfer, automatically it will be refunded. Nonetheless, on the off chance that you have entered a wrong yet existing phone number or bank account number then the money that has transferred can only be refunded by the recipient. This is the reason it is in every case better to double-check the data of the account number or the phone number.
Important features of the IMPS
- Immediate Fund Transfer: As the IMPS full structure recommends, fund transfer through IMPS is easy and quick. The IMPS service utilizes cell phones as a channel for getting to the bank accounts and makes inter-bank fund transfers in a protected manner.
- Accessibility: IMPS is accessible every minute of every day and 365 days empowering clients to transfer funds whenever and from anyplace. You don’t need to go to the bank and follow a detailed procedure for making payments to your customers or making any funds transfer. The IMPS service works flawlessly during the time even on bank and public holidays.
- Confirmations: Both the sender and beneficiary get an immediate credit and charge notification when the funds are transferred. This implies you don’t need to stress over whether the funds are moved or not. The IMPS service deals with its procedures quite well.
- Versatility(flexible): Versatility is the fundamental element of IMPS as it tends to be utilized in different modes too. Users can utilize IMPS for P2P funds transfer using the phone number or by utilizing the details of the bank account. IMPS can be utilized for P2M (Person to Merchant) installments too.
- convenience (Usability): IMPS isn’t constrained to funds transfer entirely. It can be utilized for different purposes also. The IMPS service can be utilized for insurance premium installments, internet shopping, OTC installments, service charge payments, travel and ticketing and paying expenses to schools, and colleges.
What is the limit for IMPS service?
Using IMPS, any user can transfer cash as low as INR 1, which makes it a superior alternative than NEFT and RTGS for littler installments. As NEFT doesn’t transfer money immediately and RTGS don’t provide money transfer beneath Rs. 2 lakh.
IMPS max Limit per transaction is Rs. 2 lakh. Several transactions might be allowable relying on your bank and IMPS Limits endorsed.
How can I get IMPS transaction details?
The tracking of the IMPS reference number should be possible online by signing into your mobile or online bank account and selecting the “Know your MMID” choice. You can likewise send an SMS to the number gave by your bank to IMPS reference number tracking. You will be able to get your MMID by an SMS.
FAQs on IMPS
Is IMPS transfer safe?
IMPS is safe, reliable and financially savvy. IMPS has no min amount limit on transfers of funds. IMPS is accessible 24×7 and even on holidays and weekends. The user can make intrabank as well as inter-bank fund transfers.
What is IMPS SBI?
The State Bank of India offers IMPS Services for users. IMPS is an immediate fund transfer service that can be done using cell phones, web banking or even ATMs. To do an IMPS fund transfer, the details required are recipient name, account number, branch name, and IFSC code.
Is IMPS chargeable?
IMPS offers instant transactions and the service is chargeable. The charges applicable to your IMPS fund transfers are standard and are very nominal. The present IMPS charges for the majority of the banks start as low as Rs.5 per transaction.
Are UPI and IMPS the same?
IMPS offers instant transactions and the service is chargeable. The charges applicable to your IMPS fund transfers are standard and are very nominal. The present IMPS charges for the majority of the banks start as low as Rs.5 per transaction.
Which transaction mode is safe & preferable IMPS or Neft (national electronic fund transfer)?
If your transaction sum is between INR 10000 and INR 2 lakh, at that point IMPS is preferable because the service given to you is on an immediate premise with a similar service tax as applicable for NEFT.
You may also be interested to know about our article on How to save income tax in India.
