The Full Form of IMPS is Immediate Payment Service.
IMPS is an online/electronic process of money transfer from one bank to another bank (inter-bank electronic fund transfer) through various devices like- Mobile, Laptop, Tablet, Atm. Well, we can transfer the amount within a few seconds.
Features Of IMPS
- Maintained by NPCI (National Payments Corporation of India). It is safe and secure.
- The fastest service compares to RTGS & NEFT.
- Since it is an online process, services are available 24x7x365.
Eligibility Criteria Required For Banks (IMPS)
Prepaid payment instrument license is mandatory from RBI.
Methods To Do IMPS
Registration and Device(Mobile, Laptop, ATM) are the two things compulsory for IMPS.
Two options are available for the transactions:
- MMID and Mobile Number – To follow this method, both Beneficiary and Remitter should have MMID and mobile number. This method is known as PP(person to person).
- First, we need to register our bank account to mobile bank services and then link to our mobile number.
- We can generate MMID (Mobile Money Identifier is a 7 digit unique code) through mobile by sending SMS to their respective bank.
- We can do transactions by downloading bank or UPI applications on our device (every bank has its application, and examples of UPI are Google pay, Phonepe, Paytm, etc.)
- Through bank account number: – If a beneficiary doesn’t have a mobile number or mobile number is not linked with the bank account, then the transaction through the PA (Person to Account) method is possible.
Required for PA method:
- Name of Beneficiary
- Beneficiary’s Bank account number
- IFSC code
It is a simple method through which the remitter can transfer money by entering the Beneficiary’s details.
Advantages of IMPS
- IMPS can transfer money within a few seconds.
- The process is simple, safe, and secure.
- Service available 24x7x365.
- Very nominal charges apply by the bank (usually Rs. 5 to 15).
Disadvantages IMPS
- The limits of a transaction are Rs. 1 to Rs. 2 lakh (varies from bank to bank).
- Restrict to within-country only (India)..
- Sharing OTP/MPIN with others may put you in trouble.
- We cannot do offline transactions through IMPS.
Conclusion
Banks are giving facilities using the latest technology that saves our time and money. We must use this technology correctly and always cooperate with them.
