What is IMPS and How does it work?

IMPS, What is IMPS, How does IMPS work, Full form of IMPS, Meaning of IMPS, How to transfer money through IMPS, Features of IMPS, Benefits of IMPS

Do you know What is IMPS? There will be many people among you who must have used IMPS to transfer money, but do you have complete knowledge about it. If not then don’t worry because today we are going to know about this topic. As we know that nowadays everything is available online. Similarly, banking facility is also available online these days. Today you can do all your banking work while sitting at home. Such as fund transfer, demand draft, passbook printing etc. Similarly, there are many services that we use for our convenience such as RTGS, NEFT and IMPS.

IMPS was first introduced in 2010. It has been introduced after NEFT and RTGS, so it is more famous among the people. Using this, one can transfer money from one account to another in single stroke. That’s why today I thought why not give complete information about What is IMPS?, So that you do not need to see or read about it in other places. Then without further delay let’s start and know about What is IMPS and How it works.

What is IMPS?

First of all the full form of  IMPS is Immediate Payment Service. We can also call this as Instant Payment Service. IMPS is such a banking payment system service under which you can send money from one account to another in real time. Where it takes some time to send money in NEFT and RTGS, while sending money through IMPS, it gets completed immediately, so that we do not have to wait any longer.

National Payment Corporation of India first started the Immediate Payment Services (IMPS). Through this service, you can transfer electronic funds to any bank through mobile phone, Internet, ATM anytime round the clock.  This services was first started as a pilot project in August 2010 and was later launched as a full service on 22 November 2010. Although, initially it was launched only by some banks like State Bank of India, ICICI Bank, Bank of India, but later other private banks like Axis Bank and HDFC Bank also started this service. Now the complete list of all the bank providing this service is available on the website of NPCI.

What is the full form of IMPS?

The full form of IMPS is Immediate Payment Service.

What does IMPS mean?

IMPS is a type of instant payment service option. Through IMPS, you can transfer from Rs 1 to Rs 2 lakh to any bank account in the country.

How to transfer money through IMPS?

By the way, there are many ways through which you can transfer money in IMPS, today we will get complete information about them which you can use further.

IMPS through Bank Account and IFSC code

Using IMPS through bank account and IFSC details, this is a very common way to transfer funds. Through this method, you can easily transfer money to anyone who has an account with any bank. For this you just need a good internet connection, whatever it may be net banking or mobile-banking data,  it does not matter. Here below I have tried to explain the process to you:

1. First login to your net banking account.

2. After that fill all the details of whom you want to add as beneficiary and add them as new beneficiary. I have already given you the information about how to add beneficiary. Here you just need to check the correct details. You may receive OTP on your mobile number during the beneficiary addition process.

3. Once you have added the beneficiary, then you can select the details and mention the amount you want to send. Apart from this, you can also write some important comments.

4. After this you need to verify the details. After that once again verify all the details carefully one last time for your satisfaction.

5. Finally confirm it.

6. By doing this, the money will be debited from your account and credited to the receiver’s account in few moments.

7. After this you will receive an SMS where the details of your transaction will be there. Keep it safe because if there is any problem regarding payment, then you can show this reference number to the bankers.

IMPS through Mobile Number and MMID

Before understanding this process, you need to understand how this how this MMID works.

MMID and IMPS

If you want to use IMPS then you must have a bank account which is enrolled for mobile-banking services with your concerned bank. If you have not yet registered your mobile number with your bank, then you will have to submit the application form by visiting the nearest branch of your bank to avail this services. These forms are available on the bank’s official websites or net banking website which you can easily fill.

Once you have registered your mobile number with the concerned bank, then they will provide you a unique seven digit MMID code which you can use for instant transfers via IMPS. The first four digits in this MMID code are the unique identification number of the bank that is providing you this IMPS facility. Even if you have multiple bank accounts, your bank will allocate a unique MMID number for all your bank accounts. Since your MMID number is a combination of your account number and mobile phone number, you can easily understand which MMID code refers to which bank account.

There are many ways by which you can generate MMID code according to your bank. Some banks auto-generate your MMID code when you register you mobile number for mobile banking. Some banks allow you to generate seven-digit MMID code on SMS request while in some you have to put online request to generate it from your net banking account.

How to transfer fund through MMID

1. First of all log in on your mobile banking app.
2. After this go to the fund transfer section and select IMPS.
3. After this add account number, mobile number and MMID code of your beneficiary and initiate your transfer.
4. You can verify this transaction again through an OTP and mPIN.
5. Money is debited from your account and credited to the receiver’s account immediately in a few seconds.
6. After this you will receive an SMS where all the transaction details are mentioned. Keep this reference number safe so that is there is any issue then you can show it to the bank.

What are the Benefits of IMPS?

IMPS fund transfer service has changed the definition of online transaction. Today it is providing many benefits to its users if their users have activated online/mobile banking services. Here I am going to tell you about the benefits of IMPS:

Instant Fund Transfer

With its help, you can transfer funds in real time. For this you just need the receiver’s account number and mobile number. All these transactions happen in very short time.

Easy Process

These  whole processes are completed very quickly and with this they are also user-friendly. For this you just have to add beneficiary details like we do in NEFT/RTGS and wait for it to be activated. Some banks take maximum 30 minutes to transfer funds to the new beneficiary. That’s why you have to keep details like their name, account number, IFSC or MMID (Mobile Money Identifier) code, bank account type, handy in front of you.

Round the clock

Time never creates and obstacle between IMPS because you can do IMPS Transfer at any time whether it is Sunday or any Public Holiday.

Money Transfer Channels

You can use many methods to send money in IMPS like net banking, mobile banking, ATMs or SMSs etc. Even where there is no internet facility, you can send money through SMS in IMPS.
Open to all: Resident or non-resident Indians (NRIs) can also use this service to transfer money.

Security First

Money transfer in IMPS is very secure, in which banks validate your transaction only after checking many times. But keep in mind that if you have filled any wrong beneficiary details, then this fault will be yours only. Still, if you have mistakenly sent money to a wrong beneficiary account, then you can contact your bank branch for a refund.

List of Banks that provide IMPS money transfer facility in India

Andhra Bank, Allahabad Bank, Axis Bank, Bandhan Bank Ltd., Bank of India, Bank of Baroda, Bank of Maharashtra, Bank of India, United Bank of India, Yes Bank, UCO Bank, Federal Bank, HDFC Bank, IDBI Bank, ICICI Bank, Indian Overseas Bank, Indian Bank, IndusInd Bank, Nainital Bank, Punjab National Bank, Union Bank of India.

FAQ

1. Are there any charges for receiving money during IMPS?
Ans. No, no changes have to paid to get money during IMPS.

2. Do different banks impose different IMPS charges?
Ans. Yes, different banks impose different IMPS charges.

3. Is there any transaction limit for IMPS?
Ans. Yes, according to banks, there are different minimum and maximum limits.