IMPS Full form

Instant Payment Service is the full form of IMPS.

IMPS is an online/electronic money transfer service that allows you to send money from one bank to another (inter-bank electronic fund transfer) using a variety of devices such as your phone, laptop, tablet, or ATM. We can transfer the funds in a matter of seconds.

Features of IMPS

  • NPCI (National Payments Corporation of India) looks after it. It is completely safe and secure.
  • When compared to RTGS and NEFT, this is the fastest service.
  • Services are available 24/7/365 because it is an online process.

Eligibility criteria required for banks (IMPS)

RBI requires a license for prepaid payment instruments.

Methods to do IMPS

IMPS requires two things: registration and a device (mobile, laptop, or ATM).

For the transactions, there are two options:

  1. Mobile Number and MMID – To follow this method, both Beneficiary and Remitter should have MMID and mobile number. This method is known as PP(person to person).
  • Then, we must link our cellphone number to our bank account through mobile banking services.
  • By sending SMS to their respective bank, we can generate MMID (Mobile Money Identifier, which is a 7-digit unique code).
  • We can conduct transactions by installing bank or UPI programs on our devices (every bank has an app, and UPI apps include Google Pay, Phonepe, Paytm, and others).)
  1. Using the following 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.

PA Method Requirements:

  • Name of Beneficiary
  • Bank account number of the beneficiaries
  • IFSC code

It is a straightforward technique of transferring funds simply entering the Beneficiary’s information.

Advantages of IMPS

  • Money can be transferred in a matter of seconds using IMPS.
  • The procedure is straightforward, safe, and secure.
  • Service is available 24 hours a day, 7 days a week, 365 days a year.
  • The bank charges a small fee (typically between Rs. 5 and 15).

Disadvantages IMPS

  • A transaction’s limit ranges from Rs. 1 to Rs. 2 lakh (varies by bank).
  • Restricted to Indian citizens only.
  • You could get into trouble if you share your OTP/MPIN with others.
  • We are unable to conduct offline transactions using IMPS.

Conclusion

Banks provide services that save us time and money by utilizing cutting-edge technology. We must always cooperate with them and use this technology correctly.

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