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:
- 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).)
- 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).
- 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.
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.