Just like other modes of money transfer, IMPS is another method that allows users to transfer funds from one bank to another. IMPS stands for Immediate Payment Service, implying that using this method, you can transfer funds immediately.
IMPS was brought into existence in the year 2010 by NPCI (National Payment Corporation of India) and RBI (Reserve Bank of India). It is considered to be one of the most reliable methods of transferring money between bank accounts.
To enable an IMPS transaction, the involvement of the following major parties is a must-
- Remitter- sender of the money
- Beneficiary- receiver of the money
- Bank- facilitator of the immediate payment service (IMPS)
- NFS- National Financial Switch
Features of IMPS
Before you begin using IMPS as a method of online money transfer, here are all the points that you should know-
- IMPS transactions have a daily maximum limit of Rs. 1 Lakh
- The charges on transactions made through IMPS vary between Rs. 5 to Rs. 15, depending on the bank’s conditions
- IMPS transactions may also levy an additional service tax
- Immediate payment service is a robust, real-time fund transfer option that offers 24*7 inter-bank fund transfer facility
- IMPS offers instant transfer of funds within banks across the country, which is safe and economical for all the users
Advantages of IMPS
IMPS has been one of the most common methods of transferring money ever since its launch. Here’s why-
- IMPS is fast, safe and reliable method of transferring money
- The immediate payment service works on both, internet banking and mobile platforms
- This immediate payment service can be accessed at all times; even on public and bank holidays
- Users can add beneficiaries through IMPS mobile platforms only by providing the receiver’s mobile number and MMID (Mobile Money Identifier)
- IMPS transactions made through mobile phones do not require bank account numbers
- Upon completion of an IMPS transaction, both the payer and the payee are notified by the bank immediately
- Apart from transferring money from one bank account to another, IMPS can also be used to receive payments, make payments to other merchants, perform mobile banking transactions, etc.
How to Transfer Funds Through IMPS?
To transfer funds from one bank account to another via IMPS, you should follow these steps-
- Login to your mobile/internet banking account
- On the main page that appears, click on ‘Fund Transfer’ option
- Select ‘IMPS’ as your method of fund transfer
- Provide the beneficiary’s MMID and your MPIN to proceed
- Enter the amount that needs to be transferred
- Click on ‘Confirm’
- You might be asked to authenticate the transaction by submitting the OTP sent to your registered mobile number
- Enter the OTP and complete the transaction
The amount will be transferred to the receiver immediately and both, the receiver and the sender will be notified. Note that you will be asked to provide the beneficiary’s MMID only if you are transferring the funds via mobile banking.
If you are transferring the funds through internet banking, then you will have to provide the receiver’s bank account number, IFSC, etc. in order to complete the transaction. In such cases, you will have to add the beneficiary before you begin to transfer the money.