IMPS

IMPS or Immediate Payment Service transfers money from one bank account to another through the Indian banking system. The system enabled 24x7x365 real-time, interbank, electronic transfers where only NEFT and RTGS services were available in India. Citizens can access the facility via various channels, such as mobile phones, ATMs, the Internet, and SMS.

IMPS is based on National Financial Switch (NFS), owned by NPCI (National Payments Corporation of India), and has been approved by the Reserve Bank of India (RBI). In 2012 IMPS was introduced as a pilot program by NPCI in which only four banks offered the facility — State Bank of India, Bank of India, State Bank of India, and ICICI Bank.

What is Immediate Payment Service?

The best answer to What is Immediate Payment Service is that Immediate Payment Service is a service provided by banks to ensure the transfer of interbank funds in real-time. 

Immediate Payment Service aims to make electronic transfers easier and more convenient for customers and support RBI’s policy of electronic filing for store payments. IMPS has built the foundation for a comprehensive list of mobile banking services.

Four major Stakeholders are involved in the implementation of the IMPS project:

• Sender (sender)

• Beneficiary (Recipient)

• Banks

• National Financial Switch (NFS)

What is the difference between IMPS and NEFT?

After having an idea of What is Immediate Payment Service. Let’s discuss What is the difference between IMPS and NEFT? Although NEFT and IMPS are two modes of transfer between banks, they differ in their methods. NEFT activity can only be started during business hours. Work will only be completed on the next business day to start NEFT work after business hours. No active operating funds.

However, transfers can be started and terminated at any time regardless of bank operating hours in the case of IMPS. In addition to earning transactions, the beneficiary receives the funds immediately in his account.

IMPS Timings

IMPS, in general, can be done 24/7. Some banks may have time constraints for adding new recipients to make new transfers. Another bank imposes a time limit on adding beneficiaries due to IMPS transfers.

For example, PNB only allows you to add a new beneficiary from 6 a.m. to 8 p.m. If you add a new beneficiary after 8 p.m., it will be available on IMPS transfers only after 6 a.m. the next day. Therefore, check with your bank about IMPS transfer times.

IMPS charges in India

Everything IMPS does link to a specific payment. The IMPS charges in India depend on the amount to be transferred. In addition, excise duty is also applicable to 18%. If the transaction is under or equal to 10000 Rs, the charge will be 2.5 Rs; if the transaction ranges from Rs.10,001-Rs.1 lakh, the charges will be 5Rs, and if the transaction ranges from Rs.1 lakh-Rs.2 lakh the charges will be 15Rs. The charges may vary depending on the individual bank’s discretion.

Details Required for IMPS

If you wish to use IMPS banking to send money, you must use MMID (Mobile Money Identifier) and MPIN to register. MMID is a unique seven-digit code connected to your single-generated mobile number. You will also need to enter IMPS beneficiary details, including the beneficiary’s mobile number and MMID.

To transfer from a wallet, you can also use the IMPS account number, IFSC code or mobile number, and MMID. Both your information and the beneficiary will be required for this purpose. If you are using an ATM to obtain IMPS, you must authorise it using your ATM PIN.

Transaction Limits

Typically, the transaction limit for IMPS transfers is set to Rs.2 lakh. However, banks may specify their maximum IMPS performance. Also, transaction limits may be tightened for the first few days after adding a new beneficiary. Check out with your bank and confirm the limit before you start work.

Conclusion

IMPS provides a robust and real-time wallet that provides instant, 24X7, an interbank electronic wallet transfer service that can be accessed on multiple channels such as Mobile, Internet, ATM, and SMS. IMPS is a dynamic service that allows for fast transfers to banks across India that are safe and economical. In the event that the IMPS operation fails and no account is deducted, you can try to complete the operation in a few minutes. However, if there is a deduction in your account, you can check your account after two working days to see if the money has been refunded. In the event that you and the beneficiary did not receive any money, you may contact customer care to assess the employment status.