The IMPS full form is Immediate Payment Service. It is an instant payment service launched by the National Payments Corporation of India (NPCI) on November 22, 2010. Registering for IMPS allows you to transfer funds instantly from one bank to another as well as to RBI-authorised PPIs (Prepaid Payment Instrument Issuers) in the country. IMPS mode of payment can be used for making your debit card and credit card payments.
Now that you know what IMPS means in banking, let us take a look at the features and benefits that make it an attractive choice.
The features and benefits of IMPS which makes it a popular mode of fund transfer are mentioned below:
Staying true to its name, IMPS allows you to transfer funds in an instant. This is because IMPS transactions occur individually and not in batches. You can avail IMPS via online banking, mobile phone, ATM, or SMS.
IMPS is available 24x7 throughout the year, even on bank holidays. You can use the service to transfer funds anytime and from anywhere.
Both you and the beneficiary are notified when the amount is debited from one bank account and credited to the other. As a result, you do not need to worry about whether the transaction was successful or not.
IMPS can be carried out both person to person and person to merchant. All you need is the mobile number or the bank account details.
IMPS is carried out over encrypted servers, making the transfer of funds safe and secure. Payments occur electronically using multi-step verification.
It saves time and effort as it does not require you to fill up lengthy forms with confidential information. All you need is the beneficiary’s name, mobile number, and MMID. Alternatively, you can transfer funds via IMPS using just the beneficiary account number and IFSC Code.
Along with immediate transfer of funds, IMPS also allows you to pay insurance premiums, utility bills, ticket charges, fees, online purchases, etc.
Banks charge online a minimal amount for availing IMPS facility. In some cases, these minimal charges too are waived off for transactions. As a result, it is one of the most cost-efficient means of transferring funds.
If you wish to use IMPS mobile banking to send money, you will need to use the MMID (Mobile Money Identifier) and an MPIN to get registered. MMID is a unique seven-digit code linked to your mobile number that is generated once. You would also need to enter the IMPS beneficiary details that include the beneficiary’s mobile number and MMID.
For fund transfer, you can also use a combination of the IMPS account number and IFS Code or mobile number and MMID. Both yours and the beneficiary’s details will be required for the purpose. If you are using an ATM to avail IMPS, you would need to authenticate using your ATM PIN.
Once you complete an IMPS transaction by authenticating the payment, the bank provides you with a 12-digit number that is displayed on the screen. This is known as the IMPS reference number. You can find the number on your bank account statement too against the IMPS transaction ID.
Before you choose IMPS as your preferred mode of point, there are a few things you need to keep in mind. They are as follows:
For the transfer of funds quickly and efficiently using your phone, IMPS requires you have a mobile banking account. You need to download your bank’s application on your phone and link your account with it to be able to send and receive money.
Once you make a transaction using IMPS, you cannot reverse it. As a result, it is critical that you check and recheck the details entered before submitting the payment request. If you mistakenly transfer the money to the incorrect account and are unable to convince the beneficiary to return your money, your funds will be lost.
You must have a stable internet connection to avail IMPS fund transfer via mobile banking. Slow or interrupted connectivity can cause lags and you might mistakenly submit fund transfer requests more than once.
More About Payments & Other Credit Cards
IMPS, short for Immediate Payment Service, is a payment service to transfer funds instantly from one bank account to another or to RBI-authorised PPIs. The service is available round the clock, including on bank holidays. You can avail of IMPS transfers through online banking, mobile app, ATM, or SMS.
The IMPS full form in banking parlance is Immediate Payment Service.
IMPS is available 24x7, including on bank holidays. It can be availed via online banking, mobile phone, ATM, or SMS. You can use it to transfer funds instantly in a safe and secure manner.