Full Form of IMPS

Full Form of IMPS – Immediate Payment Service

The full form of IMPS is an Immediate Payment Service. It is one of the systems used for the purpose of interbank transfer of funds instantly electronically through different channels like mobile banking, internet banking, ATM, etc. where the facility of such transfer is available whole year 24/7, including on the public holidays and weekends.

History of IMPS

In the year 2010, the facility of the IMPS was started on a pilot basis from the National Payments Corporation of India (currently managing the IMPS) initially with banks that include Bank of India, State Bank of India, ICICI Bank, and the Union Bank of India for the mobile payments. After around a year, some other banks were also added. After successfully running the pilot project, the IMPS facility was launched to the public on 22nd November 2010.

Features of IMPS

The following are the different features of the IMPS:

  • Unlike RTGS and NEFT, IMPS transactions are not time-bound. Customers can freely initiate IMPS transactions as and whenever they feel like without having the compulsion to rely on banking hours
  • IMPS payments can be conducted in various modes such as ATMs, SMS, bank account, MMID codes, etc. Customers can choose the best payment mode they feel is convenient and accordingly choose to process them.
  • The facility of such transfer is available the whole year 24/7, including on the public holidays and weekends.
  • IMPS payments are fast and instant, which allows customers to save a lot of time.
  • IMPS payments are 100% safe and secure, which means customers will not have to worry about their funds getting stolen in the process.
Full Form of IMPS

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How Does IMPS Work?

The customers can use different channels for IMPS transactions that include a mobile application, internet banking, and ATM. For getting the transaction done through mobile banking, the mobile number and MMID of the beneficiary are required, and the transaction can be verified using the mobile number and MPIN of the transferor.

For getting the transaction done through the internet banking, the account number and IFSC of the beneficiary are required, and the transaction can be verified using the internet banking password or transaction password and OTP of the transferor and forgetting the transaction done through the ATM, a person only needs valid ATM card, and the transaction can be verified using the ATM Pin.

What is the Procedure of IMPS?

The procedure of the IMPS is as follows:

In order to transfer the electronically through IMPS mode using internet banking:

Procedure of the IMPS

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  • A person has to visit the site of the bank and log in to the bank account using internet banking.
  • Add the beneficiary by entering the details of the beneficiary to whom the funds have to be transferred. The detail required for adding the beneficiary includes IFSC, Account number, and name of the beneficiary in case of the person to account transfer.
  • After adding the beneficiary, it has to be approved using the OTP.
  • After that bank provides the confirmation of added beneficiary, and after few hours as defined by the bank, the beneficiary will be added.
  • Then, the beneficiary will be selected, and the details such as amount, remarks, etc. will be entered for further processing of the transaction.
  • Lastly, acknowledging receipt of the transferred funds will be received from the bank.

In order to transfer the electronically through IMPS mode using mobile banking:

steps of imps

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  • A person has to log into the bank mobile application and then visit the Fund transfer or Send Money tab.
  • Proceed further by entering the details of the beneficiary to whom the funds have to be transferred. The details include Mobile Money Identification Number (MMID), mobile number, and name of the beneficiary in case of the person to person transfer.
  • After adding the details, it has to be approved using the Mobile PIN (MPIN), and funds will be transferred once the bank verifies mobile PIN (MPIN).
  • Lastly, acknowledging receipt of the transferred funds will be received from the bank.

What are the Charges for IMPS?

The charges levied by the banks for carrying out the transaction using the IMPS mode are different for each of the participating banks for their customers, and the same is decided by the banks only.  Like in the case of the State Bank of India (SBI), no charges are levied for transferring the money using IMPS with effect from August 1, 2019, whereas in the case of the Industrial Credit and Investment Corporation of India (ICICI) Bank INR 5 is levied for transactions up-to INR 1 lakh and INR 15 for transactions between INR 1 lakh and INR 2 lakh. So, forgetting the details of the charges levied for IMPS transactions, the bank’s website should be referred.

What are the IMPS Timings?

In case the IMPS funds can be transferred at any time, i.e., whole year 24/7, including on the public holidays and weekends, if all the details required for such transactions are available with the transferor irrespective of his present location.

What is the Limit of IMPS?

Limits of IMPS

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The transaction limit for carrying out the transaction using the IMPS mode is set and mentioned by each of the participating banks for their customers, but in the case of most of the banks, INR 200,000 is the upper limit per transaction, and the transactions beyond this cannot be done using the IMPS facility. So, to get the details of the limit of IMPS, the bank’s website should be referred to.

Things to Remember

The IMPS facility enables instant funds transfer electronically using different channels such as mobile applications, internet banking, and ATM. The limit and the charges for the IMPS transactions vary from bank to bank, and in order to get the exact details website of the bank should be referred to. IMPS payments are fast and safe and enable anytime transfer as it is available 24 * 7 to the users.

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This has been a guide to the Full Form of IMPS (Immediate Payment Service) and its definition. Here we discuss how to do IMPS works, the procedure of IMPS along with its features, charges, timings, and limits. You may refer to the following articles to learn more about finance –

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