Immediate Payment System, as the name suggests is a platform facilitating an instant transfer of money. It is an inter-bank money transfer system that works using mobile phones. This is an alternative to NEFT and RTGS, which are not available during bank holidays. IMPS works on a 24*7 basis, that means immediate transfer of money, anytime, anywhere, throughout the year. Bank holidays, should not slow down the Indian economy, and hence making the transfer of money possible around the clock IMPS has come as an aid.
NPCI, National Payments Corporation of India regulates this system which connects over 53 commercial banks, 101 Rural/District/Urban and cooperative banks, and 24 PPIi (prepaid payment instruments in India). IMPS is an electronic fund transfer mechanism designed to instantaneously transfer money from one bank to another. With online and mobile banking platforms being successful, this is a new initiative aimed at real-time transaction.
IMPS can be carried out using Internet services on your phone or laptop.
How to transfer money through IMPS
|Log in to the application.||Log in to the website.|
|In the Send Money/Fund Transfer tab, go to the IMPS option||Add an IMPS beneficiary. For this, you will need – beneficiary’s name and account no., account type, Indian Financial System Code (IFSC) Code, and branch name and address of the Bank.|
|Enter Beneficiary mobile no., Amount and the beneficiary’s Mobile Money Identifier (MMID)||Go to Fund Transfer once the beneficiary is added. Then you can select the beneficiary and add the amount and remarks.
|Authenticate the transfer using your Mobile PIN (MPIN)||Confirm the transfer and keep the reference number generated safe for future reference.|
Once you make the payment, the beneficiary’s bank has about half an hours time to credit the money to suggested bank account.
Charges of IMPS
Transaction Fee – INR 5 to 15 per transaction
Transaction Limit – INR 2 lac per day