In a decade, the banking sector of the country has been known to have evolved a lot. Today, customers can transfer funds in seconds, and their beneficiaries can also receive them instantaneously.
If a customer wants to send money instantly, they can use the IMPS (IMPS full form in banking - Immediate Fund Transfer Service) online method to transfer funds instantly, and that is discussed in this post.
Firstly, IMPS' full form is Immediate Fund Transfer Service, and it was built in the current National Financial Switch. This system is managed by the National Payment Corporation of India.
It began in 2012 with a pilot from NPCI for more phone payments with banks. NPCI had then expanded IMPS and included certain banks in it. This system of payment is known to be more famous on mobile phones, but it can also be used on laptops, tabs, desktops, and more.
This service works as a liaison with VPA that transfers money directly from the linked bank account. On the phone, you could only generate a 7-digit MMID. After that, you can get the service as per the application of the phone and the bank.
The highest transaction limit of IMPS for regular usage goes from an amount of Rs. 10,000 to Rs. 5 lakhs based on the different banks. Adding to that, there is no minimum limit for the transaction in this method of fund transfer.
The user can also choose to transfer the funds using the 10-digit phone number of the receiver or the bank details like the account number and the IFSC code. However, transferring the money through the phone number is more simple as the chances of mistakes are lower.
This is because - entering the complicated details of the bank could lead to some mistakes. Using the phone number for the transaction is a better choice as both parties don't have to share their confidential bank information.
Sometimes the user can make mistakes while entering the mobile number or the details of the bank in such conditions, and it could become tricky. If the phone number or the account number does not exist, either the funds would not transfer, or in the case of the transfer, it would be refunded automatically.
However - if you have entered a wrong but existing phone number or bank account number - the funds could only be refunded by the beneficiary. This is why it is better to double and triple-check the details provided.
Yes, IMPS can be utilized for several bank accounts using particular bank mobile applications or through a single mobile application.
The IMPS transfers will take place instantly without having to wait.
Immediate Payment Service is the full form of IMPS.
No, IMPS does not require the customer to have a bank account. PPI (Prepaid Payments Instrument) issuers can provide IMPS to unbanked consumers.
IMPS could be used for online merchant payments, supermarket bills, credit card bills, utility bills, school and college tuition, cell phone top-ups, and DTH recharge, in addition, to fund transfers and remittances. The National Unified USSD Platform is another unique payment feature of IMPS (NUUP). NUUP offers financial services to all consumers and is compatible with all GSM-enabled handsets.