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What is IMPS

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.

Background of IMPS

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.

Major Characteristics of IMPS

  • IMPS is available 24 hours a day, 365 days a year, allowing users to transfer funds at any time and from any location. Making payments to your clients or transferring monies does not require you to go to the bank and go through a lengthy process. Even on public holidays and bank holidays, the service runs smoothly throughout the year.
  • As soon as the funds are transmitted, both the sender and the receiver receive instant credit and debit notices. This means you won't have to worry about whether or not the cash is moved. The service takes excellent care of its processes.
  • As the IMPS full name implies, IMPS allows for quick and easy fund transfers. The service allows users to access bank accounts via their mobile phones and make secure inter-bank fund transfers.
  • The fundamental aspect of IMPS is its versatility, as it may be utilized in a variety of modes. Users can use IMPS to send money from one person to another using their mobile number or their bank account information. P2M (Person to Merchant) payments can also be made with IMPS.
  • IMPS isn't just for money transfers. It could also be used for a variety of other things. The service can be used to pay for insurance premiums, internet shopping, over-the-counter purchases, utility bill payments, transport and ticketing, and school, college, and university fees.
  • IMPS is quite easy to use in comparison to other electronic fund transfer methods. This feature is indicated in the IMPS complete form. This is because you would always have your phone with you, allowing you to utilize the service wherever and whenever you want. This is useful in a variety of scenarios, such as a family emergency or an acute need for finances, where you can ask your family and friends for help.
  • For such quick and simple transactions, IMPS practically necessitates mobile banking. To utilize these services, you must have a mobile facility in your associated bank account, as they work through the bank's mobile application. However, IMPS can also be done over the internet or by SMS, but both methods need too many steps and complicate the process.
  • Since IMPS operates through a bank's mobile app, you'll need some familiarity with the internet and other components of mobile banking. If you don't, you can mistakenly regard even the most basic user interface as sophisticated, resulting in a poor user experience.

What is IMPS - FAQs

Is it possible for a consumer to link multiple bank accounts to IMPS?

Yes, IMPS can be utilized for several bank accounts using particular bank mobile applications or through a single mobile application.

How long will it take for my IMPS deposit to be transferred?

The IMPS transfers will take place instantly without having to wait.

What is the full form of IMPS?

Immediate Payment Service is the full form of IMPS.

Is it necessary for the consumer to have a bank account to use IMPS?

No, IMPS does not require the customer to have a bank account. PPI (Prepaid Payments Instrument) issuers can provide IMPS to unbanked consumers.

What services are provided with IMPS?

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.

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