What is IMPS - Full Form, Features, Limit, Charges, & Meaning
Launched in 2010, IMPS, Immediate Payment System was developed as yet another nuanced alternative to transfer funds interbank via payment gateways such as RTGS and NEFT, electronically, in real time, everytime and everywhere using multiple access channels such as mobile banking, netbanking, ATM, SMS and IVR. Backed by the NCPI ( National Payments Corporation of India, and under the overall purview of the RBI, IMPS payment gateway can be availed by those banks and PPIs (prepaid payment instrument issuers) which have a valid licence from the RBI. Currently 652 members live on the IMPS payment gateway which includes banks & PPIs. This channel is versatile, simple and quick as in addition to fund transfers, it can also be used to pay insurance premiums, utility bills, ticket charges, fees, online purchases etc.Hope by now, you have understood the basic concept. So basically, the core objectives of introducing an alternative payment gateway was to: Incentivise customers to use the [ mobile banking](https://upstox.com/banking/what-is-mobile-banking-in-india-meaning-features-login-and-registration/) channel to transmit funds. Infact, the mobile banking channel further democratised the pace of digital adoption of banking services due to wider reach of smartphones. sides, this payment gateway is relatively simpler, as you only require the mobile number of the beneficiary and the bank generates a unique 7 digit MMID code. Given the ease, speed, 247 availability, instant notification and safety of the transaction, it is no wonder that this channel has gained significant momentum especially over the last two years ( 2020-2022) with the number of monthly IMPS transactions rising from 248 million to 420 million.