April 26, 2023

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 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, 24*7 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.

Let us delve a bit deeper to understand the nuances of this payment gateway- the registration process, transaction fee, transaction timings, transaction amount limits etc.

Transaction fee

All such transactions are chargeable and the fee differs from bank to bank. Typically, it ranges from ₹2.5 to ₹25+GST.
On the other hand, payments via RTGS or NEFT attract a fee when initiated from a bank branch.

Registration process

  • To begin with the sender or remitter has to register his account for mobile banking services at his bank branch.
  • Consequently, the sender will receive a mobile money identifier (MMID) and MPIN from the bank which is a unique 7 digit code.
  • Now download the application software for mobile banking on your smartphone.
  • As nextstep steps, you need to register the beneficiary or the receiver.
  • Link your mobile digits to the account in the respective bank.
  • You will receive a mobile money identifier (MMID) from the bank.
  • Now to transfer funds to beneficiary's account:
  • Login to the mobile banking app and navigate to the menu ; else use the SMS facility, provided your bank provides the SMS services.
  • Now get beneficiary mobile digits and MMID- 7 digit unique code.
  • Key in beneficiary's mobile number, beneficiary MMID, amount and your MPIN and press ' send'
  • On successful completion, that is when the amount is debited from the sender's account and credited to the beneficiary's account, you will receive a confirmation SMS.
  • It is advisable to take note of the transaction reference code for any issues that may arise.
It is important to note that while earlier, both the remitter and the beneficiary were required to link their mobile numbers with their respective bank accounts and get MMID, in order to send or receive funds using IMPS, the platform was modified to include parameters such as account number and IFSC code or by using bank account linked Aadhaar, thereby further simplifying and democratising the payment channel.
It is also noteworthy, the credit risk related to insufficient fund balance is negated as such transactions are only fulfilled when the primary agency, NPCI routes the fund transfer to the beneficiary's account only after the remitting bank has debited the sender's customer account.

Transaction amount

All IMPS transactions have a maximum threshold limit capped at ₹5 lakhs per day.
However, there is no daily minimum transaction amount.

Transaction timings

All IMPS transactions are available 247365. When compared to other payment gateway such as NEFT ( which is also available 24*7), the transaction process is faster, on a real time basis ; while NEFT is subject to a lag of about 2 hours.

Frequently Asked Questions (FAQs):

Q. Who are the key participants for IMPS?

For fulfilling an IMPS based fund transfer, the following participants are involved:
  • Remitter (Sender)
  • Beneficiary (Receiver)
  • Banks
  • National Financial Switch - NPCI

Q. What details are required for IMPS fund transfer?

  • IMPS account digits and IFS Code or mobile number and MMID of both the sender and receiver.
    • In case of an ATM to channel, you need to validate through your ATM PIN.

Q. What are the key precautions to take as a customer to ensure safe and secured fund transfer through IMPS?

It is always good to follow these practices mentioned below to ensure safe fund transfers.
  • Never share your debit card details such as card number, expiry date & CVV with anyone.
  • Never share your one-time password ( OTP) with anyone.
  • Never forward SMS to unfamiliar digits.
  • Never share your net/mobile banking login password.

Q. Can IMPS service be availed offline?.

No, this service is only available online. However, other payment gateways such as NEFT or RTGS can be availed offline as well.

Q. What are the prerequisites for IMPS fund transfer?

You need to keep in mind the following while making use of this payment gateway.
  • For starters, you need to have a mobile banking account which then has to be linked to an app through your mobile phone.
  • Secondly, be extra cautious with regards to typing the beneficiary details such as the account number, amount etx. In case you make an error, the fund would be transferred to someone else's account . In such a case, you cannot retrieve or reverse the transaction until the beneficiary agrees to do so.
  • Thirdly, you must ensure steady and uninterrupted net connection so that any potential lags and probability of submitting fund transfer requests more than once is minimised.

Q. What is the IMPS reference number?

The reference code is a twelve digit number provided by the bank and displayed on your screen as soon as you authenticate the payment via this channel. This reference code can also be located in your bank account statement against the transaction ID.

Q. Which primary agency manages the IMPS payment gateway?

This type of fund transfer is routed through the National Payments Corporation of India (NPCI) whereas RTGS and NEFT are operated by the Reserve Bank of India.
It is important to note that all three fund transfer channels ( IMPS, RTGS, NEFT) are safe and secure and come under the purview of the Reserve Bank of India.

Never miss a trading opportunity with Margin Trading Facility

Enjoy 2X leverage on over 900+ stocks

Upstox Margin Trading Facility
Apple Logo
Downloadlogo
iOS App
Google Play Logo
Downloadlogo
Android App

RELATED ARTICLES

SBI Net Banking - Login, Registration, & Activation

Whether you are technology challenged like me or a savvy techie, you cannot ignore the rising pace of adoption of digital banking or net banking services especially during the Covid-19 phase. The sheer ease, speed and seamlessness of executing an online transaction to accessing information through superior technology enabled digital platforms with safe and secure gateways are driving customers to adopt netbanking facilities. Are you then curious! to open a netbanking account, say for example with SBI Bank. As a netbanking customer you can carry out fund transfers online to either your own account or third party account,IMPS fund transfer, make e- deposits such as e-recurring deposit, e-annuity deposit , e-TDR scheme to smart cards to utility bill payments to air, rail, bus and hotel bookings to online shopping to DEMAT and [IPO](https://upstox.com/ipo-initial-public-offering) services and much more. The net banking process is really simple. Let us assume you have an existing account with SBI wherein you rely on traditional banking transactions and now you wish to go the online way. All you need to do is to visit your SBI Bank branch and register for the Internet banking service. The branch will provide you a Pre Printed Kit (PPK) containing username and password for first login.

Reserve Bank of India - RBI Holidays -2022

Remember ! your good old school calendar in which our favourite page was the list of holidays chalked out at the beginning of each academic year. Just knowing this piece of information meant so much to us. Similarly, within the banking sector, the Reserve Bank of India ( RBI) is the apex body which publishes a detailed list of bank holidays, national and state-wise at the beginning of each calendar year. The RBI, India’s Central bank, also called as the banker’s bank key responsibility is to regulate and supervise the monetary and other banking policies of the financial sector which comprises financial institutions, commercial banks, non-banking financial companies. As an extension to its core responsibilities, the RBI publishes a list of holidays at the beginning of each calendar year. As per the holiday list, whether it is national specific or regional specific, banks would not be operational on those dates. Say for example: Republic Day, Independence Day, and Gandhi Jayanti are the only three National holidays; all other holidays are state-specific. For example: Banks remained closed on September 7-8, 2022 in Kerala for the Onam and Thiruvonam respectively. There will be a bank holiday on September 26, 2022 in Jaipur and Imphal for Navratri Sthapna. This comprehensive list of holidays is in addition to weekend Sunday holidays as well as alternate second and fourth Saturdays holidays during which all Banks across India remain closed. Consequently, the Banks across India would remain open on the 1st, 3rd and 5th Saturdays of every month (as per the notification of the RBI dated 28th August, 2015). The main purpose of declaring this comprehensive holiday list ( details given in Annexure) in advance at the beginning of each calendar year is to make you aware of the impending holidays so that you can plan your banking transactions accordingly with minimal stress. Consequently, it is mandatory for every bank across the Central / State Governments / Union Territories to follow the guidelines issued by RBI. Just to delve a bit deeper, this comprehensive list of holidays published by RBI is categorised as: - State-wise celebrations - Religious holiday - Festival celebrations and the basis of these holidays is governed by: - Holiday under Negotiable Instruments Act Real Time Gross Settlement Holiday - Banks’ Closing of Account The RBI holiday list is applicable to traditional banking transactions. As an netbanking and mobile banking customer, you can access your account 247365. You can also transact through NEFT payment service which is also available for 24×7365 (including bank holidays). However, in case of RTGS ( Real Time Gross Settlement) payment process, the 2nd and 4th Saturdays and all Sundays in a month are RTGS Holidays for every bank in India as per RBI guidelines. Besides, there is a list of additional RTGS holidays 20222 (apart from the already given holidays on 2nd & 4th Saturdays and every Sunday).

What is a Bank Account Number in India & How to Know It Online from Mobile Number

Bank Account is nothing but a financial account maintained by the bank or any other financial institution to assist the financial transactions made between the bank and the customer. It links the bank account holder to the bank so that all transactions can be recorded. There are different kinds of bank account offered by the bank that comes with different set of terms and conditions. Some common types of bank accounts are savings accounts, deposit accounts, current accounts, loan accounts and so on. Bank customers can open more than one account depending on their needs. Funds are deposited with the bank by the account holder under the bank account. These deposit funds are a liability for the bank but an asset of the depositor, which can be claimed anytime. In the case of Loan accounts, Bank lends some of its deposited money to its loan account holders or third party on interest. It is exactly the opposite of what deposit accounts do. A loan account serves as an asset for the bank but a liability for the depositor.

UCO Bank Net Banking & How to Activate Online: Login & Registration

UCO Bank Net Banking is an online banking service offered by UCO Bank to its customers. It is a convenient and secure way to access your bank account and manage your banking needs. With UCO Bank Net Banking, customers can check account balances, view account statements, transfer funds, and pay bills from their homes or office. It also offers features like bill payment, mobile banking, and shopping. UCO Bank Net Banking is a safe and secure way to manage your finances. It provides customers with great convenience, 24/7 access, and quick transaction processing.