What is the Full Form of IMPS?
IMPS Full Form: Immediate Payment Service
IMPS stands for Immediate Payment Service. It is an instant real-time interbank electronic funds transfer system in India that allows customers to transfer funds between two bank accounts on a 24×7 basis. IMPS offers an interoperable and accessible platform for all banks in India, intending to enhance customer convenience and banking experience. The service is available through multiple channels such as mobile phones, Internet banking, ATMs, etc.
IMPS provides an instant, 24×7 interbank electronic fund transfer service through mobile phones and other digital channels. This facility can be used by account holders of participating banks to send and receive money securely and conveniently. The sender needs to have the beneficiary’s account number.
How does it work?
To use mobile banking, customers first register their mobile number with their bank. Once registered, they will be given a Unique Mobile Money Identifier (MMID) and MPIN. The MMID is a 7-digit number that serves as the customer’s identifier for mobile banking transactions. The MPIN is a 4-digit number that is used to confirm transactions. The customer needs to enter their MMID and MPIN into their mobile banking app to make a transaction.
The Benefits of IMPS
The IMPS system is a quick and convenient way to send money in real-time. The funds will be credited to the beneficiary’s account within seconds, making it an ideal emergency solution. Additionally, IMPS is available 24/7, so you can send money at any time of the day or night. Finally, there are no transaction fees associated with IMPS transfers, making it an affordable option for sending money.
Drawbacks of IMPS
One of the main drawbacks of IMPS is that it is not available 24/7. The service is only available during banking hours, which can be restrictive for people who need to make urgent payments outside of regular banking hours. Additionally, there have been reports of issues with the service, such as costs not going through or being delayed. This can be frustrating for customers trying to use IMPS to make essential payments. Another downside of IMPS is that it is not widely available. Not all banks offer the service, which is not available in all countries. This means that people who want to use IMPS may have to open a new bank account with a bank that offers the service.
What is the difference between IMPS and NEFT?
Though IMPS and NEFT are both digital modes of transferring funds, there are some critical differences. IMPS can be used for transfers 24/7, while NEFT can only be used during specific time windows. Additionally, IMPS transfers are typically processed much faster than NEFT transfers. Finally, while NEFT transfers have a maximum limit of 2 lakhs, there is no such limit for IMPS transfers. Consequently, IMPS would be the better option if you need to make a significant or urgent transfer.
Is there any charge for IMPS?
Yes, there is a small charge for IMPS transactions. The amount charged depends on the amount being transferred but ranges from a minimum of Rs.2.50 to a maximum of Rs.25. This makes IMPS an affordable and convenient way to send money instantly, even if you’re not in the same city or state as the recipient.
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