Banking is continuously evolving with the advancement of electronic media. With the emergence of smartphones and tablets, the banking process has also become simpler. Mobile banking and internet banking have become popular as well. A new mode of money transfer known as Immediate Payment Service or IMPS was also introduced. However, many people in India are still not aware of IMPS and what it stands for.
What is Immediate Payment Service and what are its advantages?
It is a form of digitized banking, which is available 24x7. Funds can be transferred even after the banks close for the day and even on bank holidays. It involves mobile banking. This means that the funds can be transferred securely from your mobile to the other person’s mobile. From the phone, the money is then deposited into the receiver’s account.
IMPS was accepted by the National Payments Corporation of India or NPCI in 2010. There is essentially no minimum limit of funds one can transfer using IMPS. However, to facilitate the transfer, you will need three important information about the receiver. Firstly, you will need to know the full name of the beneficiary. Next, you will need the account number of the receiver. Finally, you will also need to know the IFS code of the beneficiary.
Two other things are required to complete IMPS transaction. Upon registration to IMPS, the bank will generate a 7-digit MMID number. The MMID number of the beneficiary is required to complete the transaction. Lastly, the ten-digit mobile number of the receiver is also needed to complete the same.
This form of payment ensures instant money transfer in a safe and secure manner. Unlike National Electronic Fund Transfer and Real Time Gross Settlement, IMPS can be facilitated even when the banks are closed.
Disadvantages of IMPS
Even though IMPS has made life easy for everyone, there are still some limits to this mode of transaction. Firstly, the banks apply certain IMPS charges on every transaction. This charge varies from bank to bank and is also dependant on the amount being transferred. Higher the transfer amount, greater is the IMPS charge levied on the same.
Secondly, there is a limit to how much one can transfer through a single IMPS transaction. This upper limit varies from bank to bank. However, if you are looking to transfer a substantial amount of money using this method, it may not be a viable option.
What is Immediate Payment Service and what are its advantages?
It is a form of digitized banking, which is available 24x7. Funds can be transferred even after the banks close for the day and even on bank holidays. It involves mobile banking. This means that the funds can be transferred securely from your mobile to the other person’s mobile. From the phone, the money is then deposited into the receiver’s account.
IMPS was accepted by the National Payments Corporation of India or NPCI in 2010. There is essentially no minimum limit of funds one can transfer using IMPS. However, to facilitate the transfer, you will need three important information about the receiver. Firstly, you will need to know the full name of the beneficiary. Next, you will need the account number of the receiver. Finally, you will also need to know the IFS code of the beneficiary.
Two other things are required to complete IMPS transaction. Upon registration to IMPS, the bank will generate a 7-digit MMID number. The MMID number of the beneficiary is required to complete the transaction. Lastly, the ten-digit mobile number of the receiver is also needed to complete the same.
This form of payment ensures instant money transfer in a safe and secure manner. Unlike National Electronic Fund Transfer and Real Time Gross Settlement, IMPS can be facilitated even when the banks are closed.
Disadvantages of IMPS
Even though IMPS has made life easy for everyone, there are still some limits to this mode of transaction. Firstly, the banks apply certain IMPS charges on every transaction. This charge varies from bank to bank and is also dependant on the amount being transferred. Higher the transfer amount, greater is the IMPS charge levied on the same.
Secondly, there is a limit to how much one can transfer through a single IMPS transaction. This upper limit varies from bank to bank. However, if you are looking to transfer a substantial amount of money using this method, it may not be a viable option.
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