With the evolution of digital banking, newer modes of fund transfers have arisen. Using cheques for payments has almost become obsolete with the introduction of several different digital banking techniques. NEFT and RTGS are two common modes of transfer of funds from a bank account. However, NEFT and RTGS are handicapped by the fact that these transfers happen during banking hours and on days that banks are in operation. For 24x7 transfers, a newer way is to use IMPS.
IMPS or Immediate Payment Service (IMPS) is an instant payment method where funds are transferred between two bank accounts immediately. This service is available 24x7. But the best advantage of IMPS is that it is primarily available on mobile phones. This has made it very simple to transfer funds using mobile phones. IMPS can be used to transfer funds from person to person or from person to a bank account directly.
Procedure for using IMPS:
1. The first step is to register for Mobile Banking of the respective bank. This will help with IMPS transfer. The registration is done using the customer’s mobile number and MMID (Mobile Money Identification Number). The MMID is a 7 digit number that identifies the bank that is offering the IMPS transfer and the customer.
2. To make an IMPS transfer, you need to add an IMPS beneficiary. This can be added via NetBanking or Mobile Banking through the bank’s mobile banking application. The details required are:
• Bank account number
• IFSC code of the bank
• MMID of the beneficiary
• Mobile number of the recipient
3. The bank may send a One Time Password (OTP) to authenticate the addition of the beneficiary. The beneficiary usually gets added in 30 minutes to a couple of hours.
4. Each bank has their limits on transfers to the beneficiary after addition. Some banks have limits only for the first 24 hours, while others have limits for the first few days. Post that, third party transfer limits applicable to NEFT will apply to IMPS transfer.
IMPS is an affordable means of fund transfer. Different banks set their charges for IMPS, and in most cases, the IMPS charges depend on the value of the transaction. Before making an IMPS transfer, check the costs on the bank's website. Most banks display the charges on their IMPS web pages.
One of the best advantages of IMPS is that the funds get credited to the beneficiary immediately, regardless of it being a holiday for banks. However, for an IMPS transfer to go through, the person must have an adequate bank balance.
IMPS or Immediate Payment Service (IMPS) is an instant payment method where funds are transferred between two bank accounts immediately. This service is available 24x7. But the best advantage of IMPS is that it is primarily available on mobile phones. This has made it very simple to transfer funds using mobile phones. IMPS can be used to transfer funds from person to person or from person to a bank account directly.
Procedure for using IMPS:
1. The first step is to register for Mobile Banking of the respective bank. This will help with IMPS transfer. The registration is done using the customer’s mobile number and MMID (Mobile Money Identification Number). The MMID is a 7 digit number that identifies the bank that is offering the IMPS transfer and the customer.
2. To make an IMPS transfer, you need to add an IMPS beneficiary. This can be added via NetBanking or Mobile Banking through the bank’s mobile banking application. The details required are:
• Bank account number
• IFSC code of the bank
• MMID of the beneficiary
• Mobile number of the recipient
3. The bank may send a One Time Password (OTP) to authenticate the addition of the beneficiary. The beneficiary usually gets added in 30 minutes to a couple of hours.
4. Each bank has their limits on transfers to the beneficiary after addition. Some banks have limits only for the first 24 hours, while others have limits for the first few days. Post that, third party transfer limits applicable to NEFT will apply to IMPS transfer.
IMPS is an affordable means of fund transfer. Different banks set their charges for IMPS, and in most cases, the IMPS charges depend on the value of the transaction. Before making an IMPS transfer, check the costs on the bank's website. Most banks display the charges on their IMPS web pages.
One of the best advantages of IMPS is that the funds get credited to the beneficiary immediately, regardless of it being a holiday for banks. However, for an IMPS transfer to go through, the person must have an adequate bank balance.
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