What is the full form of IMPS?

Introduction to IMPS

IMPS stands for immediate fund transfer service that facilitates quick and easy fund transfer with no hassles. Usually, people don't understand the IMPS full form or its options and sometimes confuse it with alternative modes of funds transfer like NEFT and RTGS. However, it's utterly totally different from the opposite. The IMPS full form stands for cash Service. This can be an interbank electronic fund transfer system that uses mobile phones as a platform for the transfer method. IMPS is completely different from NEFT and RTGS because it is obtainable 24/7 and 1 year despite bank holidays.

IMPS history

  • IMPS is designed on the present NFS (National Financial Switch) and is managed by NPCI (National Payments Corporation of India). IMPS started in 2012 with a pilot from NPCI for mobile payment systems with four banks, viz. State bank of India, Bank of India, Union Bank of India, and ICICI Bank. NPCI then enlarged IMPS and enclosed  HDFC Bank, and Axis Bank later that year.
  • On 22nd November, IMPS was launched in public and currently includes fifty-three industrial banks, 101 districts / rural/urban, and cooperative banks.
  • Easily Accessible: in contrast to alternative electronic fund transfer mediums, IMPS is accessed easy
  • The IMPS full form could be a clear indication of this feature. This can be as a result of you'll continuously have your transportable with you which of them means you'll access the service anytime and anyplace you wish. This comes in handy in a type of thing like any family emergency or immediate would like of funds wherever you'll request the desired amount from your family and friends.

What is IMPS in banking?

  • IMPS full form is Cash Service. It's an Immediate electronic fund transfer service that enables inter and intra-bank transfers. In easy words, IMPS helps customers transfer cash instantly from one account to a different.
  • Using IMPS, you'll be able to send cash in time, and it'll be credited to the beneficiary’s account within seconds. whereas there's no minimum limit in transfer amount, the utmost amount you'll be able to transfer per day via the cash Service is government agency 200,000.
  • This fund transfer service is obtainable 24x7 throughout the year, as well as on Sundays, banks, and state or national holidays. Another vital advantage of IMPS is that individuals will access this facility through multiple channels, like mobile banking, SMS, internet banking, or maybe ATMs.
  • IMPS is a lot of widespread on mobile phones however it can even be used on desktops, laptops, and tablets. IMPS service is connected with VPA (Virtual Payment Address), i.e. a singular virtual payment address that transfers cash directly from your connected bank account.
  • On mobile phones, you simply got to generate a singular 7-digit MMID (Mobile Money Identifier). After that, you'll be able to avail of the service as per the mobile application of your bank.
  • The utmost transaction limit of IMPS for normal use goes from Rs. 10,000 to Rs. 5 lakh consistent with completely different banks. Additionally, there's no minimum limit for transactions in IMPS.
  • Users will favour transferring the funds by using the 10-digit mobile number of the receiver or bank details like account variety and IFSC Code. However, transferring cash through a mobile number is simpler because of the possibility of mistakes. This can result in getting into difficult bank details can result in mistakes. Employing a mobile number for transactions could be a higher plan as each party doesn't get to share their confidential bank details.
  • Sometimes users build mistakes in getting into their mobile number or bank details and in such conditions, things will become difficult. If the mobile variety or account number doesn't exist, either the funds wouldn't transfer, or just in case of a transfer, it'll be refunded mechanically.
  • However, if you've got entered the wrong however existing mobile variety or bank account number then the funds will solely be refunded by the beneficiary. this can be why it's invariably higher to double or triple-check the data.

IMPS features

The list of options/features of IMPS is given here.

Instant Fund Transfer:

  • As the IMPS full form suggests, fund transfer through IMPS is easy and instant. The service uses mobile phones as a channel for accessing bank accounts and performs inter-bank fund transfers in a secure approach.

Availability:

  • IMPS is obtainable 24/7 and for one year enabling users to transfer funds anytime and from any place. you are doing not got to head to the bank and follow an elaborate method for creating payments to your purchasers or transferring funds. The users can avail of IMPS services throughout the year irrespective of holidays,i.e 24x7.

Confirmations:

  • Each sender and receiver get instant credit and debit notifications before long because the funds are transferred. This implies that you just don't get to worry about whether or not the funds are transferred or not. The service takes care of its processes all right.

Versatility:

  • Versatility is the main feature of IMPS because it will be utilized in varied modes still. Users will use IMPS for P2P (person-to-person) funds transfers utilizing their mobile variety or by using their bank account details. IMPS will be used for P2M (Person to Merchant) payments still.

Usability:

  • IMPS isn't restricted to funds transfer solely. It will be used for varied alternative functions still. The service will be used for payment payments, online searching, unlisted payments, utility bill payments, travel and ticketing, and for paying fees to varsities, colleges, and universities.

Advantages of IMPS

  • The Indian industry has evolved over the years and quick electronic fund transfer systems like NEFT, RTGS, and IMPS are smart samples of modernization. Every one of those has its perks however IMPS will be simply planned because of the quickest mode of fund transfer. A number of the advantages of IMPS as a primary fund transfer medium are explained here.
  • Minimum Details Required: Fund Transfer through IMPS doesn't need any confidential details from each sender and therefore the receiver. The fundamental needs for causation cash through IMPS embody the name, mobile number, and MMID of the beneficiary. However, funds will be transferred through IMPS exploitation account numbers and IFSC Code still however such details are difficult and even a small mistake in getting into information will result in vital loss.
  • Inexpensive: IMPS is a cheap mode of fund transfer.
  • With such minimal charges, IMPS is known as the quickest and most cheap medium of fund transfer.

IMPS charges

The charges for IMPS are as follows:

  • Transfer amount Up to Rs. 10,000    
  • Charges  Rs. 2.50 + Applicable GST
  • (Subject to alter in step with Banks)
  • Transfer amount  From Rs. 10,000 to Rs. 1 lakh
  • Charges  Rs. five + Applicable GST
  • Transfer amount  From Rs. one lakh to Rs. 2 lakh
  • Charges Rs. fifteen + Applicable GST
  • Transfer amount Rs. 2 lakh and on top of
  • Charges Rs. twenty-five + Applicable GST or No Charge
  • Some banks don't levy any charges on transactions higher than Rs. 5 lakh through IMPS.

Important things to grasp concerning IMPS

  • Permit the IMPS facility of customers' bank account
  • To alter the IMPS facility on your account in a bank, you've got to register for mobile banking. For web, ATM, and bank branch channels, mobile registration isn't needed. You'll additionally receive cash exploitation IMPS, that you would like to urge your distinctive MMID from your bank and share with the sender. You'll as an alternative share your account range and IFSC code together with your sender.
  • You cannot settle for cash via IMPS by employing a mobile number that has not been registered together with your bank. you'll solely use the authorized or registered mobile range connected with your bank account.
  • Linking multiple accounts to your registered mobile number.
  • You are allowed to attach over one account to the same mobile number. Note, however, that every bank account number can have a unique MMID. If you change your mobile you modify it, you would like to update the bank about the new number and re-register for mobile banking.

Conclusion

Now that you simply grasp what's IMPS transfer and also the multiple ways in which to employ it, you'll access this facility anytime. The IMPS fund transfer facility is among the fastest and safest. it's additionally an extremely cost-efficient technique of transferring huge total cash in an exceedingly single transaction. The fact that IMPS can even be employed by people who don't have access to the internet makes it an excellent additional financially inclusive facility