IMPS is another real-time payment service, but it differs in that it is available 24⁄7 and even on bank holidays. You can instantly transfer comparatively smaller amounts, up to Rs. 2 lakhs, using IMPS.
As a result, consider IMPS to be the fund transfer mode that combines the best features of both RTGS and NEFT. You can transfer as little as you want, whenever you want, with instant results. Though most IMPS services are used online, a few banks also provide SMS services. Check with your bank to see if SMS IMPS transfers are supported.
The National Payments Corporation of India provides the IMPS service (NPCI). Customers can use their services to transfer funds between banks and Prepaid Payment Instrument (PPI) issuers. PPIs are instruments that allow you to use the value stored in the PPI to purchase goods and services or initiate fund transfers. Smart cards, magnetic stripe cards, digital wallets, and vouchers are examples of PPIs. Individuals without bank accounts can use PPI to transfer funds via IMPS.
IMPS transfer timings
An IMPS can be carried out 24*7 irrespective of the day of the week or time of the day. When you initiate an IMPS transfer, the money is immediately debited from your account and credited to the beneficiary.
IMPS transfer limits
IMPS service is used to transfer funds within INDIA with denominations of INR only. As per the NPCI circular, the maximum amount that can be transferred is Rs 2 Lakhs per transaction. Any transaction more than Rs 2 Lakhs will not get processed and will be credited back into your account.
How to do IMPS transfer
To transfer funds via IMPS, you must first register for the bank’s mobile banking service and obtain a Mobile Money Identifier (MMID) and MPIN from the bank. You must also ensure that your beneficiary or recipient has the MMID.
After you’ve registered, go to your net banking portal and choose IMPS as your preferred mode of transfer. Then enter information such as the recipient’s mobile number, MMID, amount to be transferred, and your MPIN. You will receive a confirmation message via SMS once this is completed.
Some of the benefits of this method
- Safe and secure
- Ease of transferring funds
- The fastest method of transferring funds
- The recipient gets the amount credited instantly without any delay.
- People do not need to share their bank details, especially, their account numbers for the transfer of funds in this platform. Money can be sent to anyone, simply with their cell phone number.
- The service is available throughout the year, 24×7.
Mobile Money Identifier (MMID)
Mobile Money Identifier, abbreviated as MMID, is a 7-digit unique number used for interbank transfers when using the MMID feature in mobile banking. Each account holder will be assigned an MMID, which will aid in the identification of a specific bank account. For all banking transactions, mainly fund transfers, this code can be linked to the mobile number.
In order for a fund transfer to be successful, both the sender (remitter) and the beneficiary/payee must have an MMID. The Immediate Payment System (IMPS) interface is used by this system. Money can be sent and received via SMS using a handset and the MMID facility.