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All You Need To Know About IMPS And How It Works
In the last decade, the banking sector in India has evolved by leaps and bounds. Gone are the days when sending and receiving money involved long, cumbersome processes, not to mention the long wait to receive credits. Today, you can transfer funds in seconds, and your beneficiaries can receive them instantly too. Thus, if you need to send money to your loved ones during emergencies or pay for your utilities, groceries, and more, you can simply initiate a quick online fund transfer. One such revolutionary mode of online payments is IMPS. Let us find out what is IMPS transfer and the many ways in which you can initiate it.
IMPS full form is Immediate Payment Service. It is an instant electronic fund transfer service that allows inter and intra-bank transfers. In simple word, IMPS helps customers transfer money instantly from one account to another.
Using IMPS, you can send money in real-time, and it will be credited to the beneficiary’s account within seconds. While there is no cap on the minimum transfer amount, the maximum amount you can transfer per day via the Immediate Payment Service is INR 200,000. This fund transfer service is available 24x7 throughout the year, including on Sundays, banks, and state or national holidays. Another significant advantage of IMPS is that people can access this facility through multiple channels, such as mobile banking, SMS, Net banking or even ATMs.
IMPS (Immediate Payment Service) make transferring money quick, safe, and convenient. It is one of the most preferred digital payment modes in India because of the following features and benefits:
If you are wondering how to use IMPS, the process is simple and user-friendly. IMPS allows you to send money instantly using mobile banking, internet banking, ATMs, or even SMS. All you need is the beneficiary’s account details or mobile number and MMID (Mobile Money Identifier). Once you enter the required details and confirm the transaction, the funds are transferred securely within seconds.
Having explained IMPS meaning, let us find out how to initiate a transaction using your mobile phone. If you want to use the IMPS facility to transfer funds to another bank account through the mobile banking route, you need two things:
MMID means Mobile Money Identifier. It is a 7-digit unique code issued to account holders by their banks to receive money using IMPS. If you have different bank accounts, you will have different MMIDs, even in the same bank. However, you can link them all to the same mobile number registered with your bank account.
Using MMIDs helps in keeping the account details private. Also, you do not need to remember account numbers and IFSC codes. Sending or receiving money is possible by just using registered mobile numbers and MMIDs.
Here is a stepwise guide on how to transfer money using IMPS via mobile banking:
Both you and your beneficiary will receive a notification upon successful completion of the fund transfer.
You can also access the Immediate Payment Service facility through net banking. In this case, you can transfer funds using the account number and IFSC code of the beneficiary. Let us check the process of using IMPS via internet banking:
You will receive a confirmation message for the fund transfer via both email and SMS
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The great thing about the Immediate Payment Service is that you can still initiate transfers without a net banking account or an internet-enabled smartphone. To make it more inclusive for everyone, banks enable IMPS transfers through SMS as well. So long as you have a mobile phone, you can IMPS facility via SMS as well.
However, to access this facility, you need to register for mobile banking and link your mobile number to your current or savings bank account. Once you have registered for the same, you can initiate a fund transfer through SMS. Here are the steps.
Once your mPIN is verified, you will receive an SMS confirming the fund transfer
Using IMPS at an ATM is a quick way to transfer funds without internet banking or mobile apps. Follow these steps:
The Immediate Payment Service for fund transfer is currently available between DBS Bank and almost all central banks India’s the public and private sector banks, including regional rural banks, small finance banks, and cooperative banks. To check the complete list, visit https://www.npci.org.in/what-we-do/imps/live-members
IMPS allows you to send money instantly, but there are certain limits set by banks and the National Payments Corporation of India (NPCI). The IMPS transaction limit can vary depending on your bank and mode of access.
These limits ensure secure and smooth fund transfers while giving you flexibility for both small and large payments.
Before you start using IMPS, it helps to know the cost involved. While the IMPS transfer meaning is simply sending money instantly between bank accounts, banks may apply small fees on such transactions.
Checking your bank’s specific IMPS charges ensures there are no surprises while making transfers.
Enabling IMPS is simple and usually requires activating mobile or internet banking with your bank. Once these services are set up, IMPS comes as a built-in feature. Typically, you need to:
This quick setup allows you to access IMPS 24x7 for instant fund transfers.
While IMPS offers speed and convenience, there are a few important points to keep in mind to ensure smooth transactions.
If your mobile number is not registered with your bank, you will not be able to receive money through IMPS using the mobile number and MMID method. In such cases, the sender must use your bank account number and IFSC code to complete the transfer.
It is possible to link more than one bank account to a single mobile number. However, you must generate a separate MMID for each account. Always provide the correct MMID to the sender to ensure that the funds are credited to the intended account.
In case an IMPS transfer fails due to technical reasons or incorrect details, the amount is usually reversed to the sender’s account within one working day. If the reversal does not happen automatically, you can raise a complaint with your bank, quoting the transaction reference number.
Opening a savings account online with DBS Bank is simple, fully digital, and requires no branch visits. You can get started within minutes by following these three quick steps:
Now that you know what is IMPS transfer and the multiple ways to utilise it, you can access this facility anytime. The IMPS funds transfer facility is among the quickest and safest. It is also a highly cost-effective method of sending a significant sum of money in a single transaction. The fact that IMPS can also be used by those who do not have access to the internet makes it an even more financially inclusive facility.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.
