What is IMPS ?

An In-Depth Look at IMPS (Immediate Payment Service)

Introduction to IMPS

IMPS (Immediate Payment Service) is an instant interbank electronic fund transfer service in India. It enables customers to transfer money instantly between two bank accounts on a mobile phone, 24×7. The service is available through mobile banking, internet banking or ATM. IMPS uses a Mobile Personal Identification Number (MPIN) to authenticate transactions, making it secure and convenient. It was launched in November 2010 by the National Payments Corporation of India (NPCI) and has since become a popular mode of real-time fund transfer in India. IMPS supports both individual-to-individual and individual-to-merchant transactions. With IMPS, customers can transfer funds anytime, anywhere and the transaction is processed almost instantly.

How does IMPS work

IMPS (Immediate Payment Service) works as follows:

Registration: The customer needs to register for the IMPS service through their bank’s mobile or internet banking platform.
Mobile Number and Bank Account Linking: The customer’s mobile number needs to be linked to their bank account in order to use the IMPS service.
Mobile Personal Identification Number (MPIN): The customer is required to set up an MPIN, which will be used to authenticate all IMPS transactions.
Transferring Funds: To transfer funds, the customer needs to log into their mobile or internet banking account and select the “IMPS” option. They then need to enter the recipient’s account number, bank and mobile number, and the amount to be transferred.
Confirmation: The customer will receive an SMS with a confirmation of the transaction, including a transaction reference number.
Processing of the Transaction: The transaction is processed instantly, and the recipient will receive an SMS notification of the transaction.
Security: IMPS transactions are secure, as they require the customer to enter their MPIN for authentication. The customer can also receive an SMS alert for every transaction they make, making it easier to track their IMPS activity.

Advantages of using IMPS

The advantages of using IMPS (Immediate Payment Service) include:

1. Instant Transfer: IMPS enables instant transfer of funds between two bank accounts 24×7.
2. Convenience: IMPS can be accessed through mobile or internet banking, making it convenient for customers to transfer funds anytime, anywhere.
3. Wide Availability: IMPS is available across all banks in India, making it easy for customers to transfer funds to any bank account.
4. Security: IMPS uses a Mobile Personal Identification Number (MPIN) for authentication, making it a secure mode of fund transfer.
5. Real-time Monitoring: Customers receive SMS notifications for every IMPS transaction, enabling real-time monitoring of their IMPS activity.
6. Cost-effective: IMPS is a cost-effective mode of fund transfer as it does not charge any transaction fees for transferring funds.
7. Accessibility: IMPS can be accessed through a mobile phone, making it accessible to customers who do not have internet access.

These are some of the key advantages of using IMPS, making it a popular and convenient mode of real-time fund transfer in India

Security measures in IMPS

IMPS (Immediate Payment Service) is a real-time interbank electronic fund transfer service in India. The following are some of the security measures in place to ensure the safety and security of IMPS transactions:

Mobile Personal Identification Number (MPIN): A unique MPIN is required to initiate an IMPS transaction, providing an added layer of security to the transaction.
End-to-End Encryption: IMPS uses end-to-end encryption to ensure the confidentiality of sensitive information, such as account numbers, during the transaction.
Two-Factor Authentication: IMPS requires users to authenticate themselves using both their mobile device and MPIN, providing an added level of security.
SMS and Transaction Alerts: Users receive SMS and transaction alerts for all IMPS transactions, allowing them to promptly detect any unauthorized transactions.
Limited Transaction Amount: The maximum transaction limit for IMPS is set by the bank, helping to reduce the risk of fraud.
Time-based One-Time Password (T-OTP): T-OTP is an additional security feature that generates a one-time password valid for a short period of time, further adding to the security of the transaction.
Suspicious Transaction Monitoring: IMPS transactions are monitored for suspicious activity, and if any such activity is detected, it is promptly reported to the concerned authorities.
These security measures ensure that IMPS transactions are secure, fast, and reliable, and help to prevent unauthorized access to sensitive financial information and reduce the risk of fraud.

How to use IMPS ?

IMPS (Immediate Payment Service) is a real-time interbank electronic fund transfer service in India. Here are the steps to use IMPS:

1. Register for IMPS: To use IMPS, you need to register for the service through your bank’s mobile banking application or internet banking portal.
2. Link Your Bank Account: You need to link your bank account to your mobile number in order to use IMPS. This can be done through the mobile banking application or internet banking portal.
3. Create Mobile Personal Identification Number (MPIN): After linking your bank account, you will be required to create a unique MPIN, which will be used for authentication purposes when making transactions.
4. Initiate a Transaction: To initiate an IMPS transaction, you need to log in to your mobile banking application or internet banking portal and select the IMPS option. Then, you need to enter the recipient’s bank account number, mobile number, and the amount you wish to transfer.
5. Confirm the Transaction: After entering the transaction details, you will receive a confirmation message, which you need to approve using your MPIN.
6. Receive Confirmation: After your transaction has been confirmed, you will receive a confirmation message indicating that the transaction has been successful.

These are the basic steps to use IMPS. It is important to keep your MPIN confidential and to use it only for IMPS transactions, to ensure the security of your financial information.

IMPS transaction limits

IMPS (Immediate Payment Service) is a real-time interbank electronic fund transfer service in India. The transaction limits for IMPS are set by individual banks, and may vary from bank to bank. However, the Reserve Bank of India (RBI) has set a maximum transaction limit of INR 2 Lakhs per transaction for IMPS.

It’s important to note that the actual transaction limit for IMPS may be lower than the maximum limit set by the RBI, depending on the bank. Some banks may also have different transaction limits for different types of IMPS transactions, such as mobile-to-mobile transactions and mobile-to-account transactions.

It’s recommended to check with your bank for the specific transaction limits applicable to your IMPS transactions. It’s also important to regularly monitor your IMPS transactions and to immediately report any suspicious activity to your bank.

Comparison with other money transfer services:

IMPS is one of the several instant money transfer services available in India. Other popular services include UPI, NEFT, RTGS, and mobile wallets. IMPS is different from these services in terms of its real-time transfer capability, small transaction limit, and availability through mobile devices or internet banking.

Conclusion:

IMPS is a convenient and secure way to transfer funds in India. Its instant transfer capability and availability through mobile devices or internet banking make it an attractive option for those looking to transfer money quickly. However, its transaction limit and availability through only certain banks should also be taken into consideration before using IMPS for fund transfers.