The full form of IMPS in banking sector is IMMEDIATE PAYMENT SERVICE
What is IMPS?
Immediate Payment service is a domestic method of transferring money and is available all the time even during holidays.
IMPS is operable on mobile, internet and is also available in ATMs across all banks.
When and how IMPS was introduced to India?
IMPS was introduced to India in the November of 2010 by the Reserve Bank of India and the National Payments Corporation of India (NPCI), it was a pilot project with only four banks which has now grown to more than 150 banks of India.
What are the benefits of IMPS?
Transaction occurs instantly
Fast, safe and secure method to transfer funds
Bank account number not needed,
Mobile number and Mobile Money Identifier of the receiver is also enough to send the money
Works on both net-banking and mobile platforms
Available 24*7, 365 days a year
The minimum transaction amount is 1 Rupee
What are the features of IMPS?
- IMPS is one of the fastest and safest way to transfer or receive money and make inter-account payments.
- UPI or Unified Payment Interface is built on IMPS platform.
- IMPS can work through mobile app or any web devices, meaning customer can choose to send money from either their phone or PC as per their convenience.
- Most of the banks in India Are connected to IMPS services.
- Bank account numbers are not always necessary if the sender is transacting through mobile, it works if the user provides the receiver’s mobile number and Mobile Money Identifier (MMID).
- IMPS is available at all times, everyday of the week even during public, national and bank holidays.
- The minimum transaction on this platform is rupees 1 and the maximum value is rupees 2 lakh per day.
- On a successful payment both the sender and the receiver gets a notification from the bank and the app.
How can I transfer money to a person using IMPS?
There are three ways in which you can transfer money using IMPS provided both sender and receiver have a valid account in number:
Using the Aadhaar Number of the receiver
Using the Account Number and IFSC code of the receiver
Using the mobile number and Mobile Money Identifier
You can use mobile platforms, ATMs or internet banking to transfer money using IMPS.
Also Read: What is the full form of GST Tax in India?
What are the differences of IMPS and NEFT?
- Immediate Payment Service (IMPS) is managed by the NCPI while National Electronic Fund Transfer (NEFT) is managed by the Reserve Bank of India.
- IMPS was introduced in 2010 and NEFT was introduced in 2005.
- IMPS mechanism sends funds instantly but NEFT sends money in batches, meaning it sends money via electronic messages.
Is Internet Banking and IMPS the same?
Internet Banking is one of the ways used by IMPS to transfer money. You can use a mobile or desktop with an internet connection to transfer money using IMPS provided you have the required details of the receiver.
Which one is best to transfer money NEFT or IMPS?
IMPS allows instant transfer of fund and is available throughout the year any time of the day unlike NEFT, hence IMPS is better than NEFT.