Role of Immediate Payment Services in Banking


Immediate Payment Service (IMPS) is an immediate real-time inter-bank electronic funds transfer system in India. IMPS offer an interbank electronic fund transfer service through smartphones. Unlike NEFT and RTGS, the facility is available 24/7 throughout the year including bank holidays. This service is not only safe but also cost-effective both in financial & non-financial outlooks. The IMP service is provided by National Payments Corporation of India (NPCI).


Before, IMPS system, the transactions could be done either by NEFT or by RTGS. But, this NEFT & RTGS works during banking hours only. So, a pilot survey was conducted by NPCI along with SBI, BOI, UBI & ICICI in 2010 to create a system that works 24/7. As an outcome, IMPS public launch happened 0n 22-Nov-2010 by Smt. Shyamala Gopinath, Deputy Governor, RBI at Mumbai.


  • Remitter (Sender) 
  • Beneficiary (Receiver) 
  • National Financial Switch by NPCI 
  • Banks 


  • To be client friendly, so customers don’t need to expect tomorrow to create remittances. 
  • To create the payment less complicated with the use of the mobile number. 
  • To attain digitisation in doing retail payments. 
  • Building the foundation for mobile based Banking services. 


  • To participate in IMPS, banks should be having approval from RBI for Mobile Banking Service. 
  • To transact through mobile, customers should get registered first for Mobile Banking. 
  • The banks will issue a 7 digit unique Mobile Money Identifier (MMID) number to start the transaction. 
  • Every cell phone be it a basic set or smartphone is eligible for IMPS. 
  • For a single mobile number, more than one account can be linked. 
  • As per the individual bank policy, the transaction fee is applicable for IMPS.

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