Role of Immediate Payment Services in Banking

INTRODUCTION:

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).

NEED FOR IMPS:

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.

IMPS CONTRIBUTORS:

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

OBJECTIVES: 

  • 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. 

IMPORTANT POINTS:

  • 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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