Complete Notes on Immediate Payment Service
Immediate Payment Service (IMPS) is a tool through which one can transfer money instantly within banks (inter bank) across India through mobile, internet and ATMs which is not only safe but also economical both in financial and non-financial perspectives. The IMPS facility is provided by National Payments Corporation of India (NPCI). Unlike the transaction by either National Electronic Funds Transfer or Real Time Gross Settlement, which can be done only in the working hours, the IMPS service is available 24*7*365 throughout the year including bank holidays. IMPS is a Inter-Bank electronic fund transfer system.
Also Read : Bharat Bill Payment System
Why Immediate Payment Service was started?
Before IMPS system, the transactions could be done either by NEFT or by RTGS. And this can also happen in NEFT and RTGS working hours. So NPCI with some other banks like SBI, BOI, UBI and ICICI in 2010 conducted a pilot study to create a system that works 24*7. As a result, IMP public launch happened on 22nd November 2010 by smt. Shyamala Gopinath, DG RBI at Mumbai and this service is now available to the Indian Public.
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The participants for IMPS are :
- Beneficiary (Receiver)
- Remitter (Sender)
- National Financial Switch by NPCI
Objectives of Immediate Payment Service :
- To be customer friendly so that customers do not have to wait for tomorrow to make remittances.
- To make the payment simpler just with the use of mobile number only.
- To achieve digitization in doing retail payments.
- To build the foundation for a full range of mobile based Banking services.
- To make the mobile payment system safe and secure.
Some important facts :
- The bank should have an approval from RBI for Mobile Banking Service to be eligible to participate in IMPS.
- Customer should do Mobile Banking Registration if he wants to transact through mobile.
- The customer gets a unique Mobile Money Identifier (MMID) which is one of the inputs to start the transaction. It is a 7 digit number issued by banks.
- Every mobile phone either basic phone or smartphone is eligible for IMPS.
- There is no need of bank account to avail Immediate Payment Service.
- The recipient is not required to register for Immediate Payment Service.
- More than one account can be linked to single mobile number.
- Individual banks can charge money for IMPS as per bank policy.
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