Transferring money during an emergency is an essential banking service. Instant money transmission technology has permeated our lives with the surge in digital transactions. Indian fintech advancements support the entire setup. Although there are some minimal IMPS charges, the service has grown and continues to do so at a tremendous pace. It has gone up to the point that when there is even a tiny delay, or if the payment system is down, it tends to halt our lives, and we start seeking alternatives to transfer money.
The Reserve Bank of India (RBI)
The head of the country’s banking system and the National Payments Corporation of India (NPCI) developed the electronic money transfer technology much before the relevancy of the payment applications. This effort bore fruit in 2010 in the form of the Immediate Payment Service. It is a very simple money transfer method. This article will walk you through the various aspects like IMPS charges, procedures, and significance.
IMPS transfer- What is it?
IMPS is a real-time electronic fund transfer to beneficiary/payee accounts. The managing body for IMPS is NPCI and the nation’s central bank, RBI, governs it. The biggest advantage of transfers is that they are available daily and around the clock, even on Sundays and public holidays. Moreover, they are available to the Government and Private Banks of India.
Apart from IMPS, there are other ways to transfer money, such as RTGS and NEFT; however, these can only be utilised during working hours and are unavailable on holidays. Here, the key benefit of employing the method is its accessibility, allowing consumers to use this service whenever it is most convenient.
Initiated in 2010 as a pilot initiative involving four banks, IMPS has already expanded to more than 150 institutions across the nation. A user can start an interbank money transfer using this payment method using a variety of platforms, including SMS, Netbanking, ATMs and mobile banking coinjoin alternatives. Before sending money via IMPS to a beneficiary, a sender or user must register that recipient. You need to have the recipient’s bank account number, Bank branch, bank name, and IFSC code to initiate the process.
Features of IMPS
Our country’s users now get payment settlements more quickly thanks to the IMPS capability. Here are a few of its main characteristics:
- It facilitates secure interbank money transactions.
- IMPS transfers are compatible with both mobile and online banking systems.
- You can use a beneficiary’s Mobile Money Identifier (MMID) to send money to them over the IMPS platform. The platform also facilitates money transfers through mobile numbers.
- IMPS platform doesn’t always require the beneficiary’s bank account information, like in the case of transfers through a mobile number.
- After successfully completing the money transfer, the platform notifies the payer and the payee.
- It also acts as the foundation of the Unified Payment Interface (UPI) technology.
Procedure for the IMPS Transfer
Since it is such groundbreaking technology, you should know the correct procedure to use it. As mentioned above, it is available with the government as well as the private banks of India, and it is also available on mobile and online platforms. So the correct procedure to initiate an IMPS transfer via both methods is given below.
- How to complete an IMPS transfer using online banking?
- Access the online banking website of your bank.
- Add a recipient by providing their bank account number, name (as in account), IFSC code, account type, and contact information.
- Choose the beneficiary you wish to send money to via the fund transfer option.
- Check the amount and verify it. The beneficiary’s account will receive the money right away.
- IMPS transfer procedures for mobile banking
- Open the mobile app for your bank.
- If not done earlier, add a beneficiary.
- Enter the beneficiary’s cellphone number after selecting the money transfer or send money option.
- Enter the beneficiary’s MMID and the desired transfer amount.
- The money will flow immediately if you use your mobile PIN to verify the transfer.
IMPS is an excellent initiative which has pushed Indian fintech advancements into a new era. The entire IMPS process is easy to learn and operate. It is fast, flexible and constantly accessible. In addition, the IMPS charges are minimal compared to its benefits.