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IMPS Full Form

IMPS is the fastest mode of funds transfer. You can transfer funds through a mobile platform only with the beneficiary's mobile number. The beneficiary doesn't need to disclose sensitive information like bank account details. Read further to know about IMPS Full Form, Mode of operation, and the payment system's advantages.

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What is the Full Form of IMPS?

The stress on digitisation led to new payment systems like IMPS, NEFT and RTGS. All these are online payment methods that mitigate the need of visiting the branch for any financial transactions. These online payment methods will limit the financial transitions in cash as well. Now let us learn about the IMPS Full Form, the way IMPS works, the benefits of IMPS etc. IMPS Full Form is an Immediate Payment Service. It is an electronic mode of funds transfer with a mobile as a platform for funds transfer. Funds can be transferred from one bank account to another bank account through mobile numbers or with the beneficiary's bank details.

Though mobile is a popular platform for IMPS, funds transfer can be done through IMPS using laptops and desktops. Funds are transferred from the bank account linked to your mobile number in association with a Virtual Payment Address. You will have to generate an MMID(Mobile Money Identifier), a seven-digit number. Subsequent to generating the MMID, you can use the services of IMPS. The maximum limit for IMPS can be between Rs. 10000/- to Rs. 5.00 lakhs. However, there is no minimum limit for IMPS transactions.

Also Check: Full Form of NEFT

Features of IMPS

The following are the features of IMPS.

Available Round The Clock

You can access IMPS round the clock to carry out funds transfers from one bank account to another bank account. You need not visit the branch, stand in long queues, fill out a form for transfer of funds. All you will require is a mobile and a mobile app of a bank to process the transaction. The service is available on all days, including Sundays and other Public Holidays.

Acknowledges Receipt

Once the IMPS transaction is completed successfully, a message will be received on the mobile that the beneficiary's account is credited with the funds.

Versatility in usage

IMPS can be used for the transfer of funds from person to person. It can also be used to transfer funds from a person to a merchant also.

Multi-purpose Usage 

IMPS can be used for various purposes. It can be used for the following besides person to person and person to merchant funds transfer.

  • Online shopping
  • Ticket booking
  • Payment of utility bills
  • Payment of insurance premium
  • Payment of School and College fees
  • Over - The - Counter payments

What are the details required for MPS?

Sensitive details like the beneficiary's bank account details aree not required for IMPS. All you need will be the name of the beneficiary, mobile number and MMID of the beneficiary. However, the funds' transfer can be done with the bank details and IFSC code of the beneficiary also. Accuracy of the details is essential to eliminate errors that could cause financial loss.

Additional Reading: How to get loans for bad credit?

What is the difference between NEFT, RTGS and IMPS?

Though funds transfer through NEFT, RTGS and IMPS are possible 24x7; there are yet some differences between the three digital funds transfer modes.

NEFT (National Electronic Funds Transfer)

This is an electronic mode of funds transfer between banks. It is a nationwide mode of funds transfer that can be done 24x7 and on all 365 days. The settlement, 

However, is done in hourly batches if received within the stipulated time frame, or else the settlement will be postponed to the next day. The time frame is 8 a.m. to 7 p.m. on weekdays and 8 a.m. to 1.00 p.m. on weekends. The minimum amount that can be transferred through NEFT is Rs. 1. Some banks have set a maximum limit of Rs. 10.00 lakhs for transfer of funds through NEFT.

RTGS(Real Time Gross Settlement)

RTGS, unlike NEFT, is a real-time settlement, i.e., the funds' transfer happens immediately and in hourly batches. There is a minimum limit if you are opting for RTGS. Only amounts above Rs. 2.00 lakhs can be transferred through RTGS. However, there is no maximum limit. If an immediate settlement is required for an amount above Rs. 2.00 lakhs then RTGS if the best and safest way of funds transfer.

IMPS (Immediate Payment Service)

IMPS is a mode of transfer that has advantages over NEFT and RTGS in the following areas

  • The settlement will be immediate, and there is no minimum amount stipulation for fund transfer through IMPS, unlike RTGS, where the minimum amount stipulated is over Rs. 2.00 lakhs.
  • Mobile are a platform for transferring funds through IMPS in liaison with Virtual Payment Address. You can do the transfer of funds even without sensitive information like the bank account details of the beneficiary, unlike in NEFT and RTGS. All that you will need is the name, mobile number and MMID of the beneficiary. However, you can also do the transfer with the bank account details and IFSC Code of the beneficiary.

Since mobile is a platform besides laptop and desktop, the transfer of funds can be literally done from anywhere and at any time if you have your mobile with you. But for NEFT and RTGS, you will need access to a laptop or a desktop. The transfers cannot be done without the bank details and IFSC code of the beneficiary.

IMPS is more economical than NEFT and RTGS. The comparison of fees and charges for all three are given below:

Amount

Charges for NEFT

Charges for RTGS

Upto Rs. 100002.50 plus GSTNot Applicable
>10000 upto 1.00 lakh5.00 plus GSTNot Applicable
>1.00 lakh upto 2.00 lakhs15.00 plus GSTNot Applicable
>2.00 lakhs upto 5.00 lakhs25.00 plus GST25.00 plus GST
>5.00 lakhs upto 10.00 lakhs25.00 plus GST25.00 plus GST

Charges for IMPS

Amount

Charges

0 to 1000Ranges from Rs. 2.50 to Rs. 5.00 plus GST depending on the bank
>1000 upto 1.00 lakhRs. 5.00 plus GST
>1.00 lakh upto Rs. 2.00 lakhsRs. 15.00 plus GST

Some of the banks, like Canara Bank, do not charge for IMPS up to Rs. 5000/-

In comparison, you can see that IMPS is the most economical and convenient mode of funds transfer.

Also Check: NOC Full Form

What are the things to be kept in mind while transferring funds through IMPS?

You should keep in mind the following factors while using the IMPS mode of funds transfer

  • Internet banking service or mobile banking application is a must.
  • A working internet connection or mobile data will be required.
  • There is no scope for errors. The data of the beneficiary should be entered accurately as the funds do not get recredited automatically in case of a failed transaction.
  • Sound knowledge of mobile applications and internet banking will also be required.

Additional Reading: How to read cibil report?

Conclusion

As the name suggests, IMPS Full-Form, i.e. Immediate Payment Service, is the fastest and most convenient method of online funds transfer. If you have a mobile banking facility in your mobile and your mobile number is linked to your bank account, you can start transferring funds to other bank accounts whenever the need arises. But the only disadvantage is that there is no scope for errors in IMPS as the money is not refunded automatically in case the transaction fails. Only the beneficiary can refund the money. Utmost care has to be taken while using IMPS in terms of the accuracy of input.

Additional Reading: How to check free cibil score?

IMPS FAQs

✅What is IMPS Full Form?

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IMPS full form is Immediate Payment Service.

✅Do you need an internet connection for IMPS?

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Yes. IMPS needs an internet connection if done using a Laptop or Desktop.

✅What do you need if mobile is the platform for using IMPS?

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Mobile application of a specific bank is required for using IMPS for funds transfer.

✅Does the customer need to have a bank to avail of IMPS?

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No. Customers do not need a bank account to receive funds through IMPS. They can avail of the service through Pre-paid Payment Issuer (PPI).

✅Can multiple bank accounts be linked to IMPS?

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Yes. Multiple bank accounts can be linked through either a single mobile application or through the mobile application of a specific bank.