What is IMPS and How Can I Use It to Transfer Money?

 What is IMPS and How Can I Use It to Transfer Money?

In India, an extensively used interbank electronic funds transfer system is called IMPS, or Immediate Payment Service. The way people send and receive money using their mobile phones or online banking has changed dramatically because to IMPS's secure, real-time money transfer capabilities. This post will explain the fundamentals of IMPS and show you how to use this practical payment method to send money with ease.

IMPS: What is it?

In India, there is an interbank electronic funds transfer system called IMPS, or Immediate Payment Service. People can use their internet banking accounts or mobile phones to send and receive money instantaneously. IMPS makes real-time transactions possible, allowing users to safely and conveniently transfer money. People can send money to friends and relatives, pay bills, make payments, and carry out other financial operations quickly and effectively with IMPS.

Features of IMPS

It's crucial to become familiar with the main features and considerations of IMPS before you start using it to send money online:

• Daily Transaction Limit: There is a Rs. 5 Lakh daily maximum limit for IMPS transactions. This cap guarantees that consumers' convenience and security are balanced.

• Transaction fees: Depending on the particular guidelines established by the individual banks, the fees related to IMPS transactions might range from Rs. 5 to Rs. 15. It is advisable to inquire about the relevant fees with your bank.

• Service Tax: IMPS transactions may be subject to an extra service tax on top of transaction fees. This tax is usually determined by the current tax laws and may change based on the particular bank and transaction.

• Interbank Transfer: IMPS offers a reliable, real-time fund transfer service that is available around-the-clock. Users may rapidly transfer money between banks using it, no matter when or where they are, which makes it more convenient and accessible.

• Cost-effective and safe: IMPS provides a safe way to move money between banks all throughout the nation. To guarantee the security of transactions, the system uses strong security mechanisms such authentication procedures and encryption. Additionally, IMPS transactions are frequently seen as economical, offering users a solution that is reasonably priced. 

Benefits of IMPS

One of the most widely utilized money transfer services, IMPS, has gained popularity due to a number of benefits it provides. The main benefits of IMPS are as follows:

• Quick, secure, and dependable: IMPS offers a quick, dependable way to send money. Since transactions are handled instantly, money is sent between accounts right away. Furthermore, IMPS uses strong security protocols to protect transactions, giving users a safe and secure platform for their money transfers.

• Accessibility across platforms: Users can enjoy the convenience and flexibility of IMPS by using it on both mobile and internet banking platforms. IMPS is a flexible payment method that you may use on your computer or mobile device. It is simple to begin and manage transactions.

• 24/7 availability: One of IMPS's main benefits is that it is always available. You can use IMPS to make transactions at any time, even on bank and public holidays. This guarantees that customers are not limited by regular banking hours and can transfer money anytime needed.

• Simple beneficiary addition: IMPS transaction beneficiary addition is a simple process. To add recipients as beneficiaries, users only need to provide their mobile number and MMID (Mobile Money Identifier) on IMPS mobile platforms. Bank account numbers are no longer required thanks to this shortened procedure, which also makes setting up future transactions easier.

• Instant notifications: IMPS makes sure that as soon as a transaction is finished, the bank notifies the payer and the payee. Users may be informed about the progress of their transactions and enjoy greater transparency thanks to this real-time notification option.

• Useful applications: IMPS is not limited to money transfers between bank accounts. In addition, it can be utilized for mobile banking, sending and receiving money, and paying merchants. Because of its adaptability, IMPS offers a comprehensive solution for a range of financial demands, going beyond basic payment transfers.

How Can I Use IMPS to Transfer Money?

To use IMPS to move money between bank accounts, take the following actions:

• Launch the mobile app for your bank or log in to your online account.

• Locate and tap or click the "Fund Transfer" button on the main page.

• Select "IMPS" as the funding transfer option.

• Input your MPIN (mobile personal identification number) and the beneficiary's MMID (mobile money identifier).

• Enter the desired transfer amount.

• Verify the information again, then touch or click "Confirm" to continue.

• To verify the transaction, you could occasionally receive an OTP (One-Time Password) on your registered mobile number.

• Input the OTP that you were given and adhere to the instructions to effectively finish the transaction.