What is IMPS: Full Form, Meaning & Benefits

• IMPS stands for Immediate Payment Service and enables fund transfers on a real-time basis. You can initiate the transfer 24/7 at your convenience.
• It supports money transfers across different channels like mobile, internet, bank branches, ATM and SMS.
• Some of the many benefits of this service include instant transfers, along with round-the-clock availability and flexibility to choose a convenient channel to execute different transactions.

With evolving technology, transferring money between bank accounts has gotten simpler and faster than before. IMPS (Immediate Payment Service) is one of the fund transfer methods that you can use to transfer money instantly.Through this blog, you'll learn about IMPS and its advantages that make it one of the most popular ways of money transfer. You will also find out how it works and simplifies the money transfer process. Let’s get started.

IMPS is an instant, 24X7, interbank electronic fund transfer service offered by the National Payments Corporation of India (NPCI) . It provides the flexibility to initiate fund transfers across various channels, such as mobile apps, internet, and ATMs.Thus, you can transfer money at any time from anywhere using any of the authorised channels, irrespective of banking hours and bank holidays. Also Read: Looking to Transfer Money Online? Keep These 4 Points in Mind For a Safe and Smooth Transfer

If you are new to IMPS and unfamiliar with how it works, here are some of the key benefits that you should know of.

• Instant and Round-the-Clock Availability : As stated earlier, IMPS facilitates fund transfer on a real-time basis. You can initiate the transfer at any time, 24 hours a day, 7 days a week.
• Ensures a Safe and Secure Execution : IMPS employs a robust security system, including two-factor authentication (2FA). This is done to ensure safe and secure money transfer between bank accounts, reducing the chances of fraudulent transactions.
• Flexibility to Choose a Convenient Channel : Multiple channels support the fund transfer, thereby making IMPS even more convenient to use. These channels include mobile, internet, bank branch, ATM, and SMS.
• Comfort of Executing Different Transactions : It supports person to person (P2P) and person to account (P2A) transfers. Apart from sending and receiving money, it also supports foreign inward remittances.

Let’s talk in detail about the different methods of IMPS through which you can send money from one bank account to another.

P2P Transfer Using Mobile Number and MMID

MMID stands for Mobile Money Identifier and is a 7-digit code. It is generated through a one-time process and is linked to your mobile number. You must note that you can link multiple MMIDs to your mobile number. Talk to your bank to know more about the issuance of MMID.Now that you know what MMID is, let’s learn about the general steps to make P2P transfers.

• Step 1: Login to your IMPS-enabled mobile/net banking account.
• Step 2: Navigate to the fund transfer option.
• Step 3: Next, select IMPS and choose P2P transfer.
• Step 4: Mention the recipient’s mobile number and MMID. Put in the transfer amount.
• Step 5: Authorise the transaction to transfer the funds.

P2A Transfer Using Account Number and IFSC Code

The IFSC (Indian Financial System Code) is an 11-digit alphanumeric code, unique for every bank and its branches. It is usually found on the top left corner of every cheque leaf of your cheque book.Once you have the account number and IFSC of the recipient, you can initiate P2A transfer through these general steps.

• Step 1: Go to your online banking account.
• Step 2: Browse to the fund transfer menu and add the beneficiary.
• Step 3: Once the beneficiary is added, go to the fund transfer option again.
• Step 4: Select IMPS and opt for P2A transfer.
• Step 5: Choose the beneficiary and fill in the amount details.
• Step 6: Authorise the fund transfer.

Today, ATMs provide functionalities beyond cash withdrawals. You can seamlessly transfer funds to another bank using an ATM that supports such transfers. Simply follow the instructions as they appear on the ATM screen.We have listed the steps that are typically followed for your reference:

• Step 1: Insert your card in the ATM and enter your PIN, when asked for.
• Step 2: Choose the fund transfer or similar other option.
• Step 3: Select the beneficiary or enter the recipient’s mobile number and MMID, as applicable.
• Step 4: Fill in the relevant details including the transfer amount.
• Step 5: Confirm the transaction to execute the payment.

Registering your mobile number with the bank is a prerequisite. Once your number is registered, follow these general steps.

• Step 1: Ask your bank for the text instructions to be sent. Also, confirm the number on which it is to be shared.
• Step 2: Type the text in the given format and mention the relevant details as instructed.
• Step 3: Send the message and initiate the transfer.

IMPS gives you the freedom to transfer money at any hour of the day through your preferred channel. If you have not used IMPS yet, you should consider exploring it to experience hassle-free money transfers.Apart from making payments, you can also leverage it to invest in mutual funds. Mutual funds can not only generate inflation-adjusted returns but also create a sizeable corpus over the long term. From equity to debt to hybrid, there are a variety of mutual funds that you can choose from. Build a customised portfolio and start saving for the future today! Also Read: Looking to Transfer Money Online? Keep These 4 Points in Mind For a Safe and Smooth Transfer