NEFT and RTGS are two systems to transfer funds from one account to another account. Many people in India use NEFT to transfer funds to another person. NEFT takes some time (max 4 hours) to transfer funds and on holiday and after working hours, this system does not work.
RTGS, on the other hand, is a real time fund transfer system but it has minimum requirement of INR 2 lacs. People transferring the funds less than INR 2 lacs cannot use RTGS for fund transfer. Like NEFT, RTGS does not work on holiday and after working hours.
Suppose, someone needs to transfer INR 10,000 to some other person on Sunday urgently. What will that person do?
That person cannot use NEFT and RTGS, being holiday. IMPS is the only option available in this case. This system works 24×7 without holiday and also immediate. Charges for NEFT, RTGS and IMPS are almost same.
Below is the FAQs related to IMPS which will help you to understand the IMPS:
1.What is IMPS?
Interbank Mobile Payment Service (IMPS) is an instant interbank electronic fund transfer service through mobile phones. IMPS facilitates customers to use mobile instruments as a channel for accessing their banks accounts and remitting funds therefrom.
2.Presently, how are interbank fund transfers made using mobile phone?
Various banks are providing remittance facility through their mobile banking platforms. The interbank remittance request initiated from a mobile is processed by the beneficiary bank as a National Electronic Fund Transfer (NEFT) transaction. The status of such payment request is therefore not known instantly because NEFT payments are processed in batches from 9 am to 7 pm. The NEFT transactions are charged by banks and charges vary from bank to bank
3.Does the customer need to have a bank account for availing IMPS?
Yes, the customer needs to have a bank account with the bank which has enabled this facility.
4.Does the customer need to register to remit the funds through IMPS?
Yes. Customer should enroll for Mobile Banking Service with the bank where customer has an account. The registration process shall be as per their bank’s laid down procedures.
5.Is the beneficiary customer also required to register for IMPS?
The beneficiary customer should have their mobile numbers registered with the bank where he/she maintain the account and where he intends to receive the credit and should have a valid MMID provided by the bank. No need to specifically enroll for Mobile Banking Service of the bank.
6.What beneficiary details does the customer need to affect an IMPS remittance?
The beneficiary details required are:
1. Beneficiary’s mobile number
2. MMID of the beneficiary customer
7.What is MMID?
Mobile Money Identifier (MMID) is a seven digit random number issued by the bank upon registration. Remitter (customer who wants to send money) and Beneficiary (customer who wants to receive the money) should have this MMID for doing this interbank funds transfer.
8.Can a customer link more than one account to the same mobile number?
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Yes. The customer can link the same mobile number to more than one account subject to bank offering that feasibility.
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9.Incase if the customer has more than one account linked to his / her mobile number how does he select the account from which he / she intends to pay?
The bank will allocate a Mobile Money Identifier (MMID) for each account of the mobile banking customers. The customer can select the account using this MMID allocated to him / her.
The combination of mobile number and MMID helps as a mistake proofing step for the remitter and tries to mitigate the risk of wrong credit in case the remitter enters erroneous mobile number.