IMPS to make immediate money payment through mobile

Classroom

oi-Ambari

By Ambari Datta Gupta

Updated: Thursday, June 19, 2014, 8:42 [IST]

Have you seen the ad featured by a noted telecom provider where the dad scolds the son when he forgets to pay bills and the son immediately pays the bill through his mobile? Do you wonder about paying all your bills through your mobile anytime just like the boy in the ad instead of visiting the bank everytime? Well you don't need to be a tech savvy to do so. But knowing all about IMPS will help you in making the smart move.

The Interbank Mobile Payment Service (IMPS) allows you to make interbank electronic fund transfer round the clock from anywhere. It facilitates you to use the mobile instruments as a channel to access your bank account, carry on with your fund transfer and provides an immediate confirmation feature at the end.

Benefits: The benefits that you get from transferring money through IMPS include:

* Instant money transfer.

* 24x7 service including holidays.

* Bank account details need not to be disclosed.

* Time efficient compared to RTGS / NEFT.

Participants: In any IMPS transactions the participants are:

* Remitter (You).

* Beneficiary (Receiver).

* Banks

* National Financial Switch - National Payment Corporation of India (NPCI).

Registration of the Sender: When you are the remitter you need to go through the following steps to register to IMPS:

1. Register for mobile banking service with your bank.

2. Get the 7 digit Mobile Money Identifier (MMID) and MPIN from the bank.

3. Download the software / use the SMS facility if the banks provide IMPS on SMS.

Registration of the beneficiary: The beneficiary (receiver) too has to register himself to receive funds through IMPS. The steps include:

1. Link the mobile number to the account in the respective bank.

2. Get the MMID from the bank

You can transfer money through either by using the mobile umber and MMID or Account Number and IFSC. For receiving, you have to share your mobile number and MMID with the sender.

Transaction charges and limit

Transaction charges vary with banks as individual banks have their own charges. The maximum limit for IMPS is Rs.50,000 per day.

Conclusion

If you opt for transferring funds through IMPS then you must know the transaction fee of the bank through which you will be sending the money. Extra care should be taken when you enter MMID, MPIN, account number, IFSC code in your mobile.

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