<<–2/”>a href=”https://exam.pscnotes.com/5653-2/”>h2>IMPS: The Indian Mobile Payment System
What is IMPS?
IMPS, or Immediate Payment Service, is a mobile-based payment system in India that allows for instant fund transfers between bank accounts. It is operated by the National Payments Corporation of India (NPCI), a not-for-profit organization owned by banks in India.
How does IMPS work?
IMPS utilizes the mobile phone as a channel for initiating and authorizing financial transactions. It leverages the mobile Banking platform of participating banks to enable real-time fund transfers.
Key Features of IMPS:
- Instant Transfers: IMPS facilitates immediate transfer of funds between bank accounts, 24×7, 365 days a year.
- Wide Reach: It is available across all participating banks in India, covering a vast Network of users.
- Multiple Channels: IMPS transactions can be initiated through various channels like mobile banking apps, SMS, Internet banking, and ATMs.
- Security: The system employs robust security measures, including two-factor authentication and encryption, to ensure the safety of transactions.
- Convenience: IMPS offers a convenient and user-friendly way to transfer funds, eliminating the need for physical visits to banks or reliance on traditional methods.
Benefits of IMPS:
- Speed and Efficiency: IMPS enables instant fund transfers, eliminating delays associated with traditional methods.
- Accessibility: It provides 24×7 access to financial Services, allowing users to transfer funds anytime, anywhere.
- Cost-effectiveness: IMPS transactions are generally cheaper than traditional methods like bank drafts or wire transfers.
- Security and Reliability: The system employs robust security measures to ensure the safety and reliability of transactions.
- Convenience: IMPS offers a user-friendly and convenient way to manage finances, simplifying the process of sending and receiving Money.
How to Use IMPS:
1. Registration:
- Users need to register for IMPS through their respective bank’s mobile banking app or website.
- The registration process typically involves providing mobile number and linking it to the bank account.
2. Transaction Initiation:
- IMPS transactions can be initiated through various channels like mobile banking apps, SMS, internet banking, and ATMs.
- Users need to enter the recipient’s mobile number, account details, and the amount to be transferred.
3. Authentication:
- Transactions are authenticated using a one-time password (OTP) sent to the user’s registered mobile number.
- This two-factor authentication ensures the security of the transaction.
4. Fund Transfer:
- Once authenticated, the funds are transferred instantly to the recipient’s account.
- The user receives a confirmation message on their mobile phone.
IMPS Transaction Limits:
The transaction limits for IMPS vary depending on the bank and the user’s account type. However, generally, the maximum amount that can be transferred through IMPS is INR 2 lakhs per transaction.
Table 1: IMPS Transaction Limits
| Bank | Maximum Transaction Limit |
|---|---|
| State Bank of India | INR 2 lakhs |
| HDFC Bank | INR 2 lakhs |
| ICICI Bank | INR 2 lakhs |
| Axis Bank | INR 2 lakhs |
| Kotak Mahindra Bank | INR 2 lakhs |
Charges for IMPS Transactions:
The charges for IMPS transactions vary depending on the bank and the user’s account type. Some banks offer free IMPS transactions for certain account holders, while others charge a small fee per transaction.
Table 2: IMPS Transaction Charges
| Bank | Charges per Transaction |
|---|---|
| State Bank of India | INR 5 (for transactions above INR 10,000) |
| HDFC Bank | INR 5 (for transactions above INR 10,000) |
| ICICI Bank | INR 5 (for transactions above INR 10,000) |
| Axis Bank | INR 5 (for transactions above INR 10,000) |
| Kotak Mahindra Bank | INR 5 (for transactions above INR 10,000) |
IMPS vs. NEFT and RTGS:
IMPS is a real-time payment system, while NEFT (National Electronic Funds Transfer) and RTGS (Real-time Gross Settlement) are batch processing systems. This means that IMPS transactions are processed instantly, while NEFT and RTGS transactions are processed in batches at specific time intervals.
Table 3: Comparison of IMPS, NEFT, and RTGS
| Feature | IMPS | NEFT | RTGS |
|---|---|---|---|
| Processing Time | Real-time | Batch processing | Real-time |
| Availability | 24×7, 365 days a year | Specific time slots | 24×7, 365 days a year |
| Transaction Limit | INR 2 lakhs | No limit | No limit |
| Charges | Varies depending on bank | Varies depending on bank | Varies depending on bank |
Frequently Asked Questions (FAQs):
Q1: What is the minimum amount I can transfer through IMPS?
A: The minimum amount that can be transferred through IMPS varies depending on the bank. However, most banks have a minimum limit of INR 1.
Q2: Can I transfer money to a bank account in another country using IMPS?
A: No, IMPS is only available for domestic fund transfers within India.
Q3: Is IMPS safe?
A: Yes, IMPS is a secure payment system that employs robust security measures like two-factor authentication and encryption to protect user data and transactions.
Q4: What happens if I enter the wrong mobile number or account details while initiating an IMPS transaction?
A: If you enter incorrect details, the transaction will be unsuccessful. You will need to re-initiate the transaction with the correct details.
Q5: How can I check the status of my IMPS transaction?
A: You can check the status of your transaction through your bank’s mobile banking app, website, or by contacting customer support.
Q6: Can I reverse an IMPS transaction?
A: IMPS transactions are irreversible. Once the transaction is completed, the funds are transferred to the recipient’s account.
Q7: What are the benefits of using IMPS?
A: IMPS offers several benefits, including instant fund transfers, wide reach, multiple channels, security, and convenience.
Q8: How can I register for IMPS?
A: You can register for IMPS through your bank’s mobile banking app or website. The registration process typically involves providing your mobile number and linking it to your bank account.
Q9: What are the charges for IMPS transactions?
A: The charges for IMPS transactions vary depending on the bank and your account type. Some banks offer free IMPS transactions for certain account holders, while others charge a small fee per transaction.
Q10: What are the transaction limits for IMPS?
A: The transaction limits for IMPS vary depending on the bank and your account type. However, generally, the maximum amount that can be transferred through IMPS is INR 2 lakhs per transaction.