Features And Benefits Of Imps

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"IMPS is one of the most convenient forms of fund transfers today. IMPS stands for Immediate Payment Service. Under IMPS, payment is made immediately from the payer to the recipient. IMPS transfers money outside of the banking system which means payments from IMPS get done at any time of the day even outside banking hours. The IMPS transfer is immediate.

Features of IMPS:

1. IMPS transfer is available 24x7 for 365 days in a year. Since it operates out of the banking channel, it can be used at any point of time.
2. IMPS is completely operated on the customer’s mobile phone.
3. IMPS transfer is immediate. The sum is immediately debited from the sender’s account and it gets credited to the recipent’s account.
4. There are three types of IMPS:
a. Person to person IMPS transfer using mobile number of the recipient and the mobile money identifier (MMID)
b. Person to person using bank account number of the recipient and the bank IFSC code
c. IMPS merchant payment
5. To get started with IMPS, the person has to register himself for the service with his respective bank. Once registered, he needs to set up a MMID which is a 7 digit code that his bank issues to him for this service.
6. To use IMPS, both the sender and recipient of funds need to have MMID from their respective bank.
7. IMPS can be accessed from the mobile banking application of the respective bank.
8. IMPS is a homegrown payment channel started by the National Payments Corporation of India (NCPI)
9. IMPS charges differ from bank to bank. Most banks price their services between Rs. 5 and Rs. 15 depending upon the amount of transfer. GST is charged on the IMPS charges.
10. It is possible to add a beneficiary under IMPS using mobile banking or internet banking.

Benefits of IMPS:
1. IMPS transfer is immediate. The amount gets credited to the recipient’s account immediately.
2. IMPS can be used on the mobile phone which provides a lot of convenience to the person making the payment.
3. IMPS makes the person completely mobile since there is no need to be in front of a desktop or a PC to make a payment.
4. IMPS transactions are secure since each transfer is authenticated with the MMID.
5. These transactions can even be done on holidays.
6. In case the customer does not receive the funds for whatever reason, the funds will get credited to the sender’s account.

Author Bio:- Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about IMPS. Through her work, she has mentioned about its features and benefits