Inter-Bank Mobile Payment Service

Inter-Bank Mobile Payment Service (IMPS) allows banks to facilitate real-time transfer and receipt of funds for account holders through their mobile phones. The funds can be transferred in same bank or different specified banks. The transfer can be done using mobile phones or the Internet banking facility at any time, including Sundays and bank holidays.

What mechanism is used?

Initially, the majority of interbank mobile fund transfer transactions were channelized through NEFT mechanism. Under NEFT, the transactions are processed and settled in batches, hence are not real time. Also, the transactions can be done only during the working hours of the RTGS system.

However, today the IMPS offers an instant, 24X7, interbank electronic fund transfer service through mobile phones. IMPS facilitate customers to use mobile instruments as a channel for accessing their bank accounts and put high interbank fund transfers in a secured manner with immediate confirmation features.

  • This facility is provided by NPCI through its existing NFS switch.
  • The eligible criteria for the Banks who can participate in IMPS is as follows
  • Bank should be member of National Financial Switch (NFS) driven by NPCI
  • Bank should have approval from RBI for Mobile Banking Service

When it was launched?

The National Payments Corporation of India had carried out a pilot on mobile payment system initially with 4 member banks viz State Bank of India, Bank of India, and Union Bank of India and ICICI Bank in August 2010. Later in the same year, Yes Bank, Axis Bank and HDFC Bank also joined. On November 22, 20120, the Interbank Mobile Payment Service (IMPS) was launched publicly in India.

How one can use this facility?

To use the facility of Inter-Bank Mobile Payment Service, the account holder is needed to register with respective banks. For the mobile banking service, they must register with their bank. This can be done online using the customer identity and IPIN provided by the bank or by downloading the mobile banking application form from the bank’s website and submitting the completed form at the nearest bank branch.

How does it work?

To use IMPS, the transferor and the beneficiary must have mobile money identifiers (MMID), which can be generated by accessing the account online, mobile banking or by sending SMS to the number specified by the respective bank.The transfer process is menu-driven and will require the transferor to provide his MMID and amount to be moved, as well as the registered mobile number and MMID of the beneficiary. An SMS alert of the debit to the transferor and credit to the beneficiary will be sent to both the parties once the transfer is made. The charges applicable are decided by the banks.

Some more points:

  • The mobile number and MMID of the beneficiary provided at the time of transfer must tally with the registered information with the bank before the transfer is complete.
  • The RBI has removed the Rs 50,000 limit on fund transfer through mobile banking, but banks specify limits based on their risk assessment.
  • The MMID can be cancelled by making the necessary request to the bank.

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