In this blog post, we will give an introduction to Immediate Payment Service, and What is IMPS? in detail.
We will explain what Imps is, and how it works, We will also discuss some of the benefits of using Imps.
With IMPS, money can be transferred using multiple channels, like mobile, internet, ATM and SMS, and it’s available 24 hours a day 7 days a week with no holidays or restrictions.
In addition to offering fast and easy money transfers in real-time, IMPS also lets you transfer funds at cheaper rates than banks when sending funds between accounts held at different banks in India.
What is IMPS?
Banking industry faced a major challenge when it came to transferring funds in real time and 24X7X365 and During banking hours, users were only able to transfer funds using NEFT & RTGS.
This context led to NPCI’s pilot study in August 2010 with banks like SBI, BOI, UBI and ICICI.
In September, October and November 2010, Yes bank, Axis and HDFC bank also joined this league.
In November 2010, the Immediate Payment Service (IMPS) was publicly launched by Smt. Shyamala Gopinath.
Now that this service is available to Indians, it has been launched by the DG of RBI at Mumbai..
With IMPS, you can transfer funds electronically between banks in real time 24 hours a day, 7 days a week, using multiple channels such as mobile, internet, ATM, and SMS.
In addition to being an emphatic service, IMPS also offers a safe and economical method of transferring funds between banks in India.
As of right now, there are more than 666 members live on IMPS, including banks and PPIs.
Read More: What is IMPS Transfer? – Ultimate Guide on IMPS
Why is Immediate Payment Service (IMPS)?
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IMPS is a quick, efficient way to accept payments from customers in another country.
It works by using a digital currency called “IMPS” that is accepted by most financial institutions in the specified country.
The payment method is quick and easy, and the service provider doesn’t need a physical presence to serve customers.
IMPS can be used to manage business expenses like hosting a seminar, providing travel services, or delivering a custom product. It’s also used to manage ticket sales and other event-driven payments.
How Does Immediate Payment Service Work?
To set up an IMPS account, a business opens an Account with a service provider.
The service provider agrees to accept payments in “IMPS” for the goods and services the business purchases from time to time.
The service provider then holds an address for the business. When a customer asks for a service, the customer’s account is debited in “IMPS” and the service is provided.
When a customer pays for a service using “IMPS,” the customer’s account is credited in “old” currency.
At that point, the customer can use their “old” currency at a local store, restaurant, or pub to pay for the service.
Some businesses use the service for recurring services, like monthly hosting fees for business meetings.
In that case, the service provider holds an address for the business and when the event is over, the service provider will release the address to the owner, who can then use the address to receive payments from customers.
Some companies choose to use a third-party host that they manage themselves.
In that case, the host will hold the address and release it to the owner when the service is complete.
What is IMPS in banking?
While many of these payment methods take 24 hours or more to reach a destination, IMPS reaches destinations in less than an hour.
To use IMPS, a business sends money to the account of the service provider.
The service provider then sends the payment to the bank that the account is connected to.
Like all banks, the bank will hold the funds until the agreed payment is made.
IMPS may be used by customers to make purchases online. It’s also used to manage daily banking activities, like paying bills and accessing money transfer services.
How do I send money using IMPS?
To send money using IMPS, you need to know your customer (NPCI) code and bank account number of both sender and receiver.
You can then login into your bank’s online portal and follow instructions on how to transfer funds via IMPS.
The amount will be debited from your account immediately but may take up to 1 business day for credits into the recipient’s account depending upon their bank’s policy.
Which is faster IMPS or NEFT?
RBI, which is India’s central bank, offers the Instant Payment Service, which is a fast way to transfer funds between different banks.
IMPS is also called Immediate Payment Service which can send money instantly, in few minutes or few hours within little time span and it works everyday for 24/7.
Similarly, NEFT works only during banking hours and it takes hours to get transfer the amount from one bank to another bank.
NEFT is the less expensive option, but it works for cash transactions, too.
So, if you want faster access to cash, but don’t mind paying a little more, go with NEFT.
Benefits of Using IMPS
For one, it’s a convenient way to accept payments. Instead of having a long line of customers waiting to give you their money, you can accept the payment online and release the address to the owner when the service is complete.
Because the customer has the address, they can easily find you again when they’re looking for a company.
Steps You Should Take Before Accepting Payments with IMPS
If you’re accepting payments online with IMPS, you should have a few steps in place to protect yourself from fraud.
For example, you can use a wallet option to store the key to your bank account, so that the customer doesn’t have to type in their information when they make a payment.
Staying informed is also key, especially when it comes to payments. You should keep tabs on your customers, what they’re paying for, and when the payment is expected to be received.
This way, you can avoid delays and fraud, Keep your doors open and your marketing materials updated.
When a customer walks into your store, your website, and your email box, you should all be open and running.
If you have an online presence, your blog, social media, and your subscription box should all be updated regularly.
More Info on IMPS and Banks in India
Many of the Indian banks have partnerships with local financial institutions, which allow them to offer IMPS.
For example, in the state of Uttar Pradesh, Axis Bank offers the facility with HDFC Bank.
The use of this service is pretty much standard in the country, so the only thing that might set it apart is the fact that it’s only available through a few banks.
The Internet has made it easier than ever to sell products and services to consumers around the world, But some of the ease comes at a cost.
Traditional brick-and-mortar companies must close physical doors and shutter offices to serve customers in other countries.
This means that businesses cannot easily access customers abroad, making it more difficult for smaller companies to grow their businesses.
The result is a lot of small businesses looking to reach new markets that don’t currently have business relationships with large companies.
Now more than ever, business needs to expand and reach new customers. With the help of IMPS, it’s easier than ever to sell to people in other countries.