Immediate Payment Service (IMPS)

Immediate Payment Service (IMPS) is a robust and real time payment service that has transformed the payments and settlements systems in India. The facility was launched by the National Payments Corporation of India (NPCI) on 22nd November, 2010.

How was the evolution of Immediate Payment Service (IMPS)?

NEFT and RTGS were the two major digital channels available for payments in India. Since early 2000, Indian banking system has been undergoing a transformation. Even after the banks embracing technology for customer delight, NEFT and RTGS remained the major electronic channel for fast fund transfer. These services were available to customers only during banking hours.

The lack of a facility for real time fund transfer remained as a hurdle for the next level of metamorphosis of banking services. To overcome the shortage, NPCI initiated a pilot study in August 2010 with the help of major banks in India, leading to the launch of IMPS service in November 2010. NPCI provides the service through its existing NFS switch.

What are the features of Immediate Payment Service (IMPS)?

Immediate Payment Service is a real time and 24X7X365 facility for fund transfer. The service supports intra-bank and interbank customer to customer fund transfer, even on bank holidays. The IMPS service can be integrated with multiple digital channels like Mobile (App, SMS, USSD, WAP), internet banking and ATM. IMPS service can be availed through branches too.

Can Immediate Payment Service (IMPS) be used without registration?

For using IMPS based services through internet banking platform or ATM, no specific registration is required. However, to use the IMPS through mobile banking channel, the mobile number requires to be registered. On registration, the customer is provided with a Mobile Money Identifier (MMID), a seven digit code and an MPIN which acts as a transaction password.

Since, registration of mobile number with the bank is mandatory for availing digital banking facilities, no separate registration is required. Almost all mobile banking apps provided by banks have integrated IPMS to the app and registration happens automatically during activation of mobile app.

What are the different modes of payments using IMPS?

Immediate Payment Service supports the following types of payments:
Fund transfer using Mobile number and MMID (P2P)
Fund transfer using account number (P2A)
Fund transfer using Aadhaar Number (ABRS)
Push merchant payment using Mobile number and MMID (P2M)
Pull merchant payment using mobile number and MMID (P2M)
IMPS using USSD channel

IMPS based push payments
Payer, the person to make payment, initiated transactions fall under push payment or transactions. Suppose ‘A’ has to make payment to ‘B’ in exchange for goods or services or to settle a debt. Here ‘A’ is the payer and ‘B’ is the payee. If the payment is initiated by ‘A’ it comes under the category of push transaction. It is akin to ‘I (payer) pay your money’. Transaction initiated for mobile recharge is an example for push transaction.

IMPS based pull payments
When the payee, the person to receive money, initiate the transaction to receive the money, the transaction or payment falls under pull payment. In the above example, if ‘B’ originates the transaction, it falls under the pull payment. Pull means ‘I (payee) demands the money’. Payments in the nature of auto debit of monthly instalments for goods or services or loan repayments falls under the category.

IMPS based push merchant payments
In this type of transaction, a customer ( buyer) in a merchant outlet initiates the transaction from his mobile for payment for the goods by entering merchant credentials like merchant’s mobile number, MMID and payment details and authorises the transaction by using own MPIN.

IMPS based pull merchant payments
The transactions happening in the e-com websites are examples of this kind of transaction, where merchant initiates demand for payments. For example, a customer visits the website of the merchant (seller) and makes the payment by entering customer’s credentials such as his own MMID and mobile number. Instead of M-PIN, he enters OTP received in his phone.