How does IMPS work?
Curious about Immediate Payment Service
IMPS (Immediate Payment Service) works based on the National Payments Corporation of India's (NPCI) infrastructure and guidelines. Here's a stepbystep explanation of how IMPS works:
1. Registration: To use IMPS, you need to have an active bank account with a participating bank and register for mobile banking or internet banking services offered by your bank. You may need to link your mobile number with your bank account and generate a Mobile Personal Identification Number (MPIN) for secure transactions.
2. Initiating the Transaction: Once you are registered, you can initiate an IMPS transaction using one of the following methods:
a. Mobile Banking App: Download and install your bank's official mobile banking app on your smartphone. Log in using your credentials and navigate to the IMPS or Fund Transfer section. Enter the recipient's details, such as their bank account number and IFSC, MMID and mobile number, or Aadhaar number, along with the transaction amount.
b. Internet Banking: Access your bank's internet banking portal through a web browser. Log in with your credentials and navigate to the IMPS or Fund Transfer section. Provide the recipient's details, transaction amount, and choose the appropriate transfer mode.
c. Other Channels: Depending on your bank, you may also be able to use other channels such as ATMs, USSD (Unstructured Supplementary Service Data), or bank branches to initiate IMPS transactions.
3. Authorization and Confirmation: After entering the necessary details, you will be prompted to authorize the transaction using your MPIN or other authentication methods provided by your bank. This step ensures the security and validation of the transaction.
4. Transaction Processing: Once the transaction is authorized, the sender's bank sends the transaction details securely to the NPCI's IMPS system. The NPCI acts as a central clearinghouse, facilitating the transfer of funds between banks.
5. Fund Transfer: The NPCI verifies the transaction details and communicates with the recipient's bank to initiate the fund transfer. The recipient's bank receives the instruction and credits the funds to the recipient's bank account in realtime. The transaction is completed instantly, and both the sender and recipient receive a confirmation message.
6. Transaction Status and Acknowledgment: You can check the status of the transaction through your bank's mobile banking app or internet banking portal. Additionally, you will receive an SMS or notification confirming the successful completion of the transaction.
It's important to note that specific steps and interfaces may vary slightly depending on the participating bank and the channel used for initiating the transaction (mobile app, internet banking, etc.). It is recommended to refer to your bank's guidelines and follow the instructions provided by your bank's official channels to ensure a smooth IMPS transaction.