In a bid to make big-ticket fund transfer easier, the Reserve Bank of India (RBI) on Friday enhanced the limit the Immediate Payment Service (IMPS). From now on, bank customers can transfer Rs 5 lakh via IMPS. Earlier the limit for IMPS transfer was restricted at Rs 2 lakh.
Introduced in 2010, IMPS or Immediate Payment Service is a 24X7 service to transfer money real time. “IMPS is an emphatic service which allow transferring of funds instantly within banks across India which is not only safe but also economical,” National Payments Corporation of India (NPCI) said.
IMPS was the stepping stone to build a seamless mobile banking service in the country. It was launched to make banking transfer simpler with just the mobile number of the beneficiary. It was one of the earlier initiatives to enable bank customers to use mobile instruments as a channel for accessing their banks accounts and remit funds, as per NPCI.
To use IMPS fund transfer, user needs to register with the mobile banking service of the bank. The Mobile Money Identifier (MMID) and MPIN from the bank will be required to transfer money seamlessly. The the user needs to download mobile banking application to transfer money via IMPS. Some banks also provide IMPS facility over SMS.
On the objective of launching IMPS service in India, NPCI mentioned earlier that the aim was “to facilitate mobile payment systems already introduced in India with the Reserve Bank of India Mobile Payment Guidelines 2008 to be inter-operable across banks and mobile operators in a safe and secured manner.”
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Source: News18