IMPS (Immediate Payment Service ) is an instant, 24X7, interbank, electronic fund transfer service through mobile phones. IMPS facilitates use of mobile instrument as a channel for accessing bank accounts – thereby, enabling interbank fund transfers in a highly secured manner (with immediate confirmation). This facility is provided by NPCI (National Payments Corporation of India).
NPCI Circular NPCI/IMPS/OC No.26/2013-14 dated 14th August 2013 states that RRBs, UCBs and DCCBs can offer IMPS facility as a beneficiary to their customers.
The highlighted points of the above mentioned circular are:
- Any bank can offer IMPS Credit facility (i.e. as Beneficiaries) without the Mobile Banking license / approval from RBI
- P2P and P2A Transactions are allowed. For P2A – IFSC Code is required.
Any Bank which is not live on IMPS can become Sub-Member of Member Bank. Member Bank is the bank certified and approved by NPCI as a “Sponsor Bank” for IMPS Credit facility.
NPCI will issue unique NBIN (National Bank Identification Number) to each sub-member bank.
Any Bank can use shared Sarvatra® IMPS Switch to receive the remittance from other member banks that are live for IMPS.
Connecting to IMPS Credit Facility
- Any Bank can join for IMPS only as a “Beneficiary” under sub-membership model. The minimum requirements of sub-membership are:
- 24 x 7 available CBS
- Connectivity to a shared IMPS Switch provided by Sarvatra Technology (ASP)
- IMPS Switch infrastructure will be provided by Sarvatra Technology (ASP) certified by NPCI.
Benefits to banks
- Increased volume of transactions without physical banking
- IMPS will help in expanding mobile banking customer base (on account of lesser dependency on physical branch banking) and also in promoting Financial Inclusion