Instant Inter-Bank Funds Transfer Using IMPS (Inter-Bank Mobile Payment Service)

Did you know, you can transfer funds instantly across banks using your mobile ?? National Payments Corporation of India (NPCI) has launched a facility called Inter-Bank Mobile Payments Service(IMPS) on 22nd November, 2010. At present in India, there are close to 60 crore mobile users which is much higher than bank account holders that is 30 crores so allowing funds transfer by mobile will really make a lot of sense for the customers. This blog post will describe at length how to make use of this facility and what are its main features and current limitations.

One natural question arises as to How is it different from NEFT (National Electronic Funds Transfer) and other transfer facilities like RTGS (Real Time Gross Settlements) ??

  • NEFT(National Electronic Funds Transfer) : As of now, we all can use National Electronic Funds Transfer(NEFT) for Inter-Bank Funds Transfer but it is not a real time service. It usually takes up to 48 hours to get the funds transferred. Hence the main drawback with NEFT is the time-lag.
  • RTGS (Real Time Gross Settlement) is another service, which can be used for Instant Inter-Bank Funds Transfer. Unfortunately it is not designed for common man. Here the minimum transfer amount is 2 Lakhs and this service is  available only during banking working hours, but the good thing about RTGS is its an instant service.  So you could say Special Service for Special People (Read Rich) 🙂
  • IMPS (Inter-Bank Mobile Payment System) is designed keeping rural India in mind, where mobile density is pretty good compare to banking sectors’ penetration. So now even common man (of course with less than 2 lakhs 😉 in their account) can transfer funds across banks instantly  IMPS (Inter-Bank Mobile Payment System) is 24×7 fund transfer service and its instant,automated,real time and simple to use as well.

Transfer Process:
At first a mobile customer has to register with his bank to activate mobile banking by installing a special application available at

Even if you phone is not supporting these applications, there is no need to worry. You can complete the transaction via SMS as well. After that a bank account holder will have to get a unique 7 digit number called MMID (Mobile Money Identifier).

What is MMID (Mobile Money Identifier):
Mobile Money identifier(MMID)
is a  7 digit number offered by IMPS by which we can send money instantly from our savings bank account using our mobile number.

Steps involved in transferring the money:

  1. Enter beneficiary’s 10 digit mobile number
  2. Enter beneficiary’s 7 digit MMID number
  3. Enter the amount you wish to transfer
  4. Provide bank authentication (user/customer ID and MPIN).
  5. Once your details are authenticated, the money is transferred instantly from your account.
  6. You will also receive an SMS with the transaction status

Steps involved in receiving the money:

  1. To receive money to your account via instant money transfer you will need to share your mobile number and MMID with the payee

Complaint:
In case of any problem you can register your complaint by placing a call to Call Center/Customer Care Toll-Free Number 1800 22 22 44. You can also register at the respective branches.

What all banks offer this facility ??
You will be happy to know that currently this service is available for customers having an account in Axis Bank,HDFC Bank, State Bank of India,Bank of India,Kotak Bank,Union Bank of India,Corporation Bank, Lakshmi Vilas Bank,Yes Bank. Soon, it will be made available to other bank customers as well.

Limitation:
The Maximum amount that can be transferred in a day has been set as Rs 50,000.

The most important part is this service IMPS (Inter-Bank Mobile Payment Service) is free till March 2011 an. Although nothing to loose sleep over, even after that NPCI (National Payments Corporation of India) will only charge 25 paise per transaction, which is fairly nominal.

So no need to have passbook or to go to bank ,just have your mobile and you can pay anyone like shopkeeper,auto man etc,if you have money in your account 🙂

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3 responses to “Instant Inter-Bank Funds Transfer Using IMPS (Inter-Bank Mobile Payment Service)

  1. On how would i know or be able to access to account if i have one existing account thats that i can access to now

  2. Please send me details of my bank account statement

  3. Mohan Swaroop

    can we use this service to send money india to nepal also? Becouse NEFT service is already avialible between sbi and nepal sbi bank.

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