Instant transfer funds to any bank (IMPS) through mobile phone

by khalid on 25/11/2010 · 2 comments

Banking has become more reachable to the common man as more than half of the Indians have mobile phone. From 22nd November 2010 onwards a unique scheme has been launched by National Payments Corporation of India (NPCI) called Interbank Mobile Payment Service (IMPS). This is first of its kind service in the world, which allows fund transfer between individuals through their mobile phones. It provides any time instant money transfer service through mobile phones to any other person registered for IMPS service in any of the participating banks.

As of now, interbank funds transfer is done through National Electronic Funds Transfer (NEFT). But issue with these transfers is the time lag as this is not a real time service and transactions are settled in batches. The other instant funds transfer service available in name of Real Time Gross Settlement (RTGS), but that has minimum transfer limit of 2 lakhs.

So RBI felt need for a real time and affordable fund transfer system to benefit the common man across the country (even to rural parts) and help their inclusion in country’s financial system. This will also reduce cash handling in country and RBI will have to print less currency notes.

There are more than 60 crores mobile phone users in India which is almost double of 30 crores bank accounts holder. So transfer through mobile phones make sense. Once everybody starts using IMPS, you will be able to pay even to taxi guy, local shopkeeper or subzi-wala using it.

IMPS is a 24×7 fund transfer system. It will have instant confirmation and simple and easy to use. It will be 100% secure cost effective too. There will be no need of computer or internet. As an introductory offer IMPS service is free till March 2011. After that the National Payments Corporation of India (NPCI) will charge 25 paise per transaction. RBI regulations cap the maximum amount to be remitted at Rs.50,000 a day.

Following Banks are providing the service of IMPS :-

* State Bank of India
* ICICI Bank Ltd
* Union Bank of India
* Bank of India
* HDFC Bank Ltd
* Axis Bank Ltd
* Yes Bank Ltd
* Coporation Bank
* Citibank
* Standard Chartered Bank
* Canara Bank

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{ 2 comments… read them below or add one }

RAKESH KUMAR JAIN January 24, 2011

Where can I get more details on how to use this service? Thanks, RAKESH


khalid January 24, 2011

Hi Rakesh,

You can contact your bank for using this mobile banking service. They will provide you full detail. There you have to fill a form for opting this mobile banking service. Thats it.



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