Wednesday, September 12, 2012

IMPS Vs NEFT/RTGS

Now that you all know Banks have started a new payment and money transfer system called Interbank Mobile Payment System (IMPS), the obvious question is why should we use it? What is good about this new channel over existing systems NEFT and RTGS? In this short blog I have tried to answer this question.

The biggest advantage of IMPS over other payment channels is that you can transfer money through IMPS even when you are not connected to the internet. This is possible because IMPS supports Short Messaging Service (SMS) to accept the request for money transfer. All one needs to do is to send an SMS to his/her bank in a predefined format with certain details and an automated system completes the transaction after checking the veracity of the details.

Another major advantage is that it is real time i.e. you receive the money instantaneously which is not the same in case of NEFT which follows batch processes. Since these batch processes are run only during working days and within working hours, you cannot remit or receive money during off-hours, weekends or on holidays. RTGS, though transfers money in real time, it has limitations when it comes to the days and time of use. But in case of IMPS, you can make transactions even on weekends and holidays. This service is available 24 x 7 x 365.

To know more about IPMS, you can follow these links:
http://www.npci.org.in/aboutimps.aspx
http://www.axisbank.com/personal/transfe-funds/interbank-mobile-payment-service/mobile/how-it-works.aspx
http://www.icicibank.com/mobile-banking/imps.html

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