Interbank Mobile Payment Service (IMPS) Transfer funds to any bank account via Mobile

A new service that is set to revolutionize the retail money payment sector inIndia, consumers will now be able to transfer money from their accounts to any other account in the country using their cellphones via theNational Payment Corporation of India s(NPCI)Inter - bank Mobile Payment Service(IMPS).

The NPCI is the umbrella organization for all retail payment systems in the country owned and operated by banks.

It is Indias first instant, real-time, 247fund transfer facility in the retail payment sector.

Sending and Receiving money made easy

I wish to send money

Register yourself for mobile banking service with your Bank Get your MMID and MPIN from your Bank Download and activate the mobile banking application on your mobile phone or initiate the transaction using SMS syntax and number prescribed by the bank. Get beneficiary Mobile number and MMID Send money to the beneficiary following the menu options in the mobile banking application Check the confirmation SMS for debit to your account and credit to beneficiary account

I wish to receive money

Register your mobile number with your bank to link to your account. Get your MMID from your Bank Share your Mobile number and MM id with the remitter Ask the remitter to send money using your Mobile number and MM id Check the confirmation SMS for credit to your account from the remitter

A Comparative Study
ADVANTAGES DISADVANTAGES
Sender and receiver both need a bank account, unlike money transfer through post offices Both sender and receiver's bank should be a part of the system Requires documentation to start the service that may discourage unorganized sector Large transfers not possible as now. It has a cap of Rs. 50,000

Easy to use, Requires no special handset Remittance on real-time basis making it the fastest system to send and receive money No physical cash handling. Saves on time required to visit bank Safe and more credible, as managed by a government body

MMID - Definition Mobile Money Identifier ( MMID ) is a seven digit random number issued by the bank upon registration.

Remitter (customer who wants to send money) and Beneficiary (customer who wants to receive the money) should have this MMID for doing this interbank funds transfer.

IMPS Service Providers This service has been launched with seven banks viz. State Bank of India, Bank of India, Union Bank of India, ICICI Bank Ltd , HDFC Bank ltd , Axis Bank ltd and Yes bank offeringIMPS.

Seven more are linking up through this network. Gradually, all 50 banks licensed by the RBI are expected to offer the service.

IMPS - Feature
24*7 Fund transfer facility. Real time execution of InterBank fund transfter,takes lesser then a minute. No need to have and expensive mobile with GPRS feature, fund transfer can even be made via SMS. Service will be provided to users free of cost till 31/03/2010 post that nominal charges will be recovered per transaction.(.25 paisa /Rs100). IMPS rides on existing NFS Interbank ATM transaction switching infrastructure and the message format which was co-developed with MPFI. Thus easy for banking industry to adopt and if the bank already had the mobile banking solution,only minimal charges are required at the banks end to implement this service.

Requisites for IMPS

Banks wishing to provide mobile money services shall seek prior one time approval of the Reserve Bank of India, by furnishing full details of the proposal. Only banks who have implemented core banking solutions would be permitted to provide mobile Money services. Banks shall put in place a system of document based registration with mandatory physical presence of their customers, before commencing mobile Money service. To meet the objective of a nation-wide mobile banking framework, facilitating inter-bank settlement, a robust clearing and settlement infrastructure operating on a 24x7 basis would be necessary. Pending creation of such a national infrastructure, banks may enter into bilateral or multilateral arrangement for inter-bank settlements, with express permission from Reserve Bank of India, unless such arrangements have been authorized by the Reserve Bank under the Payment and Settlement System Act, 2007. Only Indian Rupee based domestic services shall be provided. Use of mobile Money services for cross border inward and outward transfers is strictly prohibited.

Thank You