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Immediate Payment Service

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6-455: Immediate Payment Service ( IMPS ) is an instant payment inter-bank electronic funds transfer system in India . IMPS offers an inter-bank electronic fund transfer service through mobile phones. The service is available 24/7 throughout the year including bank holidays. National Electronic Funds Transfer (NEFT) was also made available 24/7 from December 2019. Real-time gross settlement (RTGS)

12-580: Is a method of electronic funds transfer , allowing for almost immediate transfer of money between bank accounts. This was in contrast to the previous transfer times of one to three business days that had been in place until the mid-2010s. Since the mid-2010s many countries have implemented instant payment systems that speed up the transfer between bank accounts in response to customer demand for faster transactions. The Euro Retail Payments Board (ERPB) in 2018 defined instant payments as: Electronic retail payment solutions available 24/7/365 and resulting in

18-526: The banking systems from the 1970s onwards, the same timeframes and processes were used to settle these electronic payments. The growth of e-commerce since the 2000s has caused a change in people's spending patterns and expectations. Shopping is no longer confined to regular business hours, creating new challenges for funds transfers. Similarly, merchants require faster and more reliable money transfer systems to keep up with consumers' demands. Traditional electronic payments like bank transfers , that perform

24-413: The immediate or close-to-immediate interbank clearing of the transaction and crediting of the payee’s account with confirmation to the payer (within seconds of payment initiation). Originally clearing of payments was based on the cheque clearing cycle that required physical cheques to be exchanged by banks at clearing houses for payments to be made between bank accounts. When electronic payments entered

30-685: The mobile payment system with 4 member banks ( State Bank of India , Bank of India , Union Bank of India and ICICI Bank ), and expanded it to include Yes Bank , Axis Bank and HDFC Bank later that year. IMPS was publicly launched on 22 November 2010. As of April 2023, there are 722 member banks which signed up for the IMPS service. Around 200 million IMPS transactions amounting to roughly US$ 20 billion of transaction amount happen every month in India. Instant payment Instant payment (sometimes referred to as real-time payment or faster payment )

36-608: Was also made available 24/7 from 14 December 2020. Unified Payments Interface is built on top of IMPS, with the key architectural work done by the Mobile Payments Forum of India , IIT Madras and IDRBT . It is managed by the National Payments Corporation of India (NPCI) and is built upon the existing National Financial Switch network. In 2010, the NPCI initially carried out a pilot for

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