The Immediate Payment Service (IMPS) is becoming the preferred money-transfer channel, reports Pranay Lakshminarasimhan in Mumbai. At 94 million, the number of transactions in the June quarter was over twice that seen in Q1FY16, while at Rs 71,673.51 crore the increase in value was 120%.
The number of transactions in June alone was close to three-fourths those in Q1FY16. Unlike with the National Electronic Funds Transfer (NEFT) where the transaction is settled in a scheduled time slot, money is transferred instantly via IMPS. It seems to be increasingly the pick over NEFT for smaller-value transactions. Once the Unified Payment Interface (UPI) based on the IMPS platform is launched, it could become the number one mode of interbank funds transfer in the country.
Unlike the NEFT and and Real-Time Gross Settlement (RTGS), which operate between 9 am and 4.30 pm (6.30 pm for transactions within the same bank), the IMPS platform is available 24×7. Further, unlike NEFT and RTGS, IMPS is not confined to only bank accounts and is used by e-wallets and payment platforms as well.
Dilip Asbe, chief operating officer at National Payments Corporation of India, believes the penetration of IMPS is still very low and that even after the UPI goes live, it could be a while before the system stabilises. “However, it is very likely that after UPI stabilises there will be a noticeable shift to IMPS from NEFT by individuals,” Asbe said.