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Immediate Payment Service

Immediate Payment Service
Operating areaIndia
Founded22 November 2010; 14 years ago (2010-11-22)
OwnerNational Payments Corporation of India
Websitewww.npci.org.in/what-we-do/imps/product-overview

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.[1] Real-time gross settlement (RTGS) was also made available 24/7 from 14 December 2020.[2]

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 Institute for Development and Research in Banking Technology (IDRBT).[3][4][5][6]

History

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Immediate Payment Service 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 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.[7]

Around 200 million IMPS transactions amounting to roughly US$20 billion of transaction amount happen every month in India.[8]

IPMS Statistics [1]
Year Member banks INR value (in mn) USD value (in bn)
2024* 909 7070902.52 818.87
2023 827 61908887.5 744.01
2022 684 49346951.5 608.02
2021 663 29324894.9 384.28
2020 620 26838329.3 363.76
2019 559 21819802.3 307.98
2018 394 13926164.8 188.21
2017 303 7660254.3 117.96
2016 190 3114447.1 46.11
2015 124 1328077.9 19.89
2014 73 390365.9 6.41
2013 59 33363.4 0.54

Interoperability

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On March 4, 2024, the Reserve Bank of India (RBI) declared its intention to introduce an interoperable payment system for online banking transactions. The implementation of such an interoperable system has been approved for NPCI Bharat BillPay Limited (NBBL), and it would be introduced in 2024, according to RBI Governor Shaktikanta Das.[9][10] It was included in the Payments Vision 2025 document, which was published in June 2022 by the Reserve Bank of India's Department of Payment and Settlement Systems.[11]

After RBI approved the project in March 2024, NBBL, banks, and fintech companies are negotiating to adopt internet banking or net-banking interoperability. The three biggest players in the net-banking industry, HDFC Bank, State Bank of India, and ICICI Bank, are now negotiating to join the initiative. It will allow for data visibility, appropriate consumer grievance procedures, standardization of merchant settlement cycles, and will expand the payment market potential due to increased merchant integration and competition from payment aggregators. The primary use cases of net-banking include payments to vendors, insurance premiums, mutual funds, and income taxes. Currently, each bank must collaborate with a different payment aggregator in order to allow consumers to conduct net-banking transactions. Interoperability makes it possible for any aggregator to let a bank's customers pay online via net-banking.[12][13]

In order for net-banking and mobile banking payments to be interoperable, NPCI has started the integration process for five to six banks. In the last quarter of 2024 or the first quarter of 2025, the system will be put online. The integration between HDFC Bank and ICICI Bank is already well progressed. Customers can opt to use net-banking to pay online when they check out of e-commerce sites because banks won't need to partner with payment aggregators to onboard merchants for net-banking payments because all banks would be accepted by merchant sites. The interoperability process is being spearheaded by Bharat Connect.[14]

See also

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References

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  1. ^ Livemint (8 December 2019). "NEFT money transfer facility to be available 24×7 soon: 5 things to know". Livemint. Retrieved 16 April 2020.
  2. ^ "RTGS is now available 24x7: Here are its advantages". The Economic Times. Retrieved 29 December 2020.
  3. ^ "Mobile Payment Forum to come out with user-friendly features". mint. 29 October 2017. Retrieved 3 December 2024.
  4. ^ UPI: Product Booklet (PDF) (Report). NPCI.
  5. ^ Das, Neelanjit (4 June 2022). "What Makes India's Unified Payments Interface (UPI) A Global Test Case?". Outlook Money. Retrieved 3 December 2024.
  6. ^ VK, Anirudh (3 July 2019). "Multilingual Support Will Help Increase Adoption Of Mobile Payments In India, Says Gaurav Raina Of MPFI". Analytics India Magazine. Retrieved 10 April 2023.
  7. ^ "ProdIMPS Volumes | NPCI - National Payments Corporation of Indiauct Statistics". www.npci.org.in. Retrieved 10 April 2023.
  8. ^ "IMPS Volumes". www.npci.org.in. Retrieved 5 October 2019.
  9. ^ "Address by Governor, Reserve Bank of India at the Digital Payments Awareness Week celebrations, March 4, 2024, RBI, Mumbai". Reserve Bank of India. 4 March 2024. Retrieved 3 December 2024.
  10. ^ Parasnis, Sharveya (5 March 2024). "RBI to Launch Interoperable Payment System For Net Banking". MEDIANAMA. Retrieved 3 December 2024.
  11. ^ "Payments Vision 2025" (PDF). Reserve Bank of India. June 2022. Retrieved 3 December 2024.
  12. ^ Bhakta, Pratik (25 March 2024). "NPCI arm, banks and fintechs in talks for net banking synergies". The Economic Times. ISSN 0013-0389. Retrieved 3 December 2024.
  13. ^ Kumar, Abhijeet (27 March 2024). "NBBL to begin work on net banking interoperability from April: Report". Business Standard. Retrieved 3 December 2024.
  14. ^ Bhakta, Pratik (28 November 2024). "Interoperability in net banking payments soon". The Economic Times. ISSN 0013-0389. Retrieved 3 December 2024.
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