Make Payments through IMPS
It works 24x7 and costs very little
Savers suddenly have a wide range of choice for mobile payments; instead of using physical instruments, like cash, cards or cheques, you use your mobile phone to make the payments. In mobile banking or Internet banking, money can be transferred only when the account number of the payee is known and the account of the payee has to be registered with the payer to initiate a fund transfer. In mobile payments, the account number is masked. The sender is not required to know the bank account number of a receiver for transferring money. This opens up a range of possibilities—from buying tickets to paying auto fare—both of which would not have been feasible had the account number been mandatory for a simple transaction. 
One of the least known, but effective, mobile payment systems in India is immediate payment service, or IMPS, launched by National Payment Corporation of India (NPCI) a non-profit company launched by the government. IMPS allows 24x7 instant fund transfer anywhere in India to any bank account-holder whether she uses a low-cost device or a high-end smartphone. For using IMPS, the user only needs to know the mobile number of the payee (registered with her bank), her seven-digit MMID, the amount and sender’s four-digit PIN. MMID (mobile money identifier) is issued to any bank customer when she registers for IMPS.
At present, there are 68 banks which offer IMPS facility to customers for money transfer. In addition, prepaid payment service-providers, like Oxigen, GI Tech, Airtel Money, ITZ Cash, UAE Exchange, mRupee and m-Pesa, can allow those without a bank account to send and receive money though mobile phone. For SMS-based IMPS transactions, there is a limit of Rs5,000 per day, per account; the limit for mobile-based apps is Rs50,000. Here is how one can use IMPS.
Registration for Remitter (sender): 
Register for mobile banking service at your bank branch.
Get mobile money identifier (MMID) and MPIN from the bank.
Download software (app) for mobile banking (ensure the compatibility of mobile with the application). You can also use the SMS facility.
Registration for Beneficiary (receiver):
Link your mobile number to the account in bank.
Get MMID from the bank.
For Remitter (to send money):
Login to the application and select the IMPS menu or use the SMS facility in your mobile
Enter beneficiary’s mobile number, beneficiary’s MMID, the amount and your IMPS PIN, which consists one-time PIN and last three digits of your MPIN, to send. 
Here is the standard format, if you are using SMS for IMPS…
For example, send an SMS:  
IMPS 9876543210 1234567 5000 1234789
(Here, 9876543210 is the beneficiary’s mobile number, 1234567 is the MMID of the beneficiary, 5,000 is the amount, 1234 is your one-time PIN and 789 are the last three digits of your MMID.)
Remember, the OTPIN you would receive through an SMS will be valid for one hour only.
Await confirmation SMS for the debit from your account and credit in the beneficiary’s account.
Note the transaction reference number for any future query.
To Receive Money:
Share your mobile number and MMID.
Ask the remitter to send money using your mobile number and MMID.
• Check the confirmation SMS for credit to your account from the remitter.
• Note the transaction reference number for any future query. 
IMPS is a boon for the large number of migrants in every city across India. Without visiting any bank branch, they can remit money to families in their hometown. Since, IMPS can be used 24x7, they do not have to skip their daily wage job. 
Vaibhav Shrivastav
8 years ago
Very good and informative..
ramchandran vishwanathan
8 years ago
what are the charges
Replied to ramchandran vishwanathan comment 8 years ago
Only 5 Banks in India charge for IMPS:
1)ICICI (upto 1lakh-Rs5+SC)(Between 1lakh to 2lakh-Rs 15+SC)

2)SBI (Rs 5)

3)HDFC(upto 1lakh-Rs5+SC)(Between 1lakh to 2lakh-Rs 15+SC)

4)Axis Bank(upto 1lakh-Rs5+SC)(Between 1lakh to 2lakh-Rs 15+SC)

5)Punjab National Bank(Rs 5+SC)

Shashank S
Replied to ramchandran vishwanathan comment 8 years ago
For IMPS most banks charge Rs 5 per transaction (5.62 if u include Service tax)
Kedar Jayant Deshpande
8 years ago
Very informative. Thanks !
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