IMPS Transactions In India On Rise: $3.4 Billion Transferred In May 2016

Must Read

Microsoft Warns Millions of Windows 10 Users, And It’s Scary!

Microsoft’s Windows 10 update worries seem to haven’t stopped even after they started to secretly offer Windows...

Microsoft Study Reveals Indians Have Become Less Digitally Civilised Than The Previous Years!

With the coming age of digital boom in India, more and more people have been gaining access...

SEO Secret: Meta Description Drives More Clicks Than Title, Reveals Study!

If you are a digital marketer in 2020 or someone who takes a keen interest in consumer...
Abhishekhttp://dazeinfo.com
A Mechanical Engineer, having fondness of numbers and analysis. I love to read between lines, discuss with the industry leaders and carefully craft my thoughts backed with data. I'am a hungry explorer whose plight never ends. Comfort zone never exists for me.

National Payments Corporation of India (NPCI), the body that monitors and governs IMPS (Immediate Payment Services) transactions in India, released data that explains the increasing adoption of IMPS service among the people. The number of IMPS transactions between April and May 2016 were up by 5.34%, totalling 31.09 million transactions. Subsequently, the total number of MMID (Mobile Money ID’s), required to send money to a person instantly using beneficiary’s mobile number, also went up by 6.92% during the same period, to 1343 lacs.

The rise in internet penetration and mobile phone users in India is a clear indication towards the booming IMPS service. There was a steep rise of 112.43% in the total number of IMPS transactions that took place between May 2015 and 2016. Mobile Money ID’s (MMID) also recorded a 49.49% rise between May 2015 and May 2016. 164 banks opted to offer IMPS service by the end of May 2016, a 78.26% increase from May 2015 when only 92 banks were offering the service.

But not everything looks promising for IMPS; one must have a bank account in order to transact through IMPS. The World Bank reported that in India only 400 million Indians had a bank account in 2013, between 2011 and 2014 only 175 million new accounts were opened. In contrast, In the last 18 months, nearly 220 million new accounts are opened under the under Pradhan Matri’s Jan Dhan Yojana, reports Economic Times citing official data. Still more than half of India population is yet to establish any relationship with banks. Online banking, therefore, is still a futuristic approach for the majority of Indians who are yet to have their first bank account and a sizable chunk of the population is still below poverty line.

Advertisements

Mobile banking share in India is very low at 0.1% of the total banking share and is slated to rise to 10% in 7 years, recording a 200X jump. NEFT and PPI (wallets etc.) payments in the country account for less than 10% of the total banking transactions and is estimated to swell to 30% in the next 7 years.

Gr711

The adoption rate of IMPS service is increasing at a rapid rate citing those numbers and why not? IMPS allows immediate money transfer between two accounts. The distinctive traits about this feature are that IMPS transfers can be made around the clock throughout the year even on the public holidays, unlike the time-consuming and limited NEFT and another kind of transactions. SBI (State Bank of India) being an exception only allows the transactions between 8 AM and 8 PM through IMPS.

IMPSArch

The transactions are safe and secured and can be conducted in 3 different ways: Firstly, Peer to Peer (P2P) by using the mobile number and MMID, Secondly, Peer to Peer (P2P) using IFSC and account number and lastly, IMPS merchant payment – Person to Merchant.

The rising Internet And Smartphone Penetration Helping Banking Industry

Internet penetration in India is growing at a serious pace. In 2015, the internet user-base in India recorded an impressive 40% growth over the past year. The total number of internet users in India is expected to rise to 462 million by the end of June 2016. Still in a country of 1.25 billion people, only 39% of the total population has access to the Internet.

The exploded adoption of the smartphone in India is also helping banks and financial industry to ride on the back of technology adoption by the people of India. Despite mere 17% smartphone penetration and declining growth in smartphone shipments globally, the smartphone shipments in India is estimated to grow by 29% in 2016. Encouraged by the growth figures, a majority of banks in India has made their indigenous apps available on smartphones for safe, secure and faster transfer from anywhere in the country.

Advertisements

The rising penetration of the Internet and Smartphone has surely boomed the adoption of mobile banking as it incorporates faster and easier way of money transfer, especially through the IMPS. Due to the changing business equation, banking users need faster processing of money transfer, consequently more number of account holders are turning towards IMPS, slowly ditching old school NEFT.

IMPS System Needs to Mature

But, not everything goes in thefavourr of IMPS in India. The system is yet in its early stage and needs to mature fast. Unlike RTGS/NEFT the IMPS transfers are not govern by RBI and banks do not have a universal policy to follow. While some of the banks, such as SBI, do not offer the service round the clock and on holidays, there are few banks which have a high number of failed IMPS transactions. But the most disappointing, not every bank offers the IMPS service in India.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

LinkedIn Finally Rolls Out The Most Requested Feature By Users

Microsoft owned LinkedIn has recently been reported to have revamped its profile section with an amazing feature...

Google is Giving Microsoft a Taste of its Own Medicine

The latest version of the Microsoft Edge browser was launched about a month ago for Windows 10, Windows 8, Windows 8.1, and...

PhonePe Is Betting Big On The New Facility To Woo Smartphone Users And Merchants

The popular digital payments app PhonePe has recently been reported to launch a feature which is bound to solve their user’s cash...

Microsoft, Xbox, and One Small Mistake: Loss of $1 Billion

Microsoft Corporation (NASDAQ:MSFT) needs no introduction as it is one of the oldest players in tech space and dominated the industry undisputedly...

Facebook Without Mark Zuckerberg And Sheryl Sandberg?

Imagine Facebook without Mark Zuckerberg and Sheryl Sandberg, the current CEO and COO of the world's largest online social media network having...

Essential Email Marketing Features for eStore Owners That Generate Guaranteed ROI

Email marketing is essential and is a significant part of current digital strategies. Email marketing reigns supreme when you need to enhance...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This