IMPS switch
Also known as: Immediate Payment Service switch
Definition
An IMPS switch is the bank-side software that connects a bank to NPCI's Immediate Payment Service (IMPS), an instant, 24x7 interbank electronic fund transfer service, and processes transfers addressed by mobile number and MMID, account number and IFSC, or Aadhaar number.
More about IMPS switch
IMPS can process person-to-person, person-to-account and person-to-merchant remittances through mobile, internet and ATM channels [1]. NPCI provides IMPS through its National Financial Switch, and participants need a valid banking or prepaid payment instrument licence from RBI [2].
An IMPS switch handles the bank's side of each transfer: sending and receiving IMPS messages, posting inward credits, processing reversals and reconciling by transaction reference.
How this relates to LCode Technologies
LCode Technologies' UPI & IMPS Switch supports all IMPS message types (P2A, P2P, P2U, P2M) over a socket-based channel with automatic log-on to the NPCI gateway. LCode launched its IMPS Switch in 2014.
Frequently asked questions
What do the IMPS message types P2A, P2P and P2M mean?
P2A is person to account, where the beneficiary is identified by account number and IFSC; P2P is person to person, using the beneficiary's mobile number and MMID; and P2M is person to merchant. IMPS transfers can also be addressed using the beneficiary's Aadhaar number.
Who operates IMPS?
NPCI provides IMPS through its National Financial Switch. Banks connect to it through their own IMPS switch.
Related reading
Sources
- Updates for Retail Banking: IMPS and *99# — Indian Institute of Banking & Finance (IIBF)
- Digital Banking Updates: NPCI products — Indian Institute of Banking & Finance (IIBF)