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The Immediate Payment Service (IMPS) is a pioneering initiative in India’s banking sector, designed to provide instant, 24×7, real-time interbank electronic fund transfers and launched on November 22, 2010, by Smt. Shyamala Gopinath, Deputy Governor of the Reserve Bank of India (RBI), IMPS was developed by the National Payments Corporation of India (NPCI) to address the limitations of traditional fund transfer systems such as NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement), which were only available during banking hours. With IMPS, customers can transfer funds anytime, including weekends and holidays, making it a game-changer for individual users and businesses.
In April 2014, at the beginning of this dataset, IMPS was processing just 3.11 million transactions valued at 2,157.24 crores per month, with 60 member banks participating. Fast forward to March 2024, and the system was handling a staggering 580.64 million transactions worth 6,34,705.71 crores with 867 member banks. This represents an extraordinary growth of over 18,500% in transaction volume and nearly 29,300% in transaction value over a decade. One of the most striking aspects of IMPS’s evolution is the continuous increase in participating banks. From 60 member banks in April 2014, the number grew to 867 by March 2024. This expansion in the network of participating banks has undoubtedly contributed to IMPS’s widespread adoption and usage across diverse demographics and geographies in India.
The growth trajectory of IMPS can be divided into several phases. From 2014 to 2016, the initial phase saw steady but relatively slow growth. By December 2015, the system was processing 20.52 million transactions worth 15,073.11 crores monthly. This period likely represents the early adoption phase, with consumers and businesses gradually becoming aware of and comfortable with the instant payment system. From 2016 to 2019, IMPS experienced accelerated growth. By December 2019, monthly transactions had surged to 256.47 million, valued at 2,10,934.23 crores. This rapid expansion phase coincides with the Indian government’s push for digital payments, including demonetization in late 2016, which likely catalyzed the adoption of digital payment systems like IMPS.
The COVID-19 pandemic had a noticeable but short-lived impact on IMPS usage. April 2020 saw a significant transaction dip to 122.47 million, likely due to the nationwide lockdown and economic uncertainty. However, the recovery was speedy. By July 2020, transaction volumes had not only recovered but surpassed pre-pandemic levels, highlighting the crucial role of digital payments during this period and the resilience of the IMPS system. Post-2020, IMPS has shown consistent and robust growth. Monthly transaction volumes crossed the 400 million mark in February 2022 and have continued to climb, regularly exceeding 500 million since May 2023. This sustained growth indicates that IMPS has become a cornerstone of India’s digital payment infrastructure.
Interestingly, while both transaction volumes and values have grown substantially, the average value per transaction has remained relatively stable over the years, hovering around 10,000-11,000 rupees. This suggests that IMPS is consistently used for a wide range of transactions, from small peer-to-peer transfers to larger business payments. The data also reveals some seasonality in IMPS usage, with slight dips often observed in February and peaks around March and October-December. This pattern could be related to financial year-ends, festival seasons, and other economic cycles in India.
In conclusion, the IMPS statistics from 2014 to 2024 tell a compelling story of digital financial transformation in India. From a niche service to a ubiquitous payment system, IMPS has shown phenomenal growth in adoption, usage, and institutional participation. This growth reflects the increasing digitalization of financial transactions in India and underscores the success of both public and private sector initiatives in promoting digital payments. As IMPS continues to evolve and grow, it is poised to play an increasingly critical role in India’s journey towards a highly efficient, digital-first financial ecosystem.
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