In Indian banking, instant money transfer through a mobile phone based service is commonly known as what?

Introduction / Context:

This question tests awareness of modern electronic payment systems used in India. With the spread of smartphones, mobile based money transfer services have become extremely common and are regularly asked in banking awareness and general knowledge sections of competitive exams. Identifying the correct term for instant mobile transfers shows that the learner understands basic banking terminology and digital payment infrastructure.

Given Data / Assumptions:

Concept / Approach:

The key idea is to differentiate between different banking terms. IFSC is a code used to identify bank branches, ATM is an automated teller machine used mainly for cash withdrawal and some services, and IMPS stands for Immediate Payment Service, which enables instant interbank electronic fund transfer using mobile, internet, or ATM channels. The description in the question matches the function of IMPS, especially for mobile based instant transfers.

Step-by-Step Solution:

Verification / Alternative check:

As a quick check, remember other systems such as NEFT and RTGS. NEFT and RTGS are primarily internet or branch based systems and historically were not designed exclusively as mobile oriented services. IMPS, on the other hand, was introduced by the National Payments Corporation of India primarily to enable instant 24x7 transfers, starting with mobile banking. This confirmation supports IMPS as the right answer.

Why Other Options Are Wrong:

IFSC: It is a code used to uniquely identify bank branches for NEFT, RTGS, and IMPS, but it is not the name of a transfer service.

ATM: An automated teller machine allows cash withdrawal and limited transactions but is not described as a mobile based money transfer system.

IFS: This abbreviation does not correspond to a standard mainstream retail payment service in Indian banking in this context.

Common Pitfalls:

Candidates sometimes confuse IFSC and IMPS because both appear together during online transfers. However, IFSC is only a branch code, while IMPS is the actual transfer mechanism. Another error is to think of ATM transfers through cards as mobile transfers, but the question clearly highlights mobile as the primary medium, which points toward IMPS. Carefully separating codes, devices, and services avoids these mistakes.

Final Answer:

The correct answer is IMPS.