Remittances are an important source of family and national income and are one of the largest sources of external financing. Beneficiaries in India can receive Foreign Inward Remittances (FIR) through various banking and postal channels, and among them Rupee Drawing Arrangement (RDA) & Money Transfer Service Scheme (MTSS) are most common one. FIR transactions through RDA and MTSS involves a domestic leg where funds are transferred from MTO/ Foreign Bank’s account to beneficiary account, which is referred as domestic leg of FIR transaction.
Immediate Payment Service (IMPS) is an instant inter-bank electronic fund transfer service that facilitates money transfer from one bank account to another instantly, 24x7, throughout the year. IMPS can be used to process the domestic leg of FIR, the sender can send money from their foreign bank account to the beneficiary's Indian bank account through an authorized remittance service provider by providing beneficiary’s account number and IFSC code.