What Is MMID in Banking? Meaning, Features, Uses & Benefits

Earlier, whenever you tried to send money to someone, you were required to ask for their bank details and IFSC codes, etc. If any account number mismatches, the money can be transferred to another bank account. But with the evolution of the digital economy, transferring money is very easy because of the MMID or Mobile Money Identifier.

In today’s blog post, we will give you an overview of MMID, along with the benefits of using it.

What is MMID?

MMID means Mobile Money Identifier, which is a seven-digit unique code issued by your bank to identify your bank account details. It acts as a link between your mobile and your bank account. The MMID code is used to transfer funds instantly. Generally, to transfer funds, people use a long account number and the IFSC Code;  users can simply rely on MMID in bank systems along with their mobile number to transfer money instantly.

Features of MMID

The key features of MMID are as follows:

1. Unique Code: MMID is a unique 7-digit code issued by your bank to identify your account for IMPS transactions.
2. One MMID: In case you have multiple bank accounts, you will receive a unique MMID for each account.
3. Mobile Base Transfers: It allows easy fund transfer using only a mobile number and MMID.
4. Availability: MMID through IMPS works on a real-time basis; it is always available even on the bank’s holidays.
5. All Banks: MMID works in all the Indian banks which offer IMPS services.

How Does MMID Work

The steps of how MMID works are as follows:

1. Mobile Number Linking: The first step is to link the mobile number with the bank account.
2. Creation of MMID Number: Once the bank account is linked with the mobile number, you need to create an MMID number.
3. Sending Money: To send money, one is required to open their mobile banking app and enter the recipient’s MMID and the amount to transfer.
4. Approving the Payment: The recipient’s mobile banking app receives a notification for approval. 
5. Transferring Payment: If the payment details are approved by the recipient, the funds are instantly transferred.
6. Confirmation: Both the receiver and the sender of the money receive a confirmation message or notification for a successful transfer.

Advantages of MMID

The key advantages of using MMID are as follows:

1. Convenience: One can easily transfer money using a mobile number and MMID, without sharing bank account details.
2. Instant Transfer: MMID allows real-time transfer of money between the sender and receiver. The amount sent by the sender is transferred to the receiver’s account within minutes.
3. Secure Mode: Transferring funds using MMID is safe and secure. It only identifies your bank account, and you are not required to share any other details, such as account number and IFSC code.
4. No internet required: Using MMID does not require any internet connection; it can work on all mobile phones with SMS or USSD.
5. Economical: Transactions based on MMID involve a much lower cost than other modes of transferring payments, making it more affordable for users.

Disadvantages of MMID

The key disadvantages of MMID are as follows:

1. Only for Mobile Banking: Customers who use mobile banking services can only use the MMID to transfer funds.
2. International Unacceptance: The MMID is not widely accepted in other countries; it is only used in regions where mobile banking services are available.
3. Fraud Risk: Various frauds have been reported related to the misuse of MMID services; therefore, one must be careful while using MMID services for transferring funds.
4. Approval of Recipient: Transferring money through MMID requires approval of the recipient; therefore, if the recipient is not available or does not approve the approval request, money cannot be transferred. 
5. Low Awareness: The awareness regarding the MMID mode of transferring payment is very limited. 

How to Generate MMID

There are various methods through which one can generate MMID. A few of such methods are mentioned below:

Internet Banking

1. To generate an MMID using NetBanking, you are required to visit the official website of your bank.
2. Then you need to log in to your NetBanking account using your password and user ID.
3. After which, you are required to navigate to the fund transfer section and choose IMPS.
4. There you will find an option to generate MMID, click on it then your MMID will be sent to your registered mobile number via SMS.

Mobile Banking

1. First, you need to log in to your mobile application.
2. Navigate to the IMPS section.
3. Click on the generate or view MMID.

Phone Banking

1. This step requires calling your bank’s customer care.
2. Confirm the bank details with the representative.
3. Ask them to generate the MMID.
4. Once the request is successful, the MMID will be sent to your registered mobile number.

Conclusion

On a concluding note, the Mobile Money Identifier (MMID) is one of the simplest ways to transfer or receive money from another individual. It just requires your mobile number and an MMID. It acts as a key element of the digital economy or financial inclusion, as money can be transferred using feature phones. The usage of MMID is secured through different layers of authentication. However, it is advisable to be cautious while sending or receiving money using MMID.

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