It’s all about convenience, speed, and trust in today’s digital economy. In India, IMPS, or Immediate Payment Service, is a facility that helps individuals transfer or receive money immediately through mobile, ATM, internet, and can even be done via SMS. Offered by the National Payments Corporation of India (NPCI), IMPS has made everything easier to do, from shopping to paying bills and has made them more efficient and seamless.
In this blog post, we will cover what IMPS is in banking, its benefits, transaction limits, charges, and how it works. We’ll also look at how Mindgate Solutions is helping financial institutions enhance instant payment solutions.
What is the meaning of IMPS or Immediate Payment Service?
An Introduction to IMPS
So, what is IMPS? Simply put, IMPS, or Immediate Payment Service, is a real-time IMPS money transfer system in India that lets you send and receive funds instantly between bank accounts.
IMPS was launched by NPCI on November 22, 2010 and is managed under the regulatory supervision of the Reserve Bank of India (RBI) to ensure quick, secure and 24/7 availability of IMPS transactions. It can be used as a payment gateway for businesses or as a personal IMPS Fund transfer, this service works on all mobile apps, internet banking, ATMs, and even via SMS. It is all about convenience, speed, and trust, which is why millions use it.
Types of IMPS Transfers
Immediate Payment Service – IMPS P2P
The IMPS P2P (Person-to-Person) is one of the most popular ways. You receive the recipient’s mobile number and a seven-digit Mobile Money Identifier (MMID) issued by their bank. It’s excellent for quick mobile IMPS payments when complete bank account information is unavailable.
Immediate Payment Service - P2A
For an IMPS transaction via Person-to-Account (P2A), you’ll need the beneficiary’s bank account number and IFSC code. This is ideal for larger transfers or when MMID isn’t an option, ensuring your IMPS money transfer lands safely in their account.
Benefits of IMPS
Instant Transfer
IMPS ensures immediate funds transfer in seconds, which is crucial for emergency transactions. The beneficiary’s account is credited instantly, which is necessary for urgent usage of funds by beneficiary or where beneficiary requires instant confirmation.
Round-the-Clock Availability
IMPS services are available 24*7 even during weekends and National Holidays. This comes in handy in scenarios that need round-the-clock assistance.
Easy & User-Friendly Access
IMPS is simple in nature and can be accessed by a variety of users with the help of mobile banking applications, internet banking, ATMs or even SMS services, making it far more helpful.
Flexible Daily Transaction Limits
While NPCI permits up to ₹5 lakh per day, individual banks may set lower limits based on customer profiles. This limit is permitted by NPCI (National Payments Corporation of India), but banks may individually set lower limits based on the customer profiles.
Nominal Transaction Fees
IMPS offers a fast and reliable fund transfer option with nominal transaction charges. While services like UPI and NEFT are free of charge, IMPS is often preferred where instant, round-the-clock transfers are required, with costs that remain relatively low.
For example, for fund transfer payments, ICICI bank charges 2.5 + GST for a transaction of less than Rs 1,000 and 5 + GST for any amount between Rs 1,001 to Rs 25,000.
Advanced Security & Fraud Protection
Using state-of-the-art security features like M-PINs and OTP validations sets it apart from others while securing the user’s account from wrongful exploitation and guaranteeing safe transactions.
No Need to Share Full Bank Details
Sharing complete bank account details by users is not needed when sending payments through the mobile number and MMID method, making it convenient and secure.
Compliant with Service Tax Regulations
IMPS transactions are subject to applicable service taxes, ensuring compliance with regulatory requirements.
How Does IMPS Work?
- The sender initiates an IMPS transaction via mobile banking, net banking, ATM, or SMS.
- The sender enters the beneficiary details (mobile number & MMID OR account number & IFSC).
- The transaction is authenticated using OTP or M-PIN.
- The bank processes the transfer in real time.
- The amount is credited to the recipient’s account instantly.
- Both sender and receiver receive a confirmation SMS.
IMPS - Limit Per Day
- The maximum IMPS transaction limit varies by bank, but NPCI allows transactions up to Rs 5 lakh per day.
- Some banks set lower daily limits based on customer profiles.
IMPS - Transaction Charges
IMPS charges depend on the bank. Here’s an estimate:
| Transaction Amount | IMPS Charges (Excluding GST) |
| Up to ₹1,000 | ₹2.5 |
| ₹1,001 – ₹25,000 | ₹5 |
| ₹25,001 – ₹1,00,000 | ₹10 |
| ₹1,00,001 – ₹2,00,000 | ₹15 |
Note: Multiple banks offer zero charges for IMPS transactions through mobile or internet banking. Be sure to check with your bank for the most up-to-date fee details.
IMPS - Transfer Time
IMPS fund transfers are processed instantly, usually within a few seconds.
How to Transfer Money Using IMPS?
1. IMPS via Mobile Banking or Net Banking
- Log in to your bank’s mobile banking app or net banking portal.
- Select IMPS money transfer.
- Enter the recipient’s details (phone number & MMID or account number & IFSC) and transfer amount.
- Authenticate the transaction using your M-PIN (mobile banking PIN) or OTP (One-Time Password sent to your registered mobile number).
- The transfer is completed instantly.
Note:
- Here, M-PIN is your personal mobile banking PIN used to authorize transactions. It works like a secure password for your mobile banking account and ensures that only you can initiate transfers. Always keep your M-PIN confidential and never share it with anyone.
- OTP is a one-time password sent to your registered mobile number for added security.
2. IMPS Via ATMs
- Visit an ATM, select IMPS transaction.
- Enter the recipient’s MMID or account details and the transfer amount.
- Confirm and authenticate the transfer.
3. IMPS Via SMS
- Check your bank’s SMS format for IMPS.
- Send a request with recipient details.
| Feature | IMPS (Immediate Payment Service) | RTGS (Real Time Gross Settlement) | NEFT (National Electronic Funds Transfer) |
| Transfer Speed | Instant, 24×7, including holidays | Real-time, but only during bank hours | Settled in batches, typically within a few hours during bank working hours |
| Availability | 24/7, all days | Usually 7:00 AM – 6:00 PM on working days (varies by bank) | 24×7 online availability, settlement in batches |
| Minimum Transfer Amount | ₹1 | ₹2 lakh (some banks may allow lower) | No minimum limit |
| Maximum Transfer Amount | ₹5 lakh per transaction (varies by bank) | No upper limit | ₹10 lakh per transaction (varies by bank) |
| Charges | Low; many banks offer free IMPS for mobile/net banking | Higher than NEFT/IMPS; depends on the amount | No charges. |
| Ideal For | Small, urgent transfers anytime, and especially when the recipient requires funds instantly | Large-value transactions | Regular or non-urgent transfers within India |
Final Thoughts
Understanding what IMPS is opens the door to utilizing this rapidly efficient method of transferring money. IMPS offers beneficial transaction options for both commercial and personal accounts.
For businesses looking to improve their IMPS payment services, Mindgate Solutions provides cutting-edge technology and expertise.
Ready to upgrade your digital payments? Contact Mindgate Solutions today!
FAQs?
1. What is the full form of IMPS in banking?
IMPS stands for Immediate Payment Service.
2. Can an IMPS payment be stopped or reversed?
No, IMPS transactions are instant and cannot be reversed once processed.
3. What is IMPS wallet number?
It is a unique number linked to a digital wallet used for IMPS money transfers.
4. What should I do if an IMPS transaction fails or times out?
Check your bank statement; if debited, contact your bank’s customer support for a raising a dispute.
5. Which banks offer the best IMPS services?
Major banks like SBI, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank provide seamless IMPS services.
6. How do I check the status of my IMPS transaction?
The customers get instant notification on completion of transaction. For future reference, the customers can use net banking, mobile banking, or call customer support with the transaction reference number to check the status.
7. Are there any charges for IMPS transfers?
Yes, banks charge between ₹2.5 to ₹15 + GST based on the transaction amount.
8. What does IMPS P2P stand for?
IMPS P2P (Person-to-Person) refers to direct fund transfers between individuals using mobile numbers or account details.
9. Is a bank account necessary to use IMPS?
Yes, a bank account is required to send or receive money using IMPS.
10. Where can I lodge a complaint regarding an IMPS transaction?
Complaints can be filed with your bank’s customer care, grievance cell, or RBI Ombudsman.
11. What details are required to send money via IMPS?
Either mobile number & MMID or account number & IFSC code of the recipient.
12. Can IMPS be used for international fund transfers?
No, IMPS is only for domestic transactions within India.
13. Is it possible to schedule recurring payments using IMPS?
No, IMPS does not support scheduled or recurring payments like NEFT or Standing Instructions.
14. What happens if I mistakenly transfer money to the wrong account?
Contact your bank immediately; reversal depends on the recipient’s consent and bank policies.
