IMPS - Full Form, Features, Limits and Charges

The Immediate Payment Service (IMPS), managed by the National Payments Corporation of India (NPCI), enables real-time fund transfers. You can transfer up to ₹5 Lakhs at any time, including holidays.

 

IMPS offers a secure and instant way to transfer funds through the internet banking portals of major banks. Some banks also support IMPS via SMS, allowing transactions without internet access.

 

To confirm if your bank offers IMPS via SMS, contact your bank or check their website. IMPS is always available, processes transactions quickly, and ensures smooth fund transfers, making it a reliable option for both personal and business needs.

The full form of IMPS is Immediate Payment Service. The National Payments Corporation of India (NPCI) introduced IMPS as a real-time payment system for instant money transfers. Available 24x7, including weekends and holidays, it provides a secure and efficient way to transfer funds quickly.

 

It supports transactions up to ₹5 Lakhs and is accessible through internet banking portals of most major banks. Additionally, some banks offer IMPS via SMS, adding to its convenience. This service is popular for personal and business use. It allows quick and easy fund transfers anytime.

It offers cutting-edge features designed for seamless and secure real-time fund transfers.

Instant Fund Transfer

As its name suggests, it enables instant fund transfers. Transactions are processed individually rather than in batches, ensuring the beneficiary receives the funds immediately. Transfers can be initiated through net banking, mobile banking, ATMs, or SMS.

Available 24x7

It is available anytime, even on Sundays and bank holidays. You can transfer funds no matter the day or time.

Versatile Transfer Options

It has two ways to transfer money. You can use the beneficiary's bank account details and IFSC. Alternatively, you can use their 7-digit Mobile Money Identifier (MMID).

Instant Notifications

Upon completing a transfer, both the sender and the beneficiary receive immediate SMS notifications, confirming the transaction status.

Safe and Secure

Banks encrypt transactions and employ two-step verification with OTPs to ensure security.

Multiple Applications

It is not just for fund transfers. You can also use it to pay utility bills, insurance premiums, and for online purchases.

These benefits make it a reliable and cost-effective option for instant financial transactions. Here are some of the benefits:

Convenience

The 24x7 availability ensures that fund transfers can be made anytime, even during non-banking hours or holidays.

Speed

The system credits funds instantly, making it ideal for urgent transactions.

Cost-effective

The charges are minimal compared to other electronic fund transfer methods. Some banks even offer it free of cost.

Simplified Process

To start a transfer, you need only a few details. You will need the account holder’s name, bank account number, and IFSC. This makes the process quick and easy.

Transparency

Real-time notifications keep you updated about the transaction status, ensuring clarity and trust.

Enhanced Security

With encryption and OTP-based verification, IMPS ensures that transactions are safe and free from fraud risks.

IMPS (Immediate Payment Service) is a fast, secure, and convenient method for transferring funds instantly. To complete this transaction, you will need the following details:

For IMPS via Mobile Banking

• MMID (Mobile Money Identifier) of both sender and receiver

• Mobile banking registration is mandatory to generate MMID

For IMPS via Net Banking

• Beneficiary’s full name as per bank records

• Bank account number

• IFSC code of the beneficiary’s bank branch

• Mobile number of the receiver (optional)

For IMPS via MMID:

• Beneficiary’s mobile number

• Beneficiary’s 7-digit Mobile Money Identifier (MMID)

After authenticating the payment, your bank displays a 12-digit IMPS reference number on the screen. You can find the number on your bank account statement, too, against the transaction ID.

 

Apart from IMPS, you can also use RTGS or NEFT to transfer money from one account to another. Know about the difference between IMPS vs NEFT vs RTGS and select the mode that suits you best.

Before you choose IMPS as your preferred mode of online money transfer, there are a few things you need to keep in mind. They are as follows:

Access to Mobile Banking

For the transfer of funds quickly and efficiently using your phone, IMPS requires you to have a mobile banking account. You need to download your bank's app on your phone. Then, link your account to send and receive money.

Errors Cannot be Reversed

Once you make a transaction using IMPS, you cannot reverse it. As a result, it is critical that you check and recheck the details entered before submitting the payment request.

 

If you send money to the wrong account by mistake, you might not get it back. If the person who received it does not return the money, you will lose your funds.

Steady Internet Connection

You must have a stable Internet connection to avail of IMPS fund transfers via mobile banking. Slow or interrupted connectivity can cause a lag, and you might mistakenly submit fund transfer requests more than once.

Now that you know what IMPS is, its features, benefits, and full form, let’s go through the steps to transfer funds using this service:

1. Log into your bank’s internet banking portal or mobile banking app using your credentials

2. Navigate to the fund transfer section and select the option to add a beneficiary

3. Enter the beneficiary’s details, including the account holder’s name, bank account number, and the IFSC code of the beneficiary’s bank branch

4. Authenticate the request by entering the OTP sent to your registered mobile number

5. Once the beneficiary is successfully added, select the IMPS fund transfer option

6. Choose the beneficiary to whom you wish to transfer funds

7. Enter the amount you want to transfer and proceed with the fund transfer request

8. Authenticate the transaction by entering the OTP sent to your registered mobile number

 

Once completed, the beneficiary’s account will be credited instantly. The process outlined above is generic and may vary slightly depending on the bank with which you have an account.

Sending money using the IMPS facility on your phone is quick and convenient. Follow these steps to transfer funds seamlessly:

1. Open your bank’s mobile banking app and log in using your credentials

2. Navigate to the Fund Transfer or IMPS section in the app

3. Select the option to add a new beneficiary, if not already added

4. Enter the beneficiary’s details, such as their name, bank account number, and IFSC code

5. Alternatively, you can use the beneficiary’s mobile number and MMID (Mobile Money Identifier) if supported

6. Authenticate the addition of the beneficiary by entering the OTP sent to your registered mobile number

7. Once the beneficiary is added, choose the IMPS fund transfer option

8. Select the beneficiary from the list, enter the amount to be transferred, and proceed with the request

9. Authenticate the transaction using an OTP or other verification methods provided by your bank

 

The transaction will be processed immediately, and the beneficiary’s account will be credited instantly. Always ensure you double-check the details entered to avoid errors. The steps may vary slightly depending on your bank’s mobile app interface, so refer to specific instructions if needed.

Receiving money through IMPS on your phone is a quick and reliable process that ensures instant credit to your account. To make the process seamless, follow these steps:

1. Share your bank account details and IFSC code with the sender

2. If supported by your bank, share your mobile number and MMID (Mobile Money Identifier) instead

3. The sender will initiate the transfer using their bank’s mobile or internet banking platform

4. Once the transaction is completed, you will receive an instant SMS notification confirming the credit in your account

5. Ensure your mobile banking registration is active to receive notifications seamlessly

 

This process is secure, efficient, and ideal for receiving funds instantly, even on holidays.

Now that you are aware of the meaning of IMPS, its features, and its benefits, let’s take a quick look at what you can use IMPS for.

• IMPS allows instant fund transfers to other bank accounts in real time

• It can be used to receive payments quickly from others

• The service is ideal for making secure payments to merchants for goods or services

• IMPS helps check the linking status of your Aadhaar with your bank account

• It facilitates seamless transactions through mobile banking for added convenience

Before using the IMPS service, you must know that the IMPS transfer facility may not work properly every time. If your fund transfers through IMPS, check your transaction history to know if it has been deducted from your account.

 

If funds did not get debited, you will have to wait for some time before you can try transferring funds again through the IMPS service.