Urban Money

What is IMPS? – Full Form, Uses, Charges and Limits

What is IMPS? – Full Form, Uses, Charges and Limits

IMPS or Immediate Payment Service is an instant payment service system offered by banks in India that uses an electronic fund transfer feature for faster processing. The feature was started in 2010, and IMPS has now been widely used in the country for medium to large fund transfers. There is a per-day limit set that varies from bank to bank. IMPS or Immediate Payment Service is managed by NPCI or the National Payment Corporation of India and functions on the concept of National Financial Switch. About 53 financial institutions are using the IMPS service for electronic fund transfers for their customers. 

IMPS Full Form

IMPS full form is Immediate Payment Services. There are four participants involved in an IMPS transaction. These include sender, receiver, financial institution, and National Financial Switch. NFS of National Financial Switch is the network wherein the transactions are facilitated. 

Limit of IMPS?

It can be beneficial for users of IMPS to know about the IMPS limits set by various banks. This can be handy for customers not to exceed their expectations. The IMPS limit is usually set on a daily transaction basis. The Federal Reserve Bank of India established the IMPS limit to make the banks' significant funds more processable. Although the IMPS limit varies from bank to bank, it ranges from about INR 2 Lakhs to INR 5 Lakhs. For example, Canara Bank has a daily IMPS limit of INR 5 Lakhs. 

IMPS Charges?

Many banks charge a small nominal fee to their customers for the use of Immediate Payment Services. However, certain banks do not charge anything. These banks include SBI, IDFC First Bank, IDBI Bank, Kotak Mahindra Bank, YES Bank, South Indian Bank, and Federal Bank. Some minimum IMPS charges levied by banks are as given below: 

HDFC Bank ₹3.50 + Applicable GST
ICICI Bank ₹5 + Applicable GST
Axis Bank ₹2.5 + Taxes
RBL Bank ₹5 + GST
Canara Bank NIL
IndusInd Bank ₹2.5 + GST
Union Bank of India ₹5 + Taxes
Bank of Baroda ₹1 + Applicable GST
Central Bank of India ₹5 + GST
Punjab and National Bank ₹5 + GST
Indian Overseas Bank ₹5 + Taxes
Bandhan Bank ₹5 + Applicable Taxes

IMPS – Uses?

With a convenient service like IMPS, customers can expect to use them for the following reasons. 

  • To facilitate fund transfers in minimal time.
  • To receive payments from other sources.
  • To make significant investments in compliance with bank limits. 
  • To make payments to traders, brokers, wholesalers, etc.
  • IMPS can be used as a fast and hassle-free mobile banking feature 
  • One can also use IMPS to check Aadhaar seeding status. 

Features of IMPS?

Immediate Payment Services (IMPS) comes with various features that a customer can exploit to get the best use out of it. It will be beneficial to know the benefits as users can take advantage of the same with maximum efficiency. Some of the features of IMPS are as follows. 

  • IMPS facilitates instant real-time electronic fund transfers from one bank account to another.
  • One can use IMPS via banking apps, internet banking, ATMs, or even messaging services. 
  • IMPS can be used anytime and anywhere. There is no time restriction for using IMPS. 
  • Payments are confirmed with messaging services from both sender and receiver banks. 
  • IMPS payments can be made from an individual to a company or vice versa. 
  • Most banks charge a minimal fee for processing IMPS payments, thus making it cost-efficient. 

Details Needed to Complete IMPS Transactions 

To make payments using the IMPS service, the sender must use a few details to complete their transaction. These details are minimal, thus making the whole process hassle-free for the customer. The main information needed to make an IMPS payment is as follows. 

  • Name of the beneficiary or the receiver. This could be a person or a company 
  • Contact Number 
  • MMID or Mobile Money Identifier 
  • Account number of the beneficiary or the receiver. This could be a person or a company
  • IFSC Code of the bank branch. 

How to Register for IMPS?

To get started with IMPS, one has to register for the service. There are a few ways in which a user can efficiently register themselves. For the sender, it is necessary to activate the net banking services from their banks. They can do the same with the bank’s mobile application or by visiting the branch. For the sender, the following ways can assist in registration for IMPS services. 

  • Download the mobile banking app on your device.
  • Register by linking the bank account
  • Generate an MMID (Mobile Money Identifier) 
  • Generate an MPIN or Mobile Banking Personal Identification Number
  • You can verify your bank details via mobile OTP or Debit Card OTP 

Moreover, the receiver of the funds can also get registered by incorporating the following pre-requisites. Firstly, they can link their contact number with their banking account. This can be done online via banking application or by visiting their bank branch. Consequently, they can also generate their own MMID and MPIN from the bank.  

How to Send Money Using IMPS?

Using IMPS service is an easy and hassle-free process. One can effortlessly send their funds to their beneficiaries by following the procedure below. 

  • Log in to your net banking account via an online banking website or a mobile application. 
  • Enter the beneficiary’s bank account details such as name, account number, IFSC code, etc.
  • From the interface, navigate the transfer sections and select the IMPS option. 
  • Select the beneficiary that you have already saved as a favourite. 
  • Enter the amount. Limits are applicable and vary from bank to bank. For example, Canara Bank has a limit of INR 5,00,000 per day. 
  • Enter your MMID / MPIN as applicable for verification of sender details.
  • The fund transfer receipt will be shown, which is shareable. Use this as proof of payment. 

Alternatively, you can use an ATM to make an IMPS fund transfer. The simple procedure is below: 

  • Visit an ATM and insert your debit card. 
  • Use the interface to select the ‘fund transfer’ option, after which you must select the ‘IMPS transfer’ option.  
  • Enter details such as beneficiary account number, IFSC code, amount of transfer, and MMID / MPIN for authentication. 
  • The transaction receipt will be immediately sent to your registered mobile number. 

What are the benefits of IMPS?

There are various benefits of using an IMPS service to make fund transfers. These include the listing as given below: 

  • Fast transfer of funds across pan-India
  • 24 / 7 service availability
  • IMPS service is considered safe and secure
  • The service is easily accessible via apps, online banking, SMS, and ATMs. 
  • Processing fees of transfers are minimal 

Things You Should Take Care of When Using IMPS

Customers can consider a few pointers when using the IMPS services about efficient usage, security, and customer feedback. IMPS is an electronic fund transfer service that offers an instant and hassle-free user experience. With that said, here are some things you should take care of when using the IMPS service. 

  • Make sure you are registered with the bank's net banking service. 
  • When making transfers, the beneficiary's bank details should be entered correctly. 
  • It is essential that details such as MMID and MPIN should not be disclosed to anyone. 
  • Make sure to use OTP discreetly
  • Login and password are not to be shared with anyone.
  • Make sure not to share banking-related messages with anyone unknown.

Requirements for Making IMPS Transactions Online

To efficiently make an IMPS fund transfer, one should be equipped with the following prerequisites. 

  • Name of benefactor
  • Account number of the receiver
  • Branch Name 
  • IFSC Code
  • MMID and MPIN for authentication for the transfer. 

How to Receive Money Through IMPS to Your Bank account?

To receive money through IMPS to your bank account, let the remitter know the correct details of your bank account. Provide them with details such as the registered name on the account, account number, branch name, and IFSC code. It is also necessary to have a mobile number linked to your bank account for confirmation text of the transfer. Creating an MMID or Money Mobile Identifier is necessary to receive funds accurately. 

List of Banks Offering IMPS Money Transfer in India?

There are currently more than 50 banks that support the feature of IMPS in India. The list of banks is given below.

Axis Bank Indusind Bank City Union Bank
Bank of Baroda Jammu And Kashmir Bank Bandhan Bank limited
Bank of India Karnataka Bank IDFC bank
Bank of Maharashtra Karur Vysya Bank Barclays Bank
BNP Paribas Kotak Mahindra Bank Airtel Payments Bank Ltd.
Canara Bank Punjab National Bank Fino Payments Bank
Catholic Syrian Bank South Indian Bank Paytm Payments Bank
Central Bank of India Standard Chartered Bank India Post Payments bank Limited
Citi Bank State Bank of India Emirates NBD Bank (P J S C)
Development Bank of Singapore Tamilnaad Mercantile Bank JIO Payments Bank
DCB Bank Ltd. UCO Bank NSDL PAYMENTS BANK LTD
Dhanalakshmi Bank Union Bank Of India Shinhan Bank
Federal Bank Yes Bank Ltd Bank of America
HDFC Bank Ratnakar Bank SBM BANK (INDIA) LIMITED
HSBC Bank Punjab and Sind Bank Bank of Bahrain and Kuwait B.S.C
ICICI Bank Indian Bank Credit Agricole Corporate & Investment Bank
IDBI Bank
Indian Overseas Bank

FAQ's About Immediate Payment Service

What is MMID?

MMID is Money Mobile Identifier is a 7-digit numeric sequence that can be generated on request from your bank. This sequence facilitates accurate identification and fund transfer through electronic fund transfer services such as IMPS.

How can I generate MMID?

MMID can be generated by various means, including SMS service, net banking application, mobile application, and by visiting the bank branch. The easiest and hassle-free way is using the bank apps for generating MMID.

Is IMPS transfer safe?

IMPS transfers are considered safe and secure. Users are advised not to disclose their MPINs and OTPs for further security reasons.

Are UPI and IMPS the same?

Unique Payment Interface and IMPS are not the same. UPI are quick payment options that effectuate direct bank transfers without the need to enter bank details and codes. In contrast, IMPS are electronic fund transfers incorporating bank details and MMID.

Is IMPS transfer free?

IMPS transfers are facilitated free of cost by various banks. However, other banks charge minimal processing fees for transfers ranging from INR 15 to INR 20.

Which is cheaper, IMPS or NEFT?

Generally, NEFTs have lower minimum charges than IMPS, but the upper limit can go higher than IMPS. For example, more inferior transfer charges for NEFT are INR 1, whereas IMPS will cost INR 5. Furthermore, NEFT charges can go as much as INR 25, where IMPS only go as much as INR 15.