IMPS Full Form - How its Works? Uses, Charges and Limits

IMPS Full Form - How its Works? Uses, Charges and Limits

IMPS, which stands for Immediate Payment Service, is a prompt money transfer service provided by banks in India. The real-time nature of IMPS transactions ensures that the transferred money swiftly reaches the recipient's bank account. This service is particularly useful for medium to large fund transfers, with a typical per-transaction limit of up to Rs 2 lakhs, although this limit may vary among different banks. With over 50 banks in India utilizing IMPS technology for fast digital payments, users can initiate transfers conveniently through Internet banking or mobile banking platforms. Overall, IMPS provides a secure, quick, and convenient method for the instant transfer of funds.

IMPS Highlights

👉 24x7 real-time money transfers 👉 Use internet/mobile banking
👉 Transfers in max 30 mins 👉 No limit on purpose
👉 Secure OTP-based 👉 Daily limit up to ₹5 lakhs

Table of Contents

IMPS Key Benefits

  • Instant inter-bank fund transfers
  • Use for online payments and shopping
  • Available 24x7, even on holidays
  • Easy registration for new users
  • Low charges - usually Rs 2.5 to Rs 25

Steps to Transfer

  • Login to bank's netbanking or mobile app
  • Add beneficiary using MMID or bank details
  • Enter transfer amount and confirm with OTP
  • Get instant transfer confirmation

How IMPS Works

When you make an IMPS transfer, there are 4 main participants:

  • Sender - Person sending the money
  • Receiver - Person receiving the money
  • Banks - Sender's bank and Receiver's bank
  • NFS - National Financial Switch that connects the banks

The sender gives a money transfer request through their bank's website or mobile app. The bank sends this request via the NFS network to the receiver's bank. The receiver's bank then credits the money into the receiver's account. This entire process happens instantly in real-time. So IMPS enables you to transfer money immediately 24X7 between any bank accounts in India.

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.

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

  • 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

How to Send Money Using IMPS

  • 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 favorite.
  • 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.

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.
  • Details such as MMID and MPIN mustn't 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

  • 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.

You May Like:

  • RTGS Full Form
  • UPI Full form
  • MMID Full Form
  • Difference Between NEFT, RTGS & IMPS

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

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.

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