A Comprehensive Guide to IMPS

With the rise in digital transactions backed by the fintech innovations in India, instant payment transfer has become a part of our lives. We start looking for alternatives to send money if there is a slight delay or payment system downtime tends to put our lives at a halt, making us look for alternatives to send money. 

But before the payment apps came in handy, the banking system had started facilitating electronic payment transfers. The joint effort of the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to streamline payment transfer reached the fruition stage with the launch of Immediate Payment Service (IMPS) in 2010.

In this blog, we will take you through various sides of IMPS meaning and its usage.

What is IMPS transfer?

IMPS refers to the process of real-time electronic transfer of funds to the beneficiary/payee account. It is managed by NPCI and falls under the purview of the apex bank in the country, RBI. IMPS transfers can be done round the clock every day, including Sundays and bank holidays. 

Other fund transfer methods like RTGS and NEFT which were only available for use during business hours and could not be used during bank holidays. Here, the main advantage of using an IMPS transfer is that it is available 24×7, making the users benefit from this facility as per their convenience.

Given below are some other important things about IMPS:

• Through this payment method, a user can initiate interbank payment transfer through multiple channels, such as Internet banking, mobile banking, ATMs, or SMS. 
• IMPS was initiated as a pilot project covering four banks in 2010 and has now grown to 150+ banks in the country.
• It is a highly useful banking facility to make fund transfers during emergencies.
• A remitter/user needs to register the beneficiary first to whom he wants to send money via IMPS. It requires various details related to the beneficiary, including a bank account number. IFSC code, bank name, and bank branch.

Features of IMPS

The IMPS facility has made payment settlements faster for users in our country. Given below are some of its primary features:

• It helps conduct interbank money transfers safely.
• It also serves as the backbone of the Unified Payment Interface (UPI) platform.
• IMPS transfers work both on mobile and net banking platforms.
• You can send money to a beneficiary via the IMPS platform using his/her mobile number or Mobile Money Identifier (MMID).
• While done through mobile, IMPS transfers do not necessarily require beneficiary’s bank account details. 
• Once the money transfer is successful, both the payee and the payer receive a notification regarding the same.

How to transfer money via IMPS?

Using the IMPS facility, you can transfer funds via net banking and mobile banking platforms. Given below are the steps involved in each of the cases:

Steps to make IMPS transfer via net banking

1. Log in to your bank’s net banking portal. 
2. Add a beneficiary by entering his/her account number, account type, name, contact details, and IFSC code.
3. Once your bank confirms the addition of a beneficiary, use the fund transfer option and select the beneficiary to whom you want to send money through your bank account.
4. Verify the payment and it’s done! The funds will be transferred to the beneficiary’s account instantly.

Steps to make IMPS transfer via mobile banking

1. Log into your bank’s mobile application.
2. Add a beneficiary if not done already.
3. Use the money transfer/send money option and then enter the beneficiary’s mobile number.
4. Enter the amount you want to transfer along with the MMID of the chosen beneficiary.
5. Authenticate fund transfer using mPIN and the fund will be transferred instantly.

Note: You can use the transaction number given in the IMPS transfer confirmation text or email for queries or complaints if any.

Recommended Read: mPIN: Full Form, Meaning, Use Cases, and More

IMPS transfer limit through different modes

The following table covers the maximum IMPS limit capping for different payment modes:

Besides the IMPS transfer limits given above, you should also know that:

• Different banks may have different limits set for both modes of payment. 
• The above-mentioned limits are effective at present (July 2022) and may change as per the bank guidelines later.

What are IMPS Charges?

IMPS charges are largely subject to the bank you choose for fund transfer and the amount being transferred. In general, the IMPS charges range from Rs. 2.5 to Rs. 25 per transaction, and may vary from one bank to another. Furthermore, many banks have waived off the charges related to IMPS transfers irrespective of the fund amount (provided it is within the daily IMPS limit).

Things you should keep in mind while using IMPS

• Never share details like debit card/credit card number, CVV, OTP, password, or expiry date with anyone.
• Avoid sharing bank SMSs with unknown individuals.
• Never share your net banking details with anyone.

How to receive money through IMPS?

Given below are the steps involved in receiving money via IMPS:

• Provide your bank account details, IFSC, linked mobile number, and MMID to the sender.
• Based on his preference to send money via mobile banking or net banking, he/she can use these details for IMPS transfer.
• Once the amount gets credited to your bank account, you will receive a confirmation message.

List of banks that offer IMPS money transfers in India

1. Axis Bank
2. Bank of Baroda
3. Bank of India
4. BNP Paribas
5. Bank of Maharashtra
6. Catholic Syrian Bank
7. Central Bank of India
8. Canara Bank
9. Citi Bank
10. Dhanalakshmi Bank
11. Development Bank of Singapore
12. DCB Bank Ltd.
13. Federal Bank
14. HDFC Bank
15. HSBC Bank
16. IDBI Bank
17. ICICI Bank
18. Indian Bank
19. Indian Overseas Bank
20. IndusInd Bank
21. Jammu & Kashmir Bank
22. Karur Vysya Bank
23. Karnataka Bank
24. Kotak Mahindra Bank
25. Punjab National Bank
26. Standard Chartered Bank
27. South Indian Bank
28. State Bank of India
29. Tamilnad Mercantile Bank
30. Union Bank of India
31. UCO Bank
32. Yes Bank
33. Ratnakar Bank
34. City Union Bank
35. Punjab and Sind Bank
36. Bandhan Bank
37. IDFC Bank
38. Barclays Bank
39. Fino Payments Bank
40. Paytm Payments Bank
41. Airtel Payments Bank
42. India Post Payments Bank Ltd.
43. Emirates NBD Bank
44. JIO Payments Bank
45. Shinhan Bank
46. NSDL Payments Bank
47. SBM Bank Ltd. 
48. Bank of Bahrain and Kuwait
49. Bank of America
50. Credit Agricole Corporate & Investment Bank

FAQs

What is the full form of IMPS?

IMPS stands for Immediate Payment Service.

What is the IMPS transfer limit?

As per the NPCI circular, the maximum per transaction amount is Rs. 2 lakh. However, the daily withdrawal limit is capped at Rs. 5 lakh max. 

How many times can I use IMPS in a day?

There is no specific limit on the number of IMPS transfers you can do in a day.

Can an IMPS payment be reversed?

Before you make an IMPS transfer, it is important to check the details. Once you have made the payment, it cannot be reversed. One way is to ask the payee to send the money back to you.

What will happen if an IMPS transfer is made to the wrong account?

In such cases, you need to inform the bank to take immediate action on the payment transaction. In case the account number entered does not exist, you will receive the money back into your account. 

Can IMPS transfer facility be used on bank holidays?

You can use it 365 days a year, irrespective of the bank holidays.

Can IMPS be used to send funds to a different country?

IMPS is only meant for domestic fund transfers and does not support international payments.

How to register for IMPS?

To avail IMPS facility, you need to register for mobile banking and/or net banking services of the bank. You can then follow the steps given above to transfer money via IMPS. 

What are the uses of IMPS?

You can use this facility to send or receive payments to peers or merchants whenever needed. 

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