What Is IMPS? – Full Form, Features, Steps, Charges and More

The full form of IMPS in banking is Immediate Payment Service. This fund transfer facility gives you real time updates on your online payments, including bills, fees, tickets, merchants and more. Knowing what is IMPS is important for transferring funds easily as you can use this facility for urgent needs. 

However, there are limits, charges and timings that you should know when making hassle-free transfers. Now that you know the full form of IMPS in banking, read on to learn about more.

What is IMPS Transfer?

Following are some points to give you a complete overview of this facility: 

• It was launched by the National Payment Corporation of India (NPCI) on 22nd November 2010
• It’s an electronic money transfer facility for making interbank fund transfers
• You can opt for it on mobile, Internet, ATM and SMS banking channels
• Only the banks licenced by the Reserve Bank of India (RBI) can provide this facility
• With this feature, you can monitor payments in real time, even when banks are closed
• It is among the most accessible options for secure and cost-effective banking
• It enables you to move money at any time and any place of your choosing

Features of IMPS

Now that you know the meaning of IMPS, here are some of its features.

• Secure: It follows encryption and authentication protocols to protect your funds
• Flexible: This facility is available 24/7, even on bank and gazetted holidays
• Accessible: Available through net banking, mobile banking and more
• Versatile: Can initiate Peer-to-Peer (P2P) or Person-to-Merchant (P2M) payments easily
• Instant: Funds get transferred instantly, in real time, so you do not have to wait
• Easy: You can transfer funds effortlessly with the recipient’s banking or contact details

Types of IMPS Transfers

Here are different channels through which you can make an IMPS fund transfer:

• Mobile Banking: Send money with the recipient’s mobile number linked to a bank account and a seven-digit MMID number
• Net Banking: With beneficiary’s account number and IFSC code, you can easily send money online
• Bank’s ATM: ATMs allow you to transfer money, given that you have the beneficiary’s mobile number and MMID
• SMS: Send a text based on the bank’s prescribed format using the beneficiary’s MMID number to initiate a fund transfer

IMPS Transaction Limit and Timings

While IMPS is a quick and easy option, it has some restrictions regarding timing and amount. In terms of the IMPS transaction limit, the RBI allows up to ₹5 lakhs per day on transactions, except for SMS and IVRS. Similarly, the IMPS facility is available for all hours of the day, but a few banks have restricted timing for adding beneficiaries. 

This helps banks avoid any fraudulent activities and take immediate action. So, ensure you check the timings when adding a beneficiary for easy payments.

IMPS Transaction Charges

Here are the charges for IMPS levied by some prominent banks in the country:

Bank	Charges
Axis Bank	₹2.5 – ₹10 per transaction
HDFC Bank	₹3.50 – ₹15 per transaction
ICICI Bank	₹2.5 – ₹15 per transaction
Kotak Mahindra Bank	₹2.5 – ₹15 per transaction
Punjab National Bank	₹5 – ₹12 per transaction
State Bank of India	Nil
YES Bank	₹5 – ₹15 per transaction

Disclaimer: Note that these charges for IMPS transfer are exclusive of GST. They also depend on your transaction amount and are also subject to change at the bank’s discretion. Furthermore, they are for outward transactions only. So, make sure to check with your bank before initiating the transfer.

How to Transfer Money Through IMPS

Here are the steps to follow for IMPS transfer:

1. Log in to your bank’s net or mobile banking platform
2. Click on the ‘Transfer’ option 
3. Select ‘Add Beneficiary’ or ‘One Time Transfer’
4. Select ‘IMPS’ as the transfer method
5. Add required beneficiary details (MMID, account and mobile number, etc.)
6. Enter the amount and add a remark
7. Click on ‘Confirm’ to receive OTP on your registered mobile number
8. Enter the OTP to complete the transaction

Advantages of IMPS

Whether it’s a personal or business transaction, IMPS offers flexibility, speed, and reliability, making it an essential tool for modern banking needs. Here’s what makes IMPS stand out:

• Speed and Security: IMPS processes transactions in real time and employs advanced security protocols to ensure safe and fast fund transfers
• Convenient Access: IMPS is accessible via internet banking and mobile platforms, giving you the flexibility to manage transactions from anywhere
• Always Available: This service operates 24/7, including weekends and public holidays, making it ideal for urgent money transfers
• Effortless Beneficiary Setup: Adding beneficiaries is simple—just use the recipient’s mobile number and MMID for quick setup without the need for account details
• Real Time Alerts: Both sender and receiver get immediate notifications, keeping you informed about the transaction status
• Multi-Purpose Tool: IMPS isn’t just for fund transfers; you can also use it for merchant payments, mobile banking, and other financial activities

Points to Remember for IMPS

In addition to the timing, transfer limit and charges for IMPS, here are some other key points to note:

• You can only make an IMPS transfer if you have registered for mobile banking services
• You must have the Mobile Money Identifier (MMID) and MPIN
• You can also make fund transfers with bank account number and IFSC

How to Register for IMPS in 2024

The registration process for IMPS is as follows:

1. Download your bank’s mobile banking app 
2. Register for mobile banking 
3. Note the MMID and MPIN number for your account

Using this, you can receive money into your account as well as send funds up to ₹5 lakhs. 

With these steps, it is easy, fast and convenient to transfer money. This is why many lenders opt for this option to disburse funds to the borrower, allowing them to give instant loans, like those offered by Fibe.

With the Fibe Instant Cash Loan, you can get up to ₹5 lakhs in a few minutes as we have a quick approval and minimum documentation policy. You also enjoy pocket-friendly rates with no prepayment charges. Download our Personal Loan App or go to our website to apply now to get the required funds!

FAQs on IMPS Transfer

What is IMPS and how does it work?

It’s a real time fund transfer facility which stands for Immediate Payment Service. For this, you have to register for mobile banking. Additionally, you require the receiver’s mobile number and Mobile Money Identifier (MMID) or bank account details. Using these details, you can send or receive funds instantly.

What is an example of an immediate payment service?

Immediate Payment Service (IMPS), Real Time Gross Settlement (RTGS) and UPI are some examples of instant payment options available in India.

What is the IMPS transfer limit?

As per the RBI guidelines, the maximum daily limit for IMPS transfer is ₹5 lakhs except for SMS and IVRS, but it can vary depending on the banks.

What happens if IMPS is not credited?

If the transaction fails, wait a few minutes before initiating another transaction. If the amount isn’t credited to the beneficiary’s account but debited from your account, it will get reversed within two working days.