written by Khatabook | August 17, 2021

IMPS (Immediate Payment Service)- What is IMPS Transfer, IMPS Payment, Timings & Limit

IMPS can be defined as an electronic-enabled, immediate, inter-bank real-time fund transfer method. Immediate Payment Service (IMPS) is a method of moving cash starting with one ledger then onto the next in the Indian financial framework. The framework continuously works 24x7x365 for interbank transactions, i.e. involving two or more banks.  Through IMPS, moving electronic cash is possible with RTGS and NEFT services in India. Residents can do IMPS transfer through different channels, like smartphones, ATMs, the web, along with SMS. 

IMPS is based on the National Financial Switch (NFS), overseen by NPCI (National Payments Corporation of India), with the support of the Reserve Bank of India (RBI). IMPS was presented in the year 2012 as a test case program by NPCI where four banks offered the IMPS- Bank Of India, State Bank of India,  ICICI Bank, and Union Bank of India. 150 banks in India now use IMPS

NPCI has extended IMPS to different banks such as HDFC Bank, YES Bank, and Axis Bank and many more. On November 22nd 2010, IMPS was dispatched publically and presently incorporates 53 business banks, 101 regions/country/metropolitan, and helpful banks.

The IMPS fund transfer mechanism is managed by the National Payments Corporation of India (NPCI). The Reserve Bank of India regulates this process.

What is IMPS?

Prompt Payment Service via IMPS is the assistance given by banks to guarantee ongoing interbank reserves move. In contrast to NEFT, assets can be transferred at any time, including public and bank holidays and weekends, utilising IMPS. 

In August 2010, NPCI performed a study on mobile payment systems with banks such as BOI, SBI, UBI, and ICICI. In September, October, and November 2010, more institutions joined, such as Yes Bank, Axis Bank, and HDFC Bank. Smt. Shyamala Gopinath, DG, RBI, launched the Immediate Payment Service on November 22, 2010, in Mumbai, and it is currently available to the general public in India.

IMPS intends to make electronic assets move simple and advantageous for clients and help RBI's objective of completing retail instalments. Financial administrations have also been made easier through IMPS.  

There are four significant parties for an IMPS exchange to happen: 

  • Remitter (Sender): The party who sends the payment. For example, it can be salary from an office, thereby, the office is the remitter.  
  • Recipient (Receiver): The party who receives the payment. From the above example, an employee who receives the salary is the recipient.  
  • Banks: The IMPS transfer can be made from the banks offering IMPS such as Bank of India, Axis Bank, State Bank of India etc.
  • National Financial Switch (NFS): The NFS aids in IMPS since it is the largest network of shared automated teller machines in India. It helps in inter-connection ATMs in the country along with convenient banking opportunities. 

Features of IMPS 

When it was first introduced in 2010, IMPS was a ground-breaking fund transfer system. It sped up and simplified payment settlements. The Immediate Payment Service system has the following features:

  • Inter-account money transfers can be made using IMPS, one of the fastest and most dependable methods. 
  • This platform also houses the Unified Payment Interface (UPI).
  • The Immediate Payment Service (IMPS) allows you to receive and send money quickly, safely, and securely.
  • IMPS is available on both the web and mobile platforms, and its services are available at all times, including public and bank holidays and off-days.
  • Money can be paid to any beneficiary over the IMPS mobile platform by simply entering their mobile phone number and Mobile Money Identifier (MMID).
  • If you're doing an IMPS fund transfer via mobile, you don't need to have a bank account number. When a transfer is completed, the bank sends a notification to both the payer and the payee.
  • The daily IMPS fund transfer limit is presently ₹ 2 lakh. In IMPS, the minimum transaction value is ₹ 1.
  • You must follow the instructions below to conduct transactions through the IMPS.
  • Register your bank account for mobile banking or net banking.
  • If you're using mobile banking to access an IMPS fund transfer, you'll need the beneficiary's Mobile Money Identifier (MMID) and your MPIN (Mobile PIN).
  • To pay the beneficiary via IMPS net-banking, you'll need the payee's account information, such as account name, number, and IFSC.

Goals of IMPS 

  • To enable bank customers to use mobile instruments to access and remit funds from their accounts.
  • Making payments easier by using only the beneficiary's mobile number
  • To help the Reserve Bank of India (RBI) achieve its goal of e-commerce payments
  • To make mobile payment systems (which were first established in India in 2008 with the Reserve Bank of India Cell Payment Guidelines) interoperable among banks and mobile carriers securely and safely.
  • To lay the groundwork for a full suite of mobile banking services.

How to do IMPS money transfer?

The following techniques are available for IMPS money transfer:

  • SMS sent from mobile phone
  • Smartphones using net banking or a mobile application
  • Using your ATM card and internet banking on your laptop/desktop/tablet

The following is a generic technique for making an IMPS transfer:

Step 1: Select the payment channel you want to use and log in with your credentials.

Step 2: Enter the recipient's MMID and cell phone number. Alternatively, you can input the bank account number as well as the IFSC or Aadhaar number.

Step 3: Fill in the amount you want to transfer.

Step 4: Add any comments or the reason for the money transfer.

Step 5: To authenticate the transfer request, enter your PIN.

Step 6: The transfer will go through without a hitch. After that, both the sender and the recipient will receive an SMS verifying the transaction.

Also Read: What are Debit, Credit Note and their Formats?

Information Required for  IMPS transaction:

To use the IMPS funds transfer service, you must have the following information on hand:

  • MMID stands for Mobile Money Indicator Device. 
  • Beneficiary's unique identifier
  • MMID of the sender’s mobile number 
  • Beneficiary's bank account number
  • The beneficiary's IFSC code (Indian Financial System Code)
  • The beneficiary's Aadhar number

IMPS Timings

In general, IMPS transactions are available 24 hours a day, seven days a week, and can be accessed from anywhere. However, to be cautious with the transfer of funds and the frauds associated with it, many banks allow IMPS transfers for only 12 hours per day, from 8 a.m. to 8 p.m.

IMPS Transaction Limits

IMPS transactions are subject to daily transaction restrictions, much as other payment methods. According to current standards, an individual can send a maximum of ₹2 lakhs per account per day via IMPS. The IMPS limit is ₹10,000 per day for MMID-based transactions.

IMPS Charges

IMPS fees are primarily determined by the amount being transferred as well as the bank's policies. Regular IMPS rates, on the other hand, vary from ₹ 2.50 to ₹ 25 for sums ranging from ₹ 10,000 to ₹ 2 lakh. Here are the IMPS charges for some of the country's most well-known banks.

ICICI Bank IMPS Charges: 

Transfer Amount

Charges (Subject to Change According to Banks)

Up to ₹ 10,000

₹ 5 Applicable GST

From ₹ 10,000 to Rs. 1 lakh

₹ 5 Applicable GST

From ₹ 1 lakh to Rs. 2 lakh

₹ 15 Applicable GST

 

PNB (Punjab National Bank) IMPS Fees: PNB clients pay the lowest IMPS fees, with transactions up to Rs. 1 lakh costing just Rs. 5.

SBI IMPS Fees: The charge for all IMPS transactions has been eliminated by SBI. As a result, you will not be charged a fee for your IMPS transactions.

*IMPS costs are determined by the bank's rules and may change. Some banks don't charge any fees for IMPS transactions over Rs. 2 lakh.

How to transfer funds with IMPS? 

Using IMPS to transfer payments is simple and quick, and it requires the least amount of work. This may be accomplished using the bank's mobile banking service. Follow the instructions below to learn how to transfer funds using IMPS:

  • To begin, download and install the appropriate bank's mobile banking app.
  • Log in to the app with the User ID and Password supplied by the bank where your account is held. In most situations, the mobile banking software will automatically get your bank account information as needed.
  • Additionally, go to the IMPS section of the program and check for ways to build your own MMID.
  • You can utilise the IMPS feature as soon as the MMID is produced.
  • Enter the receiver's MMID when sending money.
  • Finally, fill in the remaining fields, including the name of the intended recipient, the bank's registered mobile number, and the amount to be sent via IMPS.

Prerequisites for IMPS 

Remitter Registration:

  • Become a member of the bank's mobile banking service.
  • The bank will provide you with a Mobile Money Identifier (MMID) and a Mobile Pin (MPIN).
  •  Download software (application) for mobile banking (make sure your phone is compatible with the app) or utilise your phone's SMS feature if your bank offers IMPS through SMS. 

Beneficiary Registration:

  • Connect your mobile phone number to your bank account.
  • The bank will provide you with a Mobile Money Identifier (MMID).

Transfer of funds/remittance:

  • Using a mobile phone number and an MMID (Phone to Phone: P2P)
  • Using the account number as well as the IFSC Code (Phone to Account: P2A)
  • Making use of the Aadhaar number

Consumer Awareness (IMPS)

  • Don't give out your debit card information to anyone (Card number, Expiry date & CVV number)
  • Any OTP you receive should not be shared.
  • Don't send SMSs to numbers you don't recognise.
  • Passwords for online and mobile banking should not be shared.-

Also Read: How to Get UPI QR Code for your Flourishing Business?

Conclusion 

Interbank transfers can be initiated via IMPS using various methods, including mobile banking, online banking, SMS, ATMs, and so on. The significant benefit of IMPS over NEFT and RTGS, compared to other forms of fund transfer systems, is that it is available around the clock. We hope we have provided you with adequate information regarding IMPS transfer and its related details. Keep reading Khatabook for more informative blogs!

Frequently Asked Questions

1) What to do in case an IMPS transaction doesn't go through?

Check and see whether your money has been debited from your account if your IMPS transaction times out or fails. If the money has not been deducted from your account,  wait for a few minutes, then try again. 

If money gets debited from your account, you can check it after two business days. Your account would have been credited with the money that was deducted from it. Otherwise, verify with the recipient to see if the funds have been received.  If not, contact your bank's customer service department for assistance.

2) What distinguishes RTGS from IMPS?

RTGS

IMPS

RTGS is comparable to NEFT as it’s a timed service.

IMPS can be availed anytime. 

For inter-bank transfers, the process can be started from 7 a.m. to 6 p.m., and from 7 a.m. to 7:45 p.m.

A user can start any transaction at any time of day.

RTGS is reserved for transactions more than ₹ 2 lakh.

IMPS transactions have a limit of ₹2 lakh or as determined by the bank.

3) What distinguishes NEFT from IMPS?

NEFT

IMPS

NEFT transaction is done only during business hours.

With IMPS, a money transaction can be started and finished at any time, regardless of bank business hours

It will only be processed the next working day.

The money is received in the beneficiary's account immediately. 

There are no transaction costs.

There is a minimal transaction cost plus GST, depending on the amount transferred.

4) What is the procedure for completing an IMPS transaction?

To make an IMPS transaction, you can use one of the following modes:

  • Mobile Banking:  Sign up for mobile banking. After completing the registration process, you can launch the app and send money to someone else.
  • Internet Banking: Sign up for internet banking with your bank so that you can go on to the bank's website and begin sending money.
  • ATM: In case you do not have access to mobile banking or internet banking, you can conduct a money transfer by visiting your bank's nearest ATM. In addition to checking account balances and withdrawing cash, ATMs also provide the ability to carry out an IMPS transaction.

5) What is the daily transaction limit of IMPS?

The following are the transaction limitations for Mobile Banking and Net Banking: 

1) The transaction limit for the Payment Gateway is up to ₹ 10 lakh per day/per transaction. 

2) Transfer funds from your own account– no restriction (up to the available balance in the debit account). 

3) Up to ₹ 2 lakh per day/per transaction via IMPS to a registered recipient

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