IMPS Full Form in Banking and How it Works In this digital era it is very important to secure and fast money transfer. Whether you make personal payments or business transactions,instant fund transfer facilities are helpful for everyone. And the IMPS did this , it was launched on 22 November 2010 by NPCI (National Payments Corporation of India) . IMPS is a real time electronic fund option to transfer money between all banks 24×7. Through the IMPS,you can make instant payment from your mobile banking, internet banking, ATM and bank branch without any delays.
What is IMPS? The full form of IMPS is Immediate Payment Service. This is an RBI (Reserve Bank of India) regulated instant digital payment system. It is operated under the NPCI.
Main purpose of IMPS: Instant transfer funds between bank accounts. 24×7 availability including holidays. Secure and reliable transactions. This system is helpful for both individuals and businesses,where you can transfer money instantly through the mobile, ATM, internet,and bank branches.
Meaning of IMPS in Banking IMPS Immediate Payment Service meaning in banking is a real time , instant payment system,where money transfers immediately from sender's account to beneficiary's account, 24×7 available, including holidays, secure transfers with OTP,encryption, and flexible access, branch and low transaction cost minimal charges , usually Rs 5 - 15.How Does IMPS Work? The process of IMPS is secure,fast and simple. It provides real time fund transfer,where the money is transferred instantly from the sender's account to the beneficiary's account.
Step by step process: The sender initiates a transaction from their bank app or internet banking. Transaction details were sent to NPCI via an IMPS switch. NPCI verifies the sender's account details and balance. NPCI routes requests to the beneficiary bank . Money is debited from the sender's Bank account. Through the RBI,the NPCI transaction is cleared and settled. Money is credited to the beneficiary's bank account. Both parties get the confirmation message. This real time mechanism creates IMPS more fast and reliable and money transfers in a second.
Know the Eligibility of IMPS For sender (Remitter) To send money to the account:
MMID of beneficiary ( if you are sending from a mobile number) Mobile number of beneficiary. Sender's MMID and MPIN. To send money to the account number:
Beneficiary's name Account number IFSC code For Beneficiary ( Receiver) MMID of beneficiary IMPS registration with bank Make sure that the sender's and the beneficiary registration are active, otherwise the transaction can fail.
How to use IMPS A. Mobile Banking/ Internet Banking: Login to bank app/ internet banking. Go to the fund transfer section. Enter the beneficiary details ( name, account number/ MMID,IFSC code) Select IMPS, enter the amount and confirm from MPIN/OTP. B. SMS Banking : Check the bank SMS,IMPS service. Follow the SMS format. Include the benefits MMID and amount. Send SMS to the designated number of the bank. C. ATM Transfer: Visit an ATM and insert a debit card Enter the 6 digit PIN Fund transfer, and select IMPS Fill in the beneficiary details ( mobile number,MMID,account,IFSC D. Bank branch transfer: Go to the Bank branch and take the IMPS transfer form Fill in the beneficiary details and sender details Pay the application fee and submit the form Bank provides the confirmation slip Mobile and internet banking are the most convenient and fast options.
Understand IMPS with Example Example 1 You send Rs 5 thousand to your friends account via IMPS from your mobile banking app . After confirming the OTP money transfers instantly,
Example 2 The business owner transfers Rs 3 lakh to their supplier through IMPS at 8 PM. Even though bank branches are closed,as if money credit is instant.
Example 3 You transfer Rs 50 thousand from the ATM using MMID and mobile number. Transaction confirmation is received instantly,and the money is credited to the beneficiary's account.
Per Day Limit Of IMPS According to RBI and NPCI Guidelines:
Maximum limit per day: Rs 5 lakhMaximum limit per transaction: Rs 5 lakhBut Banks may have slightly different limits as per their rules, especially for customers.
Example:
Rahul has to send Rs 3 lakh to his friend.He can transfer Rs 3 lakh in a single IMPS transaction as it is less than Rs 5 lakh. If he has to send another Rs 2,50,000 on the same day,the total will become Rs 5,50,000 , which is more than the daily limit of Rs 5 lakh. Therefore,Rahul will be able to send a maximum of Rs 5 lakh through IMPS in a day.
IMPS Transfer Limit Mode Per Transaction Limit Daily Limit Notes Mobile Banking (app) Rs 5 lakh Rs 5 lakh - Rs 25 lakh 24 hours wait for newly added payees Internet Banking Rs 5 lakh Bank specific Varies for personal and corporate users SMS Banking Rs 1,000 - Rs 5,000 Usually Rs 5,000 Very limited features MMID + Mobile Number Rs 5,000 - Rs 25,000 Around Rs 5,000 Higher fund risk compared to account/ IFSC ATM IMPS Transfer Rs 50,000 - Rs 2,00,000 Bank specific Limited user interface and availability
Charges of IMPS Transfer Bank IMPS Charges (per transaction+GST) State Bank of India No charges Kotak Mahindra Bank No charges ICICI Bank Rs 2.50 - Rs 15.00 HDFC Bank Rs 3.50 - Rs 15.00 Axis Bank Rs 2.50 - Rs 10.00 Canara Bank Rs 0 - Rs 20.00 Punjab National Bank Rs 6.00 - Rs 12.00 Bank of Baroda Rs 2.50 - Rs 25.00
Note: Charges are low and affordable, making IMPS a cost effective payment option.
Benefits of IMPS Instant Fund Transfer: The biggest advantage of IMPS is that money transfers in real time. Instantly credit in the beneficiary's account, whether it's day or night.
24×7 Availability: Thus, the service is available in day,night , weekends and public holidays also. In short, you don't have to wait for bank timings.
Multi- Platform Support: You get multiple options for using IMPS like mobile banking, internet banking, ATMs and SMS banking. Every user can choose according to their convenience.
High Transaction Limit: As per RBI guidelines, it is possible to transfer up to Rs 5 lakh for personal transactions or business transactions in a day . This limit is quite flexible for small and big transactions.
Low Cost: Banks usually take minimal charges on IMPS transfers. That's why this is the most affordable and pocket friendly service as compared to other modes.
Secure Transactions: IMPS transactions are secure through an OTP ( One Time Password) and encrypted communication. This greatly reduces the risk of fraud and unauthorized access.
Minimal Information Needed: You need only a few documents for transferring money,like MMID (Mobile Money Identifier) , mobile number, IFSC code or aadhar card number. There are no complications.
International Remittance: Some banks allow remittance from overseas to India through IMPS. This means that NRIs can also easily send money to their family members.
Overall , IMPS has revolutionized digital payments due to its convenience, speed and security.
Also Read - EMI: full form types & calculation
Different Between IMPS & Other Payment Methods Features IMPS NEFT RTGS Settlement speed Instant "Batch processing (half-hourly)" Real time Availability 24×7, holidays including 24×7 online 24×7 online Minimum transfer limit Rs 1 Rs 1 Rs 2 lakh Maximum transfer limit Rs 5 lakh ( varies by bank) No upper limit No upper limit Ideal user case Urgent small to medium transfer Non urgent transfers Large value urgent transfer Charges Low ,bank specific Free/low Bank specific Access channels Mobile, internet, ATM Internet, mobile, branch Internet, mobile,branch Beneficiary details Mobile+ MMID or Account+ IFSC Account+ IFSC Account+ IFSC
Also read - NEFT meaning and charges
Conclusion IMPS makes digital banking fast, secure and convenient. With 24×7 availability, multiple platforms and low charges, this is the best option for urgent and medium value transactions. If you want to make argent payments like personal or business transactions,then IMPS is the more reliable and simple option. In the future, the integration of digital payments and IMPS is going to be more seamless and user friendly.
FAQs 1. What is the minimum amount of transfer via IMPS? The minimum limit of IMPS is Rs 1, it means if you want to send Rs 1 you can send it. There are no fixed High limit restrictions. This facility is especially helpful for those who want to do small value transactions, like mobile recharge, small payment or quick fund transfer to friends and family.
2. How long does an IMPS transfer take to complete? IMPS is a real time fund transfer system, which is available 24×7 . Money transfers in the second to receive an account.
3. Is internet banking necessary for IMPS transactions? No, you can do IMPS transactions through mobile banking,USSD, ATM or Bank branch.
4. What happens if an IMPS transaction fails? If the IMPS transaction fails for some reason, like a network issue,wrong IFSC, or the receiver account is inactive, then the money reversal process starts automatically. Usually,the money is returned to the sender's account immediately or within a maximum of 1-3 working days . If the money is not credited, you can register a complaint with your bank's customer care team or RBI banking ombudsperson.
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