What is IMPS in Banking? | How to Transfer Money Through IMPS

IMPS is an abbreviation for "Immediate Payment Service". It is an instant interbank electronic fund transfer service that helps you access your bank account and transfer funds immediately and securely. It can be done through various channels such as ATM, Mobile Phones, Internet Banking, etc. The transferred money is credited to the beneficiary account instantly. This is facility was introduced in 2010 by National Payments Corporation of India (NPCI).

Through this service, one can transfer or receive money even on Sundays and bank holidays. This service is available 24x7, throughout the year.

Benefits of IMPS

  • IMPS is secure and cost-effective.
  • It is one of the fastest ways to transfer the funds.
  • There are no time constraints. You can transfer funds using IMPS 24X7 all days (including Sundays and holidays).
  • There is no cap on minimum amount that can be transferred through IMPS.
  • It is channel independent can be initiated from Mobile/ Internet / ATM channels.
  • You can transfer funds using mobile phone, internet banking or ATM.
  • You get the confirmation of debit of funds in your account as well as credit of funds in beneficiary's account by SMS instantly as soon as the transaction is processed.

There are some limitations, while using IMPS for fund transfer, which are listed below:

  1. Only one beneficiary (receiver) can be added and approved in a single calendar day which will be activated by the internet banking system within 4 hours, if the remitter (sender) approves between 6 AM and 8 PM.
  2. Funds can only be transferred to the new beneficiary after its activation.
  3. Maximum Rs. 10000/- can be transferred on the first day of activation. It is decided by the bank and varies from bank to bank.
  4. The period of first few days (may vary from bank to bank) after activation is called :cooling period".
  5. A fixed sum of (for example Rs. 50,000/- (maximum)) can be transferred to the new beneficiary during this cooling period. The amount of this fixed sum is decided by the bank and varies from bank to bank.
  6. A fixed sum (for example maximum Rs. 50,000/-) can be transferred to the new beneficiary every day once cooling period gets over.

Following particulars of the beneficiary (receiver) are required to send the money through IMPS

  • If the customer (sender) is using option "IMPS using Account number and IFSC"
    1. Account number and IFSC of the beneficiary (receiver)
    2. The beneficiary needs to be added in NetBanking in order to transfer the money
  • If the customer (sender) is using option "IMPS using Mobile Number and MMID"
    1. The mobile number and unique 7 digit Mobile Money Identification Number (MMID) of the beneficiary (receiver). It is also mandatory
    2. that the beneficiary has got his mobile number registered with his respective bank in which his account is hosted

IMPS Transaction Charges

Facilitating IMPS charges applies not only to banks but also to the government. Therefore the transactions using IMPS have some specific charges.

  • For transfers up to Rs. 10,000: Rs. 2.50 with GST
  • For transfers from Rs. 10,000 to Rs. 1,00,000: Rs 5 with GST
  • For transfers from Rs.1,00,000 to Rs. 2,00,000: Rs 15 with GST