What is IMPS?, 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).

Using IMPS, one can make payments, make bill payments, transfer money online and conduct various financial transactions.

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

To conduct a transaction through an IMPS transfer, the sender must have the MMID of the beneficiary. In case the MMID isn't available, the beneficiary's bank account number and IFSC are required.

Participants for IMPS

The participants for IMPS are,

• Remitter (Sender)
• Beneficiary (Receiver)
• Banks

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.

Limitations of IMPS

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

1. All banks do not support IMPS.
2. Funds can only be transferred to the new beneficiary after its activation.
3. IMPS has a daily maximum limit of Rs.5 Lakhs.
4. Charges are associated with IMPS transactions which may be between Rs.5 to Rs.15 depending by the respective bank.
5. People who are not familiar with using mobile banking apps or other digital financial services, using IMPS can be confusing and not so easy.

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" or person-to-account payment
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" or person-to-person payment
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
• For transfers above Rs.2,00,000: Rs 25 with GST

IMPS Timings

You can transfer funds using IMPS 24X7 all days (including Sundays and holidays).

IMPS Transaction Limit Per Day

The Reserve Bank of India (RBI) has increased the IMPS limit to Rs.5 lakhs per day from earlier limit of Rs.2 lakhs per day.

Banks Live on IMPS