Introduction - IMPS (Immediate Payment Service)
IMPS stands for Immediate Payment Service. In a banking system, IMPS is a mode of transferring money from one bank account to another. IMPS online is a 24X7X365 real-time banking facility that transfers money electronically in India. The users can access the facility through mobile phone, ATM, net banking or SMS services.
IMPS is approved by the Reserve Bank of India (RBI), built on National Financial Switch (NFS), managed by NPCI (National Payment Corporation of India). IMPS online service was introduced by NPCI in 2021 as a pilot program only via four banks.
- State Bank of India
- Union Bank Of India
- Bank on India
- ICICI Bank
Later that year, YES Bank, HDFC Bank, Axis Bank were included in the list. On 22 Nov, IMPS was officially launched which now includes 150+ banks. 53 commercial & 101 domestic& other banks.
What is IMPS?
IMPS – Immediate Payment Service is a facility provided by the banks for real-time interbank funds transfer. Unlike NEFT the funds through IMPS can be transferred on any day including weekends & holidays.
IMPS was introduced with an aim to transfer money bank-to-bank easily with customer convenience in order to promote the electronification of retail banking payments as suggested by the RBI. IMPS offers a full range of mobile banking services.
There are majorly 4 active participants in an IMPS transaction:
- Remitter (Sender)
- Beneficiary (Receiver)
- National Financial Switch (NFS)
What are the uses of IMPS?
IMPS can be used to:
- Receive Payments
- Transfer Funds
- Pay to Merchants
- For Mobile Banking Transactions
- Check Aadhaar seeding status with bank account
Important Details for IMPS transaction
Transaction Timings for IMPS
Ideally IMPS transfer can be done at any time if the beneficiary is already added to your account, it is available 24X7. In case you need to add a new beneficiary to transfer funds, there may be some restrictions on timings as per the particular bank guidelines. Some banks impose guidelines for adding new beneficiaries.
E.g. the State bank of India, allows you to add beneficiaries from 6 a.m to 8 p.m.. If the beneficiary is added after 8 p.m. or before 6 a.m., the beneficiary will be added the next day after 6 a.m. After the beneficiary is added then you can transfer the funds.
Transaction Limit for IMPS
In general, the transaction limit for IMPS is Rs. 2 Lakh. However, it is up to individual banks to define the upper limit for IMPS transactions. There is no minimum limit for IMPS transactions. The limit may be stringent for the first few days after adding the beneficiary. It is advisable to check the limit with the bank before initiating the payment.
What are the charges applicable?
Certain amount or charges are applicable for every IMPS transaction depending upon the amount. The charges applicable on IMPS transactions also includes 18% GST. Below are the charges applicable for IMPS transfer in general, however, these may vary from bank to bank. It is better to confirm the charge from the bank itself, before proceeding.
Fee for IMPS transactions –
|Less than Rs. 10,000||Rs. 2.5|
|Rs. 10,001 to Rs. 1 Lakh||Rs. 5|
|Rs. 1 Lakh to Rs. 2 Lakh||Rs. 15|
How to transfer funds via IMPS?
Transferring funds using IMPS is very easy, quick & secure. It involves the least effort, & can be done using a net banking facility. You can transfer money using IMPS in following ways:
- Through SMS
- Through Net Banking & mobile app
- ATM with your ATM Card
Follow the below steps to make an IMPS transfer-
Step 1: Select the mode you want to transfer the money. Log in to your banking account using your credentials.
Step 2: Enter the bank account number, IFSC or MMID number & mobile number or Aadhar number to initiate the transfer.
Step 3: Enter the amount you want to transfer
Step 4: If needed enter the remarks or purpose of the money transfer.
Step 5: Enter the PIN to authenticate the transfer.
Step 6: After successful transfer, the sender & the receiver both will receive a confirmation message.
List of Banks offering IMPS in India
- Andhra Bank
- Allahabad Bank
- Adarsh Co-operative Bank Ltd
- Axis Bank
- Bandhan Bank Ltd.
- Bank of India
- Bank of Baroda
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- City Union Bank
- Cosmos Co-operative Bank
- Corporation Bank
- Development Bank of Singapore
- Dena Bank
- Dhanalakshmi Bank
- Development Credit Bank
- Federal Bank
- HDFC Bank
- IDBI Bank
- ICICI Bank
- Indian Overseas Bank
- Indian Bank
- ING Vysya Bank
- IndusInd Bank
- JanataSahakari Bank, Pune
- Jammu & Kashmir Bank
- Karur Vysya Bank
- Karnataka Bank
- Kerala Gramin Bank
- Lakshmi Vilas Bank
- Kotak Mahindra Bank
- Nainital Bank
- Oriental Bank of Commerce
- Punjab and Sind Bank
- Punjab and Maharashtra Co-op Bank
- Punjab National Bank
- RBL Bank
- Standard Chartered Bank
- South Indian Bank
- State Bank of India
- Syndicate Bank
- UCO Bank
- The Greater Bombay Co-op Bank
- Union Bank of India
- Vijaya Bank
- United Bank of India
- Yes Bank & more.
This list is the name of only a few banks in alphabetical order. This is subject to change.
FAQs of IMPS
IMPS funds transfer charges are based on the transferred amount. The IMPS fund transfer charge may range between Rs 2.5 to Rs 15, excluding GST.
To transfer through IMPS, you require to have details such as MMID Number or Mobile Money Identifier of the beneficiary, IFSC Code of the beneficiary, Aadhar Number of the beneficiary, Mobile number of the sender, and Bank Account Number of the beneficiary.
Yes, IMPS transfer is definitely a safe transfer option as it is enabled with end-to-end encryptions and firewalled servers.
Both IMPS and NEFT have their own benefits. However, NEFT transactions are not accessible 24X7. IMPS is a good payment method for transactions up to ₹ 2 Lakh, while NEFT is good for making bigger payments. There are no upper limit transactions for NEFT transactions.
RTGS & NEFT both transfer methods are timed services. The transfer process can be initiated between 7 AM to 6 PM and 7 AM to 7:45 PM for inter-bank transfers. The minimum limit for RTGS is Rs.2 lakh, while the upper limit of IMPS transactions is Rs.2 lakh or as defined by the bank. A user can initiate a transaction at any time of the day, a few conditions may apply as per the bank’s policy.
You can select one of the following modes to make an IMPS transaction:
Internet Banking: Register for the internet banking facility with your bank. Log in to your account & start sending funds.
Mobile Banking: By using your bank mobile app, after registration, you can transfer the funds to your beneficiary account through IMPS mobile.
ATM: In case, you are not registered for mobile banking and internet banking facilities, by visiting the nearest ATM of your bank and you can transfer the money.