IMPS Full Form, Meaning, Features, Benefits and How to do IMPS

IMPS (Immediate Payment Service) is a real-time fund transfer system that enables instant money transfers across banks in India, 24x7. Regulated by the RBI and NPCI, it ensures secure transactions that reach the beneficiary within minutes, ideal for everything from urgent payments to everyday transfers. 

In this article, you'll learn everything you need to know about IMPS, including how it works, how to use it across different platforms, the applicable charges, transfer limits, eligibility criteria, and what makes it one of the most reliable digital payment options in India today.

What is IMPS?

IMPS, or Immediate Payment Service, is a real-time electronic fund transfer system that enables instant money transfers between bank accounts in India. Operated by the NPCI and regulated by the RBI, IMPS allows individuals and businesses to send and receive funds securely and seamlessly, 24x7. Whether you're making payments, paying bills, or transferring money to loved ones, IMPS offers a reliable and efficient solution through mobile banking, internet banking, ATMs, and even bank branches.

How Does IMPS Work?

IMPS facilitates real-time electronic fund transfers in India. Here’s how IMPS transfers work:

Step 1: The sender initiates the IMPS transfer through their bank’s mobile app, internet banking portal, or SMS

Step 2: The transaction details are sent to the National Payments Corporation of India (NPCI) via the IMPS switch.

Step 3: NPCI validates the sender’s account details and balance, and routes the request to the beneficiary’s bank using its directory services.

Step 4: NPCI sends an authorisation request back to the sender’s bank once validation is successful.

Step 5: The sender’s bank debits the specified amount from the sender’s account.

Step 6: NPCI clears and settles the transaction with the Reserve Bank of India (RBI), and credits the amount to the beneficiary’s bank.

Step 7: The beneficiary’s bank credits the amount to the beneficiary’s account and notifies NPCI.

Step 8: Both the sender and the beneficiary receive confirmation messages about the successful IMPS transaction.

Example Of IMPS 

Suppose you initiate an IMPS transaction of Rs. 1,50,000 lakh at 11:00 a.m. The transfer will be processed immediately, and the beneficiary will receive the funds within minutes (maybe by 11:10 a.m.).

Eligibility Of IMPS

Here are the requirements to send money via IMPS::

For Remitter (To Send Money to Person):

• Mobile Money Identifier (MMID) of the beneficiary
• Mobile number of the beneficiary
• Name of the beneficiary
• MMID and MPIN of remitter

For Remitter (To Send Money to Account):

• Name of the beneficiary
• Account Number of the beneficiary
• IFS Code of the beneficiary bank

For the Beneficiary (Receiver): 

• MMID of beneficiary
• IMPS registration with bank

How To Use IMPS?

IMPS provides a variety of methods for transferring money quickly and conveniently. Here is how you can leverage IMPS through different platforms:

IMPS via Mobile Banking or Internet Banking

Step 1: Log in to your bank’s mobile banking app or internet banking portal with your credentials.

Step 2: Navigate to the ‘Fund Transfer’ section.

Step 3: Enter the beneficiary details, such as name, mobile number, bank account number or MMID, and IFSC code.

Step 4: Select ‘IMPS’, enter the amount, verify the details, and confirm the transaction using your MPIN or OTP.

IMPS via SMS

Step 1: Check if your bank supports IMPS via SMS.

Step 2: Draft an SMS in the format provided by your bank.

Step 3: Include the beneficiary’s MMID and the amount to be transferred.

Step 4: Send the SMS to the bank’s designated number for IMPS transactions.

IMPS via ATM

Step 1: Visit the nearest ATM of your bank and insert/swipe your debit card.

Step 2: Enter your 6-digit ATM PIN to access the ATM menu.

Step 3: Navigate to the ‘Fund Transfer’ section and select the ‘IMPS’ option.

Step 4: Enter the beneficiary's details, including their mobile number and MMID, or account number and IFSC code.

Step 5: Enter the amount to be transferred and verify the details.

Step 6: Click on the ‘Confirm’ or ‘Send’ button to complete the transfer.

IMPS via Bank Branch

Step 1: Visit your bank branch and request an IMPS transfer form.

Step 2: Fill in the form with the beneficiary’s name, account number, bank details, transfer amount, and your account information.

Step 3: Submit the completed form along with the applicable IMPS fee.

Step 4: The bank will process the transaction and provide a confirmation slip.

IMPS Transfer Application Form​

You can collect the IMPS form by visiting your bank branch. The forms of each bank may be different from each other. Here is a sample of IndusInd IMPS form:

IMPS Transfer Charges

Here’s an overview of the IMPS charges of different Indian banks: 

IMPS Timings

IMPS transactions are 24x7, including public holidays and weekends. Some banks might limit IMPS timings (e.g., 8:00 a.m. to 8:00 p.m.) for transfers done through bank branches. 

What is the IMPS Transfer Limit?

Benefits Of IMPS

• IMPS facilitates real-time fund transfers, crediting the recipient's account immediately.
• With IMPS, customers can send money at any time, 24x7, even on weekends and public holidays.
• IMPS is supported across different platforms, such as mobile banking applications, internet banking, ATMs, and even SMS-based services. This provides a smooth and user-friendly experience across different devices.
• Customers can send up to Rs. 5 lakh per day, which makes IMPS ideal for both personal and business transactions, including high-value transactions.
• IMPS is an economical choice, with minimal transaction charges usually between Rs.5 and Rs.15, subject to the bank.
• IMPS ensures security by using OTP-based authentication and encrypted communication. This protects financial transactions from fraud.
• IMPS avoids the sharing of complete bank account information. Transfers can be initiated with minimum information, such as a registered mobile number, MMID, or Aadhaar number.
• Remittances can be done through several modes, such as mobile banking platforms, internet banking, ATMs and SMS services.
• IMPS enables remittances internationally. Money can be remitted from overseas to an Indian account by money transfer service providers that have partnerships with Indian banks that provide IMPS facilities.

IMPS vs Other Payment Methods

With ongoing technological advancements, IMPS (Immediate Payment Service) is set to become even simpler to use, scalable, and secure, allowing for wider use across all strata and helping India move ahead on the road to digital financial inclusion. The 24x7 facility enables users to make transactions at their convenience, getting around the shortfalls of payment systems such as NEFT and RTGS.