IMPS is India’s real-time digital payment system that enables instant fund transfers across banks 24x7. The IMPS full form is Immediate Payment Service. Knowing what is IMPS is important as it supports secure money transfers through mobile banking, net banking, ATMs, and branches.

This guide explains IMPS meaning, features, limits, charges, and how to use IMPS for fast and reliable transactions.

Key Highlights

• Enables instant transfers via account number + IFSC or mobile number + MMID.
• Works across multiple channels such as mobile banking, net banking, ATM, SMS, and bank branches.
• IMPS limit is up to ₹5 lakh per transaction/day (bank-wise variations possible).
• Regulated by RBI and operated by NPCI for secure, encrypted transfers.

What is IMPS?

IMPS is a real-time electronic fund transfer system that works 24/7, allowing instant money transfers between banks. It is developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI).

IMPS Full Form in Banking

IMPS full form is Immediate Payment Service. It is an RBI-regulated instant digital payment system that enables secure, real-time transfer of funds between bank accounts 24/7 across India.

How Does IMPS Work?

IMPS works 24/7 through mobile banking, internet banking, or ATMs. To use IMPS, a sender initiates a transfer through their bank's app or online portal by providing the recipient's bank account number and IFSC code, or their mobile number and Mobile Money Identifier (MMID).

The NPCI handles the transaction, debiting the sender's account and crediting the recipient's bank account instantly. 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 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 RBI, and then credits the amount to the beneficiary’s bank account.

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.

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 the 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 the 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's details, including 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 Limit Per Day

According to RBI and NPCI guidelines, the maximum IMPS limit per day is ₹5 lakh, and the maximum limit per transaction is also ₹5 lakh. 

IMPS P2A Transfer

IMPS P2A (Person-to-Account) transfers are made using the beneficiary’s bank account number and IFSC code. These transfers usually have higher limits and are preferred for regular banking transactions.

• Per-transaction limit: Up to ₹5,00,000
• Daily limit: Usually up to ₹5,00,000, but may go higher for select banks

Exact limits depend on the bank’s internal policy and whether the beneficiary is newly added.

IMPS P2P Transfer

IMPS P2P (Person-to-Person) transfers use the beneficiary’s mobile number and MMID. These generally have lower limits due to higher fraud sensitivity.

• Per-transaction limit: ₹5,000 to ₹25,000
• Daily limit: Usually capped at ₹25,000

Limits may vary by bank and customer risk profile.

What is the IMPS Transfer Limit?

While NPCI allows transfers up to a certain cap, banks may set lower limits. The table below shows the commonly applicable IMPS transfer limits across modes.

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. 

Benefits of IMPS

Given below are some benefts of IMPS:

• Instant real-time fund transfer
• Available round the clock
• Multiple access channels
• Suitable for urgent payments
• Secure OTP-based authentication
• Minimal or zero transaction charges

IMPS vs Other Payment Methods

IMPS is often compared with NEFT and RTGS based on speed, availability, and transaction limits.

IMPS is transforming digital payments with ease and security. Its round-the-clock service empowers users anytime, anywhere. The 24x7 facility enables users to make transactions at their convenience, getting around the shortfalls of payment systems such as NEFT and RTGS.

Related Articles:
1. Differences between NEFT, RTGS and IMPS
2. IMPS Reference Number: Meaning, and How to Track it Online