Immediate Payment Service (IMPS) - What is IMPS Transfer, Timings, and Limit?

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IMPS is considered one of the popular modes of electronic interbank funds transfer. However, what is it in actual? How does it work? Find out more information about IMPS here.

1. What is IMPS?

Immediate Payment Service (IMPS) is a service provided by banks to ensure real-time interbank funds transfer. Unlike NEFT, funds can be transferred on any day of the week including holidays and weekends using IMPS.

2. Uses of IMPS

Customers can use the IMPS service to:

  • Transfer funds
  • Receive payments
  • Make merchant payments
  • Perform mobile banking transactions
  • Check Aadhaar Seeding status with the bank account

3. Details Necessary to Make an IMPS Transaction

In order to make a payment or transfer funds through IMPS, you must have at least one of the following details about the beneficiary:

  • Mobile number and Mobile Money Identifier (MMID)
  • Bank account number and IFSC
  • Aadhaar number

4. IMPS Timings

Though IMPS can be, typically, carried out 24/7, some banks have their own timings to initiate IMPS transfers. For example, SBI allows its account holders to use IMPS only between 8 a.m. to 8 p.m. It is recommended to check with your bank about the allowed timings to use IMPS. The bank allows 8 p.m. to 8 a.m. transactions, but only for a collective amount of Rs.40,000.

5. Transaction Limits

Generally, the transaction limit for IMPS transfer is set to be Rs.2 lakh. However, banks may define their own upper limit for an IMPS transaction. Check with your bank and confirm the limit before you initiate a transaction.

6. Charges Applicable

Every IMPS transaction you make is associated with a certain fee. The fee depends on the amount that is to be transferred. In addition, goods and services tax is also applicable at 18%. The table below gives the calculation of transaction charges for IMPS:

Amount to Transfer Transaction Charges (Excluding GST)
<=Rs.10,000 Rs.2.5
Rs.10,001-Rs.1 lakh Rs.5
Rs.1 lakh-Rs.2 lakh Rs.15

7. FAQs

Q. What happens if an IMPS transaction fails?
A. If your IMPS transaction times out or fails, check if your money has been debited from the account. If the money is not debited, you can wait for a few minutes and strike another transaction.

In another case, if the money is debited from your account, check your account after two working days. The debited money would have been credited to your account. Otherwise, check with the beneficiary to know if he/she has received the money. If not, contact the customer care executive of your bank for assistance.

Q. How is NEFT different from IMPS?
A. Though NEFT and IMPS are the two methods of interbank money transfer, they are different in their own ways. An NEFT transaction can be initiated only during business hours. Initiating an NEFT transaction after business hours, the transaction will be completed only the following business day. No transaction fees are applicable.

However, a money transfer transaction can be initiated and completed any time irrespective of the bank working hours in the case of IMPS. Despite incurring a transaction fee, IMPS is mostly preferred as the beneficiary gets the funds immediately in their account.

Q. How is RTGS different from IMPS?
A. RTGS is similar to NEFT in the sense that it is a timed service. The transfer process can be initiated between 7 a.m. to 6 p.m. and 7 a.m. to 7:45 p.m. for inter-bank transfers. Also, RTGS is specific for transactions worth Rs.2 lakh and above. In contrast, the upper limit of IMPS transactions is Rs.2 lakh or as defined by the bank. When it comes to the operational hours, a user can initiate a transaction at any time of the day, though a few conditions apply.

Q. How can I make an IMPS transaction?
A. You can choose one of the following modes to make an IMPS transaction:

  • Mobile Banking: Register for mobile banking to make an IMPS transaction on your bank’s mobile app. Upon successful registration, you can open the app and send the funds to another party.
  • Internet Banking: Register for internet banking facility with your bank so you can log on to the bank’s internet banking page and start sending funds.
  • ATM: If you are not registered for mobile banking and internet banking facilities, you can visit the nearest ATM of your bank and make the money transfer. ATM offers the facility to initiate an IMPS transaction in addition to the features such as checking the account balance and withdrawing money.