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IMPS, short for Immediate Payment Service, is a service through which one bank can send money to another bank within seconds to minutes. You can use it to send money on the weekend as well as on holidays.
IMPS can be accessed using a variety of electronic tools, including mobile phones, the internet, text messages, and ATMs.It is aimed at facilitating easy and reliable cash transfer transactions among clients. In 2010, IMPS was introduced by two significant organizations in India: NPCI and RBI for efficient fund transfer between bank account. The following is an analysis of the key features of IMPS and a guide to using that useful payment method.
What is IMPS?
Many banks provide an instant fund transfer service called IMPS – immediate payment service. IMPS allows you to transfer money 24x7, in contrast to NEFT which operates only up to 6pm, Saturdays and national holidays.
IMPS’s prime purpose lies in making electronic remittances user-friendly for customers while contributing towards RBI’s vision of driving adoption of e-payments in retail. Moreover, IMPS is also the basis of many other mobile banking ventures.
IMPS transactions involve four parties:
- The Banks
- Receiver [Beneficiary]
- Sender [Remitter]
- NFS [National Financial Switch]
Characteristics of IMPS
Key characteristics of IMPS include:
- Fund transfers round-the-clock seven days a week.
- When fund transfer is done, not only the sender but also the receiver of both credits and debits gets a notification.
- They offer quick and effortless transfers as their name suggests.
- Multi-use/ versatile modes.
- Suitable not only for funds transfer but for over-the-counter buying, online shopping, insurance premium payment, school fees, ticketing and so forth.
- Especially in comparison with NEFT, user-friendly.
Benefits of IMPS
IMPS offers several advantages:
- These are accessible at all times and from anywhere.
- Open even on national and festive days.
- Instant fund transfers without delays.
- There will be no need for sharing confidential information while transferring.
- Cost-effective money transfer.
How to Transfer Money through IMPS?
If you're looking to transfer money swiftly and securely, IMPS (Immediate Payment Service) is a convenient option. You can execute an IMPS transfer through various channels such as internet banking, mobile banking, or a Pre-Paid Payments instrument issuer (PPI). Here's a step-by-step guide to help you through the process:
- Install the App or Access Internet Banking: Begin by installing the mobile banking application of your respective bank. Alternatively, you can use the bank's internet banking platform.
- Login: After installation, log in using your designated credentials, including your User ID or Customer ID and password.
- Initiate the Transfer: Upon successful login, navigate to the "Transfer" option and choose to add a new beneficiary or opt for a one-time transfer.
- Provide Recipient Details: To facilitate the transfer, input the recipient's information, which may include their mobile number and MMID, or their account number and IFSC code.
- Fill in Transaction Details: Enter the necessary transaction details, including the beneficiary's name, their registered mobile number, the beneficiary's MMID (Mobile Money Identifier), and the precise amount you intend to transfer. Alternatively, you can input the recipient's account number and the relevant IFSC code.
- Confirm and Accept Terms: Review the details of the transaction, accept the terms of service (Terms & Conditions), and then confirm the transaction.
By following these steps, you can easily transfer funds using the IMPS service, ensuring a swift and secure transfer of money to your intended recipient.
What is MMID?
For an IMPS transaction, you'll need something called an MMID (Mobile Money Identifier). It's a unique seven-digit number that you get when you sign up for mobile banking. Both the person sending the money and the one receiving it must have an MMID for the transfer to work smoothly.
Using the mobile number and the MMID together helps you send money without any mistakes. Each customer has a different MMID for each of their accounts. You can choose the right account for the transfer by using the correct MMID.
If the MMID or the mobile number is entered incorrectly, the money won't go through. To find your MMID, just log into your mobile banking app and look for the "Know your MMID" option. Some banks also let you send an SMS to a particular number to track your IMPS reference number and receive your MMID through an SMS.
Is it Possible for Any IMPS Transfer Failures?
There are times when IMPS transfers fails/times out. In such a case, make sure that the funds have been withdrawn. Try again in a few hours if this does not solve the problem.
How to Track IMPS Transactions?
For tracking IMPS transactions, you will be required to log into your net banking account, enter the IMPS reference number and confirm the transaction’s status.
Things to consider while using IMPS.
When using IMPS, consider the following factors:
- Remember to include mobile banking details for fund transfer.
- When Sending Funds, Get All Beneficiary Details.
- Confirm all data prior to beginning on transfer.
- In case of any complications while making orders through your mobile phone, try making it through a computer.
Major banks providing IMPS facility
Several well-known banks offer IMPS services, including:
- Punjab National Bank
- Axis Bank
- Bank of India
- Jammu and Kashmir Bank
- City Union Bank
- Bank of Maharashtra
- Yes Bank Ltd
- Bank of America
- Bandhan Bank
- Kotak Mahindra Bank
How to Resolve Queries for IMPS Transfer?
If you have doubts about the IMPS transfer or do not know what is IMPS in banking, you can contact the customer care executive of your respective bank. They will give you the data you need and help resolve all the problems you're experiencing.
IMPS Transaction Limit
Usually, you can transfer up to Rs. 2 lakh using IMPS. But different banks might have their own maximum limits for IMPS transfers. Be aware that the limits can be stricter for the first few days after you add a new person to whom you want to send money. It's a good idea to check with your bank about the limit before you start the transfer.
When you make the IMPS transaction, you also have to provide a fee for it. This particular fee will depend on the amount to wish to transfer. Along with the fee, the goods and services tax, which is 18%, will also be added.
Amount to Transfer
|Transaction Charges (Excluding GST)|
|Rs.1 lakh-Rs.2 lakh||Rs.15|
So, for instance, if you're transferring INR 5000 to INR 8000, you need to provide a fee of INR 2.50. The amount that ranges between INR 10,000 Lakh to INR 1 Lakh will be charged INR 5, and the transfer of INR 1 Lakh to INR 2 Lakh will be charged INR 15. These charges may be different and would depend on your bank.
If you wish to become qualified for the Immediate Payment Service, you must give the Aadhar Number, mobile numbers, and MMID [Mobile Money Identifier]. You also have to provide the IFSC code and the bank account numbers of both the receiver and sender.
Limitations of IMPS
Just like all the other fund-transferring methods, you will also find that the Immediate Payment Service, which is the full form of IMPS, also comes with limitations. This means you can only transfer INR 5 Lakhs through IMPS. But the IMPS limitation might differ greatly from one bank to another. So, it will be much better to check the limitations of your bank before you transfer the funds.
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Frequently Asked Questions
In short, yes. All customers who know what is IMPS transfer and want to make one should have a bank account to conduct the IMPS transaction.
When customers do have a bank account but want to use the Immediate Payment Service, which is the full form of IMPS, they can use the PPI method [Prepaid Payment Instrument Issuer].
Yes, you can do so. You can link two accounts or more with the same mobile number through the UPI method or Unified Payment Interface and conduct transactions 24x7.
In short, no. You cannot stop or even cancel a particular transaction through IMPS because it's an instant fund transfer process.
You don't have to register again for mobile banking services when you change your mobile number. It's because the banks will provide you an option to "update" your mobile number for mobile banking.
To register IMPS-related complaints, you need to visit the website of the National Payment Corporation of India [NPCI]. You will get a CRN reference number after lodging the complaint.
There is a restriction or limit to making IMPS-related transactions each day.
In short, yes, you can. On several occasions, it's possible to reverse the immediate payment when an error takes place in the authorization when making the transaction.
When you transfer funds to the wrong bank account, your bank will provide you with information about the branch and bank of the wrong recipient.
When a transaction times out or fails through IMPS, you should check whether or not the funds have been debited from your account. If not, you need to wait several times to make another transaction.