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by 5paisa Research Team Last Updated: 2023-11-21T15:54:40+05:30
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IMPS, which stands for Immediate Payment Service,offers an efficient and quick money transfer service in India. With IMPS, individuals can make a purchase, pay bills or transfer money to family members or friends hassle-free. If you are eager to learn about IMPS in full form and all other relevant information, a thorough reading till the end will benefit you greatly.

What is IMPS in Banking?

Immediate Payment Service or IMPS is an Indian electronic fund transfer system that enables account holders to transfer money instantly from one account to another. It was launched in 2010 and has gained popularity in the fast-paced world. With speedy and convenient services, it has grabbed the attention of Indian customers looking for a hassle-free money transfer system. 

IMPS via Mobile 

IMPS via mobile phone is one of the most popular ways of transferring funds. This can be done simply with the use of a mobile phone. Therefore the conventional way of visiting an ATM or bank branch to transfer money is no more required. All an account holder requires is a mobile banking app and registration of the mobile number with the bank. 

Another thing which is required is MMID or Mobile Money Identifier, that is a 7-digit unique number that helps in the identification of the bank account and mobile number. Once the registration is done and the creation of MMID, one can easily transfer funds by selecting the IMPS option, entering the MMID and phone number or the beneficiary’s account number and IFSC and finally entering the amount. 
 

IMPS via Internet banking 

Another popular method of enabling IMPS services is via Internet banking. With this, customers can instantly transfer funds using computers or mobile phones. For this, an Internet banking account with the bank is necessary. The mobile number must also be registered with the bank. On completing the registration and MMID creation, fund transfer can be done by following the simple steps mentioned below:

●    Log into the portal of Internet banking of your bank
●    Select the IMPS option and follow it by entering MMID and mobile number or the beneficiary’s account number and IFSC code. 
●    Enter the total amount that you intend to transfer
●    Enter the PIN and end the authentication process by entering the OTP. 

Upon transaction confirmation, funds are instantly transferred to the account of the beneficiary. 
 

IMPS via SMS 

IMPS via SMS is another convenient way of transferring funds using a cell phone. Here, a customer must send a message to a designated number without requiring mobile banking or the Internet. However, mobile number registration and MMID creation remain constant. But here, the customer needs to send an SMS following a specific format to a given number along with the MMID or mobile number or the beneficiary’s IFSC code or account number, followed by the amount that needs to be transferred. Funds will be automatically transferred to the account of the beneficiary after confirming the transaction with an OTP. 
 

What Are The Benefits of IMPS?

IMPS offers a plethora of benefits to customers. Some of the most notable benefits of IMPS are mentioned below:

●    Instant fund transfer offers the utmost convenience to customers, enabling them to receive and send money instantly. 
●    The round-the-clock availability of IMPS makes it a feasible option that can be accessed 24 hours a day and 7 days a week. 
●    IMPS can be used via SMS, mobile banking or Internet banking, making it more diversified for the customers. 
●    IMPS comes with top-notch security with encrypted protocols that preserve the security of the customer’s transactions. 
●    IMPS is also an affordable option compared to cheque payments or wire transfers. 
 

Requirements for Making IMPS Transactions Online 

After knowing IMPS full form in banking and What is IMPS or its various benefits, it is essential to gain knowledge about the requirements for making online transactions using IMPS. Customers are required to fulfil some requirements, which are mentioned below:

●    The customer must have an Internet banking facility enabled for their bank account
●    The customer's mobile number must be linked to the respective bank account. 
●    Customers must have access to the website of Internet banking or the mobile banking app of their bank to initiate the IMPS transaction. 
●    The customer intending to transfer funds through IMPS must know the account number and the IFSC code of the beneficiary’s account. 
●    Sufficient funds for making the transfer must be ensured
●    Check limitations concerning a certain amount of transfer if any. 
 

How to Receive Money Through IMPS to Your Bank Account? 

Several simple steps must be followed to receive money through IMPS to the bank account. These are:

●    Ensure you have linked your mobile number to your bank account and successfully registered for net and mobile banking. 
●    Ask the sender to provide their bank account details and other relevant information such as account number and IFSC code.
●    Once you have successfully received the bank account details of the sender, log in to your Internet banking or mobile banking account. 
●    Search for the option IMPS and select ‘Receive Money
●    Enter the bank account details of the sender
●    Enter the total amount of money that you intend to receive
●    Confirm the details and click ‘Submit.’

You will find the credited amount in your bank account shortly.
 

What is the IMPS Reference Number? 

IMPS reference number is a unique number assigned to every IMPS transaction. The bank generates an IMPS reference number with the initiation of the transaction and is also used for tracking the transaction status. It is a combination of letters and numbers provided to both the recipient and sender for reference. 
 

Important Things To Know About IMPS 

Before engaging in IMPS transfer, knowing important things about it is essential. FRead below to gain knowledge about them:

●    The minimum amount that can be transferred through IMPS is Rs 2 lakhs per transaction, while the minimum is Rs 1. 
●    IMPS transactions offer the utmost safety and security as their access requires a transaction password and secure login. 
●    The charges of IMPS might vary from one bank to another depending on the type of transfer.
●    Every IMPS transaction comes with a unique reference number for tracking purposes.
 

List of Banks Offering IMPS Money Transfer in India? 

Most Indian banks offer IMPS for money transfers. A list of some major banks is given below:

●    Axis Bank
●    ICICI Bank
●    HDFC Bank
●    State Bank of India
●    Punjab National Bank
●    Indian Bank
●    Union Bank of India
●    Federal Bank
●    Stamdard Chartered Bank
●    IDBank
●    Kotak Mahindra Bank
●    Bank of India
●    Yes Bank
●    Standard Chartered Bank

To know whether your bank offers IMPS transactions, talk to the executives or visit your nearest branch.
 

To sum up, IMPS has become a game changer in the oeuvre of the banking system in India. It will continue to make payments more efficient with new technologies and high-end security.

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Frequently Asked Questions

The full form of MMID is Mobile Money Identifier, a 7-digit number used to identify an Indian mobile money account. It is used in the oeuvre of mobile banking and helps customers transfer funds through mobile. To enable this service, a customer must possess an active mobile banking account with the respective bank and their mYou shouldered with the bank. With the completion of the registration, the MMID is generated, which offers convenient money transfer facilities to the account holder. 

The process of generating MMID is extremely easy. All you need to do is follow some simple steps which are mentioned below:

●    Ensure the mobile number is registered with your mobile banking services or bank.
●    Log in to your banking website or into your mobile app
●    Select MMID generating option and select the bank account for which you want to generate the MMID.
●    Your MMID will be instantly displayed on the screen and sent to you by the bank via SMS. 
●    Save it in your phone or note it down.

You can also visit your respective bank branch and request them to generate MMID for you. 
 

Yes, IMPS transfer ensures the utmost safety and security. NPCI manages and makes transactions using advanced and top-notch encrypted technology to prevent transactions from phishers and phishers. Moreover, for IMPS transactions, the user must also authenticate the transaction using a PIN to OTP, which ensures that only the owner can engage in transactions of money from their account. 
 

No, UPI and IMPS are not the same as they are two entirely different payment systems developed by NPCI (National Payments Corporation of India) to offer convenient electronic payment systems in India. The main difference is that UPI uses a virtual payment address to transfer funds instantly without the recipient's account details. On the other hand, to avail of IMPS service, it is essential to have the account number and IFSC code of the recipient's bank account. 
 

Some banks offer IMPS transactions free of charge through Internet banking, and if initiated at the bank’s branch, some transaction fees might be involved. The transaction fees differ from one bank to another based on the transfer amount and transfer mode. Some banks often provide their value-added customers with unlimited IMPS transactions on a nominal flat fee. 
 

IMPS transactions are carried out in real-time, meaning the fund's transfer occurs instantly between the recipient’s bank account and the transferer’s. 
 

Yes, different banks might entertain different transaction fees for IMPS. Several factors affect the transaction amount, such as mode of transfer like mobile banking, ATM, or internet banking, and amount of transaction among many more. Most of the Bank IMPS transactions are free; others might charge a nominal fee. One can find the fee structure list for IMPS on the bank’s official website. 
 

Yes, IMPS services can be availed yearly and around the clock. This also includes holidays and weekends. However, it is essential to remember that there may be some maintenance windows during which IMPS services become temporarily unavailable. The best way to avoid any inconvenience in IMPS services is to talk with your nearest bank branch to know about the availability of their services in detail. 
 

Considering the transaction fees involved in IMPS and NEFT, NEFT is more affordable than IMPS. This is primarily because most banks provide free NEFT services for transactions initiated online through net banking. On the other hand, if a person intends to avail of NEFT services at the nearest branch, some transaction fees might be involved.  However, the transaction fee of IMPS is generally charged based on the transaction amount while both being secured and reliable payment methods. 
 

No, the IMPS service can’t be available offline as the system is an online process which assists customers in transferring funds instantly and with the utmost safety. The main reason why it can’t be available online is that the transaction must be initiated electronically through the medium of a participant’s bank account, an ATM supporting IMPS transaction or a net banking app. 
 

The National Payments Corporation Of India manages the IMPS payment gateway. The Reserve Bank Of India established this non-profit organisation to create an efficient and effective infrastructure for successful payments in the country. Among various other payment systems managed by the National Payments Corporation of India, IMPS is one. 
 

As a customer, ensuring a safe and secure transaction through IMPS is important. Below are some key precautions that might benefit:

●    Use a secured internet connection during IMPS transactions. 
●    Never use unsecured networks or public Wi-Fi that can be compromised easily.
●    Ensure the recipient’s details, including the account number and IFSC code, are verified before making the transaction.
●    Setting a transaction limit often proves helpful for customers to avoid unauthorised transactions. 
●    Ensure that your device is secured and password protected. Also, make sure that your password isn’t shared with anyone. 
 

As the processing of IMPS is done instantly, they cannot be cancelled or refunded instantly after being initiated. Although in case of any fraudulent, failed or erroneous transactions, a refund can be done. To get a refund, customers must contact their nearest bank branch or the bank’s customer care to initiate the refund.