IMPS stands for Immediate Payment Service in Indian banking system terminologies. It is a money transfer mechanism made available by the apex bank of the country, the Reserve Bank of India and the National Payments Corporation of India (NPCI). Initiated in 2010 by the NPCI with the help of a pilot project with 4 major banks, IMPS has now grown to 150+ banks.
The major feature of IMPS is that it is available at all times for usage. It transfers funds instantly and is a great banking platform in case of emergencies. The transaction charges of this platform are also very nominal and the transfer limit is also considerable, approximately Rupees 2 lakhs per day. Moreover, IMPS is available on mobile too which makes it super-convenient.
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National Electronic Fund Transfer (NEFT) and RTGS (Real-time gross settlement) transfer mechanisms are only available during their business hours. Moreover, NEFT and RTGS are not available on bank off-days and holidays. However, IMPS scores a point in this regard as it is available 24 x 7.
National Payments Corporation of India (NPCI) is responsible for managing the IMPS fund transfer mechanism. This mechanism is regulated by the Reserve Bank of India. One can define IMPS as an immediate, inter-bank real-time fund transfer mechanism enabled through electronic means.