What is IMPS? – Immediate Payment Service

IMPS can transfer your funds through net-banking and mobile banking platforms. Both the processes are explained below:

The process of IMPS transfer through net-banking is as follows – Log into your bank’s net-banking portal; add an IMPS beneficiary by inputting the beneficiary’s account no., account type, IFSC Code, name, and contact details; after your bank confirms that the beneficiary has been included, go to Fund Transfer and then select the beneficiary to whom you want to transfer funds. Once you do that the beneficiary’s account details will appear, enter Amount and Remarks (optional). Verify the payment and your funds will be transferred instantly through IMPS.

The process of IMPS transfer through mobile banking is as follows – Log into your bank’s mobile banking application; add the beneficiary, if not already added (the process of adding a beneficiary has been described above), once the beneficiary is added, click on Send Money/Fund Transfer tab and go to the IMPS option; there enter Beneficiary mobile no., Amount and the beneficiary’s Mobile Money Identifier (MMID). The application will then ask for your Mobile PIN (MPIN) to authenticate the transfer, once you verify your Mobile PIN, your money will be transferred and then the bank will send you a confirmation text message mentioning the transaction no. You can use that transaction no. while giving feedback/for queries and complaints.

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Moreover, to receive money through IMPS, just provide your mobile no. and Mobile Money Identifier (MMID) to the payer, and then the payer will be able to transfer money to you through IMPS. If the payer is paying you through IMPS net-banking, you will have to provide the payer with your account details such as account name, account no., IFSC Code, etc. so that the payer can add you as a beneficiary.

IMPS was a revolutionary fund transfer system when it was launched in 2010. It made payment settlements faster and easier. Below are some features of the Immediate Payment Service system:

• IMPS is one of the fastest and one of the most reliable ways to conduct inter-account money transfers. The Unified Payment Interface (UPI) is also built on this platform.
• Immediate Payment Service (IMPS) is a fast, safe and secure way to send and receive funds.
• IMPS works on both net-banking and mobile platforms and its services are available at all times even on public and bank holidays and bank off-days.
• Money can be sent to any beneficiary through IMPS mobile platform by only providing his/her mobile no. and Mobile Money Identifier (MMID).
• Bank account nos. are not necessarily required for IMPS fund transfer if you are transacting through mobile. Transfer notification is sent by the bank to both the payer and the payee when the transfer is complete.
• The IMPS fund transfer limit currently is Rupees 5 lakh per day. The minimum allowed transaction value in IMPS is Rupees 1.
• To conduct transactions through the IMPS, you shall have to follow the below steps:
• Register for mobile banking or net banking of your bank account.
• If accessing the IMPS fund transfer through mobile banking, you should have the beneficiary’s Mobile Money Identifier (MMID) and your MPIN (Mobile PIN).
• If you are transferring money through IMPS net-banking, you need the payee’s account details such as account name, no., IFSC, etc. to pay the beneficiary.

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Other platforms used for fund transfer in India include National Electronic Fund Transfer (NEFT) and Real-time gross settlement (RTGS). Let’s go through both of these transfer mechanisms in detail to understand how they differ from IMPS:

National Electronic Funds Transfer (NEFT) – NEFT transfers funds between two bank accounts through electronic messages. This transaction happens on a one–to–one basis. Fund transfer through NEFT doesn’t occur on a real-time basis which is unlike RTGS and IMPS. NEFT usually settles transfers in hourly batches during their business hours. In NEFT, 23 settlements occur between 8 A.M. and 6.30 P.M. NEFT fund transfer conducts business on weekdays and the 1^st, 3^rd, and the 5^th Saturday of a calendar month. Additionally, NEFT is managed by the Reserve Bank of India and its transfer mechanism settles payments through net transfer facility in batches.

Real-time Gross Settlement (RTGS) – Through RTGS, funds are transferred between bank accounts on a real-time and gross basis. RTGS transfers funds in real-time, i.e. there isn’t any waiting period while transferring funds. Through RTGS, the transaction is settled as and when it is processed.  RTGS doesn’t bundle your fund transfer settlement with other fund transfers. In RTGS, your funds are not transferred in batches. In the RTGS fund transfer mechanism, your funds are not clubbed with payments of other users. In RTGS, your funds are transferred individually and they end up in your payee’s account. Moreover, RTGS is a dedicated fund transfer tool and is faster than NEFT.  This is why RTGS is preferred for high-value transactions.

Through this mechanism, RTGS transactions are processed within RTGS business hours. RTGS funds are usually credited to payee’s accounts within half an hour. The RTGS window is open from 9 a.m. to 4.30 p.m. on weekdays and 9 a.m. to 2 p.m. on Saturdays. Sundays, bank holidays, and bank-off days are not included in RTGS business hours.

If you need to transfer funds through RTGS and NEFT, then you need the payee’s account no., IFSC code, bank branch, beneficiary’s name, and the amount of money that has to be transferred. The minimum transaction limit of RTGS and NEFT usually is Re. 1. Additionally, the maximum limit for NEFT and RTGS transfer mechanisms depends on each bank. As aforementioned, the minimum transfer limit of IMPS is Re. 1 and the maximum limit of funds can go up to Rupees 5 lakh in a day.

NEFT, RTGS, and IMPS transactional charges vary from bank to bank. NEFT charges can be as low as Re. 1 and as high as Rupees 25, depending upon the channel of your NEFT transaction. RTGS transactions too have charged as low as Rupees 25 and as high as Rupees 55. GST may also be applicable on these transfers. If an RTGS transfer is carried out outside business hours, additional charges may be applied.

For IMPS, the minimum transactional charges usually are Rupees 5 and maximum charges can go up to Rupees 15. Moreover, these charges may vary from bank to bank. Moreover, there can be an additional service tax chargeable with IMPS.

List of the name of banks which offer IMPS service in India

The major banks which are offering IMPS services as of date are:

1. Andhra Bank,
2. Allahabad Bank,
3. Adarsh Co-operative Bank Ltd.,
4. Axis Bank,
5. Bandhan Bank Ltd.,
6. Bank of India,
7. Bank of Baroda,
8. Bassein Catholic Co-op Bank,
9. Bank of Maharashtra,
10. Canara Bank,
11. BNP Paribas,
12. Central Bank of India,
13. Catholic Syrian Bank,
14. City Union Bank,
15. Citibank,
16. Cosmos Co-operative Bank,
17. Corporation Bank,
18. Development Bank of Singapore,
19. Dena Bank,
20. Dhanalakshmi Bank,
21. Development Credit Bank,
22. Federal Bank,
23. Dombivli Nagarik Sahakari Bank,
24. HSBC,
25. HDFC Bank,
26. IDBI Bank,
27. ICICI Bank,
28. Indian Overseas Bank,
29. Indian Bank,
30. ING Vysya Bank,
31. IndusInd Bank,
32. Janata Sahakari Bank, Pune,
33. Jammu & Kashmir Bank,
34. Karur Vysya Bank,
35. Karnataka Bank,
36. Kerala Gramin Bank,
37. Lakshmi Vilas Bank,
38. Kotak Mahindra Bank,
39. Nainital Bank,
40. Mehsana Urban Co-operative Bank,
41. NKGSB Co-operative Bank,
42. Pragathi Krishna Gramin Bank,
43. Oriental Bank of Commerce,
44. Punjab and Sind Bank,
45. Punjab and Maharashtra Co-op Bank,
46. Rajkot Nagrik Sahkari Bank Ltd,
47. Punjab National Bank,
48. Saraswat Bank,
49. RBL Bank,
50. Standard Chartered Bank,
51. South Indian Bank,
52. State Bank of India,
53. Syndicate Bank,
54. Thane Janata Sahakari Bank,
55. Tamilnad Mercantile Bank,
56. The A.P Mahesh Urban Co-op Bank,
57. UCO Bank,
58. The Greater Bombay Co-op Bank,
59. Union Bank of India,
60. Vijaya Bank,
61. United Bank of India and
62. Yes Bank.

This list is subject to change.

Which one is better IMPS, NEFT or RTGS?

Every fund transfer system is designed keeping specific requirements of users in mind. IMPS enables fund transfer instantly using just your mobile number and MMID whereas NEFT allows you to transfer funds of any amount 24×7. RTGS allows you to transfer funds above Rs. 2 Lakh in real-time.

What is the limit of IMPS transfer?

According to NPCI circular, the maximum amount that can be transferred is Rs. 2 lakh per transaction. However, the maximum daily withdrawal limit is capped at Rs. 5 lakh.

How many times can we use IMPS in a day?

IMPS services can be availed 24×7. There is no limit on the number of IMPS transactions carried out per day.

Can we reverse an immediate payment?

Before releasing the payment, you have an opportunity to check the details of the payment. Once you have made the payment, it cannot be stopped or reversed.

What happens if I transfer money to the wrong bank account?

In such a case, you need to inform your bank and ask your bank to take an immediate action. If the account number mentioned by you doesn’t exist, the money will automatically be transferred in your account.

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