The full form of IMPS is Immediate Payment Service. This facility has provided robust, instant and safe transfer of funds in real time since its inception. The process of interbank transactions was limited in its scope and speed pre-2010. That’s when a new facility called IMPS was launched at the end of the year 2010 by the RBI.
This was due to the fact that NEFT (National Electronic Fund Transfer) and RTGS (Real-time gross settlement) were restricted to banking hours. Transferring funds outside these timings was not possible.
Thanks to this innovation, you can now send funds securely and instantly to bank accounts using multiple channels like SMS, ATM, net banking and mobile applications. You can use this interbank electronic transfer service even on bank or national holidays and weekends.
Most central banks as well as private and public banks in India offer IMPS, which is especially useful during emergencies, and is offered at zero or minimal charges.
Now that you know the full form of IMPS, keep the maximum limit you can transfer via IMPS in mind. While there is no cap on the minimum amount, you can transfer a maximum amount of up to ₹2 Lakhs per transaction.
The features and benefits of IMPS which makes it a popular mode of fund transfer are mentioned below:
Staying true to its name, IMPS allows you to transfer funds in an instant. This is because IMPS transactions occur individually and not in batches. You can avail IMPS via online banking, mobile phone, ATM, or SMS.
IMPS is available 24x7 throughout the year, even on bank holidays. You can use the service to transfer funds anytime and from anywhere.
Both you and the beneficiary are notified when the amount is debited from one bank account and credited to the other. As a result, you do not need to worry about whether the transaction was successful or not.
IMPS can be carried out both person to person and person to merchant. All you need is the mobile number or the bank account details.
IMPS is carried out over encrypted servers, making the transfer of funds safe and secure. Payments occur electronically using multi-step verification.
It saves time and effort as it does not require you to fill up lengthy forms with confidential information. All you need is the beneficiary’s name, mobile number, and MMID. Alternatively, you can transfer funds via IMPS using just the beneficiary account number and IFSC Code.
Along with immediate transfer of funds, IMPS also allows you to pay insurance premiums, utility bills, ticket charges, fees, online purchases, etc.
Banks charge online a minimal amount for availing IMPS facility. In some cases, these minimal charges too are waived off for transactions. As a result, it is one of the most cost-efficient means of transferring funds.
If you wish to use IMPS mobile banking to send money, you will need to use the MMID (Mobile Money Identifier) and an MPIN to get registered. MMID is a unique seven-digit code linked to your mobile number that is generated once. You would also need to enter the IMPS beneficiary details that include the beneficiary’s mobile number and MMID.
For fund transfer, you can also use a combination of the IMPS account number and IFS Code or mobile number and MMID. Both yours and the beneficiary’s details will be required for the purpose. If you are using an ATM to avail IMPS, you would need to authenticate using your ATM PIN.
Once you complete an IMPS transaction by authenticating the payment, the bank provides you with a 12-digit number that is displayed on the screen. This is known as the IMPS reference number. You can find the number on your bank account statement too against the IMPS transaction ID.
Apart from IMPS. You can also use RTGS or NEFT to transfer money from one account to another. Know about the difference between IMPS vs NEFT vs RTGS and select the mode that suits you best!
Before you choose IMPS as your preferred mode of point, there are a few things you need to keep in mind. They are as follows:
For the transfer of funds quickly and efficiently using your phone, IMPS requires you have a mobile banking account. You need to download your bank’s application on your phone and link your account with it to be able to send and receive money.
Once you make a transaction using IMPS, you cannot reverse it. As a result, it is critical that you check and recheck the details entered before submitting the payment request. If you mistakenly transfer the money to the incorrect account and are unable to convince the beneficiary to return your money, your funds will be lost.
You must have a stable internet connection to avail IMPS fund transfer via mobile banking. Slow or interrupted connectivity can cause lags and you might mistakenly submit fund transfer requests more than once.
Now that you’re aware of the meaning of IMPS, its features, and benefits, let’s take a quick look at what you can use IMPS for.
It can be used to instantly transfer funds to other bank accounts
Bank account holders can receive payments from other individuals using IMPS
It can be used to make payments to merchants for the goods or services provided by them
It can be used to check the Aadhaar and bank account linking status
It can be used to perform financial transactions via mobile banking
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IMPS, short for Immediate Payment Service, is a payment service to transfer funds instantly from one bank account to another or to RBI-authorised PPIs. The service is available round the clock, including on bank holidays. You can avail of IMPS transfers through online banking, mobile app, ATM, or SMS.
The IMPS full form in banking parlance is Immediate Payment Service.
IMPS is available 24x7, including on bank holidays. It can be availed via online banking, mobile phone, ATM, or SMS. You can use it to transfer funds instantly in a safe and secure manner.
Yes. Depending on the bank with which you have an account with, the charges for IMPS fund transfers may vary.
There’s no separate registration for availing the IMPS fund transfer facility. You would only have to register for the internet banking or mobile banking service with your bank to avail the IMPS service.
Yes. IMPS is available 24x7, which means that you can effect fund transfers using this service even on the weekends and other bank holidays.
IMPS fund transfers are instant, which means that the funds get transferred to the recipient’s account as soon as the transaction is completed.
In the case of a failed IMPS funds transfer, the amount should automatically get refunded to your bank account. If it doesn’t get automatically refunded, you can contact the bank’s customer service cell for more assistance. However, if the transaction was successful and the amount is already credited to the recipient’s bank account, you cannot initiate a request for refund of the same.
Yes. You can avail the IMPS fund transfer facility through your bank’s mobile banking portal or application. However, to do so, you would have to first register yourself for the mobile banking facility offered by your bank.
There are two fund transfer services available under IMPS - IMPS using mobile number and MMID (Mobile Money Identifier) and IMPS using account number and IFSC. The former is a person-to-person fund transfer service, while the latter is a person-to-bank account fund transfer service.
No. The IMPS fund transfer facility is restricted to bank accounts within India only. You cannot electronically transfer funds to foreign bank accounts using the IMPS service.