IMPS refers to Immediate Payment Service. It is a real time inter-bank fund transfer offered by NPCI (National Payments Corporation of India). Initially, there were only four banks participated in this system. They are SBI, ICICI, BOI and UBI. And now, most of the leading banks are joined in this system.
Though NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement) are being used for fund transfer across banking industry, it has its own limitations. The transfer timings of NEFT and RTGS are restricted as it can be used only on working hours. The transaction in NEFT can be done only batch wise with limited number of settlements. Its processing time is slower than RTGS and it is done through electronic messages. The RTGS transactions are processed on real time. In RTGS, though the transaction is done within half an hour, it also has some drawbacks.
Unlike RTGS and NEFT, the Immediate Payment Serviceworks all the time. IMPS is available even on Sundays and public holidays. By using a mobile application of the respective bank, one can do transfer at anytime. The sender can also transfer money through internet banking and ATM. It works with GSM services such as SMS, USSD.
Just simply with the account number and the IFSC code, one can send and receive money through IMPS. Minimum transaction charges are applied.
For further understanding read NEFT vs RTGS
There is no minimum limit for sending money using IMPS system.
And the maximum limit depends upon the bank we use to transfer money. The amount limit varies with bank to bank. Let’s see the transaction limit of some banks.
HDFC Bank Transaction Limit
The maximum limit of amount could be Rs.2 Lakhs when the account number and IFSC Code are used for transaction.
The transaction limit is lowered to Rs.50000 per Customer ID when the MMID is used. When transfer is done with USSD service, the limit will be further reduced to Rs.1000 per transfer.
ICICI Bank Limit
ICICI bank has a maximum limit of Rs.2 Lakhs for each transfer done with account number and IFSC code and reduced to Rs.10000 for a transfer using mobile number with MMID.
Indian Bank Limit
Indian bank customers can use IMPS service on their mobile devices to transfer money up to Rs.50000.
For each transaction, a minimum amount will be deducted as a service charge. This transaction charge will differ from bank to bank but mostly similar to NEFT.
IMPS vs NEFT
In IMPS service, the money will be credited to the receiver’s account within some minutes from the transaction initiated by sender. But in NEFT, we must wait for upcoming batch of transaction.
IMPS service is available on 24 x 7 and works on holidays including Sundays. NEFT transfer can be done only on working days.
Customers can use this IMPS service via Mobile, Internet, and ATM.
Also, customers can use IMPS service through USSD channel by just dialing *99# on mobile.
How to transfer using IMPS
To make transaction through mobile app and Internet, a customer need to register his mobile number and email id with the bank (Mobile registration is not mandatory for the transactions through Net banking and ATM).
Using the bank’s mobile application, one can add the receiver’s account details and transfer money with the help of OTP which would be sent to the sender’s registered mobile number. A secret transaction pin known as MPIN is used by the sender for every transaction.
To transfer through net banking, one should have valid user ID and password registered with the bank. Using the user ID and password, one can login to their account and transfer money.
The receiver can send the details such as MMID to remitterwhich can be collected at the respective bank, alternately the receiver can send his Account number and IFSC Code.
Sender can initiate the transfer by entering receiver’s details such as,
- MMID & Mobile Number (OR) Account number & IFSC Code.
- Transaction amount.
Details of the sender such as the MPIN and the login password can be changed manually and hence secured.
Stop Payment facility is not available in this service.Hence, it is an immediate payment system. Once the sender finishes a transaction, the amount will be credited to the receiver’s account immediately. So, one should be cautious when doing IMPS transaction.