What is IMPS?
Immediate Payment Service (IMPS) is a real-time interbank electronic funds transfer system in India. Launched by the National Payments Corporation of India (NPCI) in 2010, IMPS enables customers to send and receive money instantly, any day of the year. Unlike traditional bank transfers, which may take hours or days, IMPS payments are credited to the beneficiary’s account within seconds, making it ideal for urgent transfers.
How Does IMPS Work?
- Initiation: The sender logs into their bank’s IMPS-enabled channel (mobile app, internet banking, ATM, or SMS).
- Beneficiary Details: They provide either the beneficiary’s MMID and mobile number or the bank account number and IFSC code.
- Authentication: The sender authorizes the transaction using an OTP, PIN, or biometric (depending on channel).
- NPCI Switch: The request is routed through the NPCI IMPS switch, which authenticates and validates details.
- Credit: Upon approval, the beneficiary’s bank account is credited almost instantly, and both parties receive confirmation messages.
Types of IMPS
- Mobile Banking IMPS: Uses MMID (Mobile Money Identifier) and registered mobile number.
- Internet Banking IMPS: Uses beneficiary’s account number and IFSC code.
- ATM IMPS: Enables IMPS transactions via bank ATMs.
- SMS Banking IMPS: Allows transfers by sending a formatted SMS to the bank’s service number.
Feature of IMPS
Real-Time Settlement: Funds transfer instantly.
- 24×7 Availability: Works on weekdays, weekends, and bank holidays.
- Secure Transactions: Encrypted and authenticated through bank’s secure channels.
- Universal Reach: Available across all IMPS-participating banks in India.
- Immediate Confirmation: Both sender and beneficiary get instant SMS alerts.
Benefits of IMPS
- Speed: Transfers complete within seconds.
- Convenience: Accessible anytime via multiple channels.
- Cost-Effective: Lower charges compared to NEFT/RTGS for small amounts.
- Reduced Cash Dependence: Encourages digital payments.
- Transparency: Instant notifications and transaction tracking.
Uses of IMPS
- Person-to-Person Transfers: Quickly send money to family or friends.
- Merchant Payments: Pay small vendors and merchants instantly.
- Bill Payments: Settle utility bills or credit card dues.
- Mobile Recharges: Top up prepaid mobile or DTH accounts.
- Emergency Funds: Transfer money immediately in urgent situations.
Examples of IMPS
- State Bank of India YONO App: Instant fund transfers to any bank in India.
- HDFC MobileBanking: Send money with just account and IFSC or MMID.
- Axis Mobile: Secure IMPS transfers with beneficiary confirmation.
- ICICI Pockets: IMPS transfers using virtual payment address (VPA).
IMPS Requirements
- Active Bank Account: With an IMPS-enabled bank.
- Registered Mobile Number: Linked to the bank account.
- MMID & MPIN (for mobile banking IMPS).
- Beneficiary Details: MMID & mobile number OR account number & IFSC code.
- Internet or SMS Access: Depending on chosen channel.
How to Do IMPS Online?
- Log In: Access net banking or mobile banking app.
- Navigate to Fund Transfer: Select “IMPS” as the transfer mode.
- Add Beneficiary: Provide required details (MMID or account + IFSC).
- Enter Amount: Specify how much you want to send.
- Authenticate: Verify with OTP, MPIN, or biometric.
- Confirm: Review details and submit. You will get an instant confirmation.
How to Do IMPS Offline?
ATM:
- Insert your debit card and enter PIN.
- Choose “IMPS” from the menu.
- Enter beneficiary account, IFSC, and amount.
- Authenticate and confirm funds transfer immediately.
SMS Banking:
- Send an SMS in the format: IMPS <YourMMID> <BeneficiaryMMID> <Amount>.
- You will receive an OTP; reply with the OTP.
- On success, both parties get SMS confirmations.
What are IMPS Timings?
IMPS is available 24 hours a day, 7 days a week, 365 days a year, including Sundays and bank holidays.
What is IMPS Limit?
- Per Transaction Limit: Typically, up to ₹2,00,000 (₹2 lakh).
- Daily Limit: Varies by bank, often ₹2 lakh to ₹5 lakh.
- Minimum Transfer: ₹1.
Always check with your bank for its specific per-transaction and daily limits.
What are IMPS Charges?
Banks can levy nominal fees, subject to NPCI guidelines:
- Transactions up to ₹1,00,000: Usually ₹2.50 to ₹5 per transaction.
- Transactions ₹1,00,000 to ₹2,00,000: Around ₹10 to ₹15 per transaction.
Many banks waive IMPS charges for savings account holders or on specific digital channels confirm with your bank’s latest tariff schedule.
How much time does it take for IMPS Transactions to Settle?
Under normal conditions, IMPS transfers settle within a few seconds. Both sender and beneficiary receive confirmation SMS almost immediately after processing.
Factors Affecting IMPS Settlement Time
- Network Congestion: High transaction volume may cause slight delays.
- Bank Server Downtime: Scheduled maintenance can affect availability.
- Incorrect Details: Mistyped MMID/account or IFSC code will cause failure.
- System Glitches: Rare technical issues at NPCI or bank end.
Challenges of IMPS
- Transaction Failures: Due to wrong beneficiary details or network issues.
- Limited Transaction Amount: For very large transfers, NEFT/RTGS may be needed.
- Bank-Specific Variations: Different limits and charges across banks.
- Security Risks: Phishing or fraud if you share MPIN or OTP.
- User Awareness: Some customers may not be familiar with MMID or SMS format.
Components of IMPS
- NPCI IMPS Switch: Central processor that routes and authenticates transfer requests.
- Sponsor Bank: Participating bank that sends and receives funds.
- Remitting Bank: The sender’s bank initiating the transaction.
- Beneficiary Bank: The receiving bank crediting the funds.
- Channels: Mobile Banking (MMID/MPIN), Internet Banking (Account + IFSC), ATMs, and SMS Banking.
- Settlement & Reconciliation Engine: Ensures accuracy and final settlement among banks.