IMPS Full Form: Immediate Payment Service

The full form or meaning of IMPS is an Immediate Payment Service.

This is such an advanced technique of transferring money from one bank account to another, Using which people can easily send money to a bank account using their mobile or laptop sitting at home.

It was launched in 2010 by the Indian Government and is facilitated by NPCI (National Payment Corporation of India).

As the name suggests, it completes transactions immediately.

IMPS is an instant real-time inter-bank electronic funds transfer system, through which one can transfer money instantly across India, through mobile, internet and ATMs.

IMPS is not only safe but also economical both in financial and non-financial perspectives.

The services of IMPS are available 24*7 and even on holidays.

How does it work?

• Customers have to register their mobile number for the transaction through mobile.
• The customer gets a Unique Mobile Money Identifier (MMID) and MPIN from the bank, which is a 7-digit number.
• IMPS uses the mobile number or Aadhaar number to connect with a bank account.
• When you send money to anyone using IMPS, it first connects you to your bank account using your mobile number. Unlike NEFT and RTGS, it does not transfer funds directly to the beneficiary’s account. But it first transfers funds from your account to your mobile number.
• Then it transfers that fund from your mobile number to his/her mobile number.
• And at last from beneficiary’s mobile number to his/her account.

The Benefits of IMPS

• You can send money in real-time. The money will be credited in the beneficiary’s account within a few seconds.
• IMPS is safe, secure and cost-effective.
• No minimum amount limit on transactions. You can even transfer Re.1 only with IMPS.
• IMPS is available 24*7 and on holidays also.
• You can make intra bank( transfer of money from one bank to another) as well as interbank( transfer of money within the same bank) payments
• Can be used on a mobile phone, internet banking and even ATMs
• Though IFSC code and the bank account number is generally used for IMPS, however, one can transfer money through IMPS by using MMID, AAdhar number and mobile number also.

Drawbacks of IMPS

Any transaction carried out over internet depends upon the security and robustness of the network; IMPS is generally safe but with no guarantee for human errors- if you remit to an account whose number has been wrongly stated, then recovering the money from that account holder will be difficult or impossible.

What is the difference between IMPS and NEFT?

What is the limit of IMPS?

• There is no limit amount for minimum transfer i.e., you can even transfer Re.1 with IMPS and for maximum limit per transaction is Rs.2 lakhs.
• Multiple transactions may be permissible depending upon your bank and IMPS limits approved.
• Recently, India’s leading private bank ICICI Bank has allowed its customers to transfer up to 1000000 rupees per day through IMPS.

Is there any charge for IMPS?

IMPS charges for fund transfer goes from a minimum of Rs.2.50 to a maximum of Rs.25.

Here is a list of IMPS charges.

• IMPS charges are subject to bank’s policies and they vary accordingly.

IMPS FAQs

Which is the best NEFT or IMPS?

• For smaller amount IMPS is best as it gets credited immediately in real-time and available 24*7 whereas NEFT gets cleared in batches of half an hour and not available on RBI holidays.
• But for a larger amount, NEFT is the better of the IMPS, as NEFT is a more robust system than IMPS. For larger amount i.e., greater than Rs.2 lakh IMPS services cannot be used. Thus one has to use RTGS/NEFT for the transactions of above Rs. 2 lakh.

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