IMPS Meaning in Banking: How to Do it, Timing, Charges & Limits

In the last decade, the banking sector in India has evolved by leaps and bounds. Gone are the days when sending and receiving money involved long, cumbersome processes, not to mention the long wait to receive credits. Today, you can transfer funds in seconds, and your beneficiaries can receive them instantly.

Thus, you can initiate a quick online fund transfer if you need to send money to your loved ones during emergencies or pay for your utilities, groceries, and more. One such revolutionary mode of online payment is IMPS.

Let us find out what IMPS meaning and transfer are and the many ways in which you can initiate them.

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IMPS Meaning and Full Form

IMPS stands for Immediate Payment Service (IMPS), which is used in the Indian banking system to move money from one bank account to another. When only NEFT and RTGS facilities were available in India, the system facilitated real-time, interbank electronic money transactions 24 hours a day, 7 days a week.

Must Read: RTGS Meaning in Banking: How to Do it, Timing, Charges & Limits

Multiple methods, including SMS, the Internet, ATMs, and mobile phones, allowed users to utilize the facility. It is supported by the Reserve Bank of India, operated by NPCI (National Payments Corporation of India), and built on the National Financial Switch (NFS) (RBI). NPCI launched IMPS as a test program in 2012.

Top Features of IMPS

IMPS (Immediate Payment Service) is a widely used and dependable method for digital money transfers, valued for its speed, security, and user-friendly access. Below are its key features:

Instant Transfers: IMPS ensures that funds are transferred in real-time, crediting the recipient's account instantly, making it faster than other transfer methods.
24/7 Availability: IMPS is accessible at any time, including weekends and holidays, offering users the flexibility to make transfers whenever needed.
User-Friendly Access: IMPS is compatible with various platforms such as mobile apps, internet banking, and ATMs, ensuring a seamless experience across different devices.
Daily Transaction Limit: IMPS supports high-value transactions, making it suitable for both personal and business payments, with a daily transaction limit.
Secure Transactions: IMPS prioritises the security of fund transfers by using One-Time Passwords (OTPs) and encrypted authentication, ensuring the safety of your transactions.

Top Advantages of IMPS

The following are the advantages of IMPS for consumers and give us the best understanding of imps meaning:

The MMID, Aadhaar number, and cellphone number can all be used to transfer funds.
The Debit and Credit Confirmation are provided to you using IMPS instantly via SMS.
The funds will be credited to the beneficiary's account via IMPS in seconds.
IMPS is risk-free, cost-efficient, and secure.
There is no minimum transaction threshold for IMPS.
Even on weekends and holidays, IMPS is available.
The customer can make both intrabank and interbank payments.
Mobile phones, internet banking, and even ATMs all support IMPS.
It is optional to be aware of the beneficiary's account number and IFSC while using IMPS.

How to do IMPS?

For IMPS, you’ll need a savings account, a cellphone number or an Aadhaar number. When money is sent between bank accounts using IMPS, your mobile phone is used first to establish a connection between you and your bank account. Unlike NEFT and RTGS, IMPS does not instantaneously transfer money to the beneficiary's account. Your account is used to transmit the funds to your mobile number. The money is transferred from the recipient's mobile number to the corresponding mobile number. Finally, the beneficiary's account is reached from their cellphone number.

To complete an IMPS transaction, pick one of the available modes from the list below:

Sign up for mobile banking to conduct an IMPS transaction through your bank's mobile app. After successfully registering, you can launch the app and send money to someone else.

Internet Banking: Sign up with your bank for the Internet banking service so you may access the page and begin sending money.

Must Read: E-Banking: Advantages, Disadvantages & Importance

ATM: You can perform the money transfer at the closest ATM of your bank if you are not registered for mobile banking or Internet banking services. Along with features like checking account balances and cash withdrawals, ATMs can start an IMPS transaction.

IMPS Charges

There is a specific cost for each IMPS transaction you complete. The fee is determined by the amount being transferred. Additionally, an 18% goods and services tax is applied. The formula for calculating IMPS transaction fees is shown in the table below:

It applies to both the government and banks to facilitate IMPS fees. As a result, there are some unique fees associated with IMPS transactions.

With GST, transfers up to Rs. 10,000 would cost Rs. 2.5.
Transfers between Rs. 10,000 and Rs. 10,00,000 will be charged a GST of Rs. 5.
Transfers between Rs. 10,00,000 and Rs. 20,00,000 will be charged a GST fee of Rs. 15.

IMPS timings and limits

IMPS is normally available around-the-clock. When adding a new beneficiary to conduct a new funds transfer, some banks could have timing constraints. Some banks place a time limit on adding beneficiaries in order to facilitate IMPS transfers.

The transaction cap for IMPS transfers is typically set at Rs. 2 lakhs. Banks, however, are free to set their maximum amount for each IMPS transaction. Additionally, the transaction limitations might be strict for the first few days after you add a new beneficiary. Before beginning a transaction, confirm the limit with your bank.

IMPS: Frequently Asked Questions

There are some questions that people have to understand what is IMPS. Here are the answers to some frequently asked questions that need to be cleared for a better understanding of this money transfer procedure.

How to check IMPS status?

Checking the status of an IMPS fund transfer status is as simple as it is to complete an IMPS transaction. However, it is only possible to accomplish this by using the IMPS Reference Number.

Following each IMPS transaction, you would obtain an IMPS reference number from the relevant bank.
You must use your login information to access your net banking or mobile banking account.
Find the 'Payments & Transfer' option and click it on the next screen.
Next, select "Transaction status" and then "View Completed Transactions" from the menu that appears.
If you follow the instructions above, checking the status of any recent transaction you've made using the IMPS fund transfer system will be simple.

How to track IMPS transactions?

Tracking your IMPS reference number is an easy way to determine the specifics of your most recent transaction. To verify your IMPS transaction's status, connect to your net banking or mobile banking account. Using the distinct IMPS reference number, the bank provides following each successful IMPS transaction, it is simple to track an IMPS reference number.

You can also track down any IMPS reference numbers or obtain information about your most recent IMPS transaction by calling your bank.

Final Words

You can use this service whenever you want now that you know what IMPS transfer is and how it can be used in various ways. One of the fastest and safest money transfer services is IMPS. Additionally, sending a sizeable sum of money in one transaction is very economical. IMPS provides even more financially inclusive services because people can utilize them without an internet connection. However, we must know that these details are subject to changes in guidelines made by the Reserve Bank of India.

Frequently Asked Questions

There are some questions that people have to understand what is IMPS. Here are the answers to some frequently asked questions that need to be cleared for a better understanding of this money transfer procedure.

What is the IMPS full form in banking?

IMPS stands for Immediate Payment Service, a real-time interbank money transfer system that allows instant and secure transactions between banks.

Does IMPS offer the facility to stop payments on IMPS?

No, IMPS does not offer a facility to stop or reverse payments once the transaction has been processed.

How to Check IMPS Status?

Checking the status of an IMPS fund transfer status is as simple as it is to complete an IMPS transaction. However, it is only possible to accomplish this by using the IMPS Reference Number.

Following each IMPS transaction, you would obtain an IMPS reference number from the relevant bank.
You must use your login information to access your net banking or mobile banking account.
Find the 'Payments & Transfer' option and click it on the next screen.
Next, select "Transaction status" and then "View Completed Transactions" from the menu that appears.

If you follow the instructions above, checking the status of any recent transaction you've made using the IMPS fund transfer system will be simple.

How to Track IMPS Transactions?

Tracking your IMPS reference number is an easy way to determine the specifics of your most recent transaction. To verify the status of your IMPS transaction, connect it to your net banking or mobile banking account. Using the distinct IMPS reference number, the bank provides following each successful IMPS transaction, it is simple to track an IMPS reference number. You can also track down any IMPS reference numbers or obtain information about your most recent IMPS transaction by calling your bank.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

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