In today’s fast-paced world, sending and receiving money quickly is essential. IMPS is one such banking service that makes instant transfers possible. But what exactly is IMPS, and how does it work? Let’s break down all the important details related to IMPS in this blog.
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What is IMPS in Banking?
IMPS stands for Immediate Payment Service. It is an electronic payment system that allows users to send and receive money instantly, 24/7, including on holidays.
IMPS is a popular and reliable way to transfer funds, offering quick and secure transactions through various channels like mobile banking, internet banking, and ATMs.
Below are the key features of Immediate Payment Service-
- Instant Transfers – Money arrives in seconds.
- 24×7 Availability – Works on weekends & holidays.
- Multi-Channel Access – Mobile, Internet, ATM, SMS, and branches.
- No Beneficiary Approval Needed – Unlike NEFT, no waiting period.
- Secure & Economical – Low fees with RBI-approved security.
How IMPS Works?
IMPS works through a unique Mobile Money Identifier (MMID) and the recipient’s mobile number. The process is simple:
For Sender (Remitter):
- Register for Mobile Banking – Get a Mobile Money Identifier (MMID) and MPIN from your bank.
- Initiate Transfer – Log in via mobile app, internet banking, or ATM.
- Enter Details – Provide the recipient’s mobile number + MMID or account number + IFSC.
- Confirm & Send – Authenticate with MPIN/OTP.
For Receiver (Beneficiary):
- The money is credited within seconds.
- The receiver gets an SMS confirmation.
IMPS can also be done without a bank account, through services like mobile wallets, making it accessible to a wide range of users.
Channels for IMPS Fund Transfer
Immediate Payment Service is a flexible payment system that supports fund transfers through various channels. Whether you’re using a smartphone, computer, ATM, or even SMS, IMPS makes sending money quick and accessible. Here are the main ways to transfer funds using IMPS:
1. Person-to-Person (P2P) – Using Mobile & MMID
- Sender & receiver must register for mobile banking.
- Requires beneficiary’s mobile number + 7-digit MMID.
2. Person-to-Account (P2A) – Using Account & IFSC
- The beneficiary does not need mobile banking registration.
- Requires account number + bank IFSC code.
3. Other Channels (ATM, Internet, SMS)
- ATM: Use debit card + PIN.
- Internet Banking: Login with user ID + password.
- SMS: Some banks allow IMPS via text (check availability).
Also Read: What is VPA in Banking? Know How to Find & Create It
IMPS Limits
The IMPS transaction limits vary depending on the bank:
- Minimum Limit: Some banks set a minimum limit, usually around INR 1.
- Maximum Limit: The maximum amount one can transfer in a single IMPS transaction typically ranges between INR 1 lakh to INR 5 lakh. This depends on the bank’s policy.
IMPS Transaction Limits:
| Channel | Maximum Limit (Approx.) |
| Mobile Banking | INR 2 lakh per transaction |
| Internet Banking | INR 5 lakh per transaction |
(Limits vary by bank. So, check with your bank before transferring large amounts.)
IMPS Transfer Fees
The fees for IMPS transfers are generally lower compared to traditional bank transfers like NEFT. However, banks may charge a nominal fee based on the transfer amount:
- For low-value transfers (under INR 10,000), charges are typically minimal, around INR 5 to INR 10.
- For higher amounts, fees may increase slightly but remain lower than other methods like RTGS.
IMPS Transaction Fees:
| Amount Range | Charges (Approx.) |
| Up to INR 1 lakh | INR 5 + GST |
| INR 1 lakh – INR 2 lakh | INR 15 + GST |
Again, fees vary across different banks. Some banks offer free immediate payment transfers, so always verify charges beforehand and check with your bank to get the most accurate information.
Here is a table summarising the IMPS charges of various banks in India based on recent data from 2024-2025:
| Bank Name | IMPS Charges (Up to INR 1,000) | IMPS Charges (INR 1,001 to INR 1,00,000) | IMPS Charges (Above INR 1,00,000) |
| State Bank of India | Nil | Nil | INR 20 + GST |
| HDFC Bank | INR 3.50 + GST | INR 5 + GST | INR 15 + GST |
| ICICI Bank | INR 2.5 + GST | INR 15 + GST | INR 15 + GST |
| Axis Bank | INR 2.5 + GST | INR 5 + GST | INR 10 + GST |
| Kotak Mahindra Bank | Nil | Nil | Nil |
| Canara Bank | Nil | INR 3 – INR 8 + GST (tiered) | INR 15 – INR 20 + GST (tiered) |
| RBL Bank | INR 5 + GST | INR 15 + GST | INR 15 + GST |
| IndusInd Bank | INR 2.5 + GST | INR 5 + GST | INR 15 + GST |
| Union Bank of India | Nil | INR 2.25 – INR 4.75 + GST (tiered) | INR 14.75 – INR 24.75 + GST (tiered) |
| Bank of Baroda | INR 1 + GST | INR 1.50 – INR 5.50 + GST (tiered) | INR 5.50 + GST |
| Central Bank of India | INR 3 + GST | INR 5 – INR 10 + GST (tiered) | INR 15 + GST |
| Punjab National Bank | Nil | INR 5 + GST | INR 10 + GST |
| Indian Overseas Bank | INR 2.5 + GST | INR 5 + GST | INR 15 + GST |
| Bandhan Bank | INR 5 + GST | INR 15 + GST | INR 15 + GST |
| IDFC First Bank | Nil | Nil | Nil |
| IDBI Bank | Nil | Up to INR 15 + GST | INR 15 + GST |
| Yes Bank | Nil | Up to INR 5 + GST | INR 5 + GST |
| South Indian Bank | Nil | INR 5 + GST | INR 15 – INR 17 + GST (tiered) |
| Federal Bank | INR 2.5 + GST | INR 5 – INR 10 + GST (tiered) | INR 15 + GST |
| Bank of India | Nil | INR 1 – INR 2 + GST (tiered) | INR 3 – INR 5 + GST (tiered) |
Advantages of IMPS
Immediate Payment Service offers several benefits that make it one of the most preferred methods for digital money transfers in India. Its speed, convenience, and round-the-clock availability make it ideal for both personal and business use.
- Instant Transfers: IMPS is known for its speed. Transactions are processed in real-time, ensuring funds reach the recipient within minutes.
- Available 24/7: Unlike traditional banking services, IMPS is available around the clock, even on holidays and weekends.
- Secure: IMPS is a secure system, as it requires authentication through multiple layers, such as MMID and mobile numbers.
- Convenience: IMPS can be used via mobile apps, internet banking, and ATMs, making it a convenient option for users.
- No Need for Bank Account: You can transfer money without having a bank account, especially through mobile wallets and linked services.
Disadvantages of IMPS
While Immediate Payment Service is highly efficient, it comes with a few limitations that users should be aware of. These drawbacks may impact your choice depending on the type and size of your transaction.
- Transfer Limits: IMPS has a relatively low maximum transfer limit compared to other payment systems like RTGS, which may not suit high-value transactions.
- Transaction Fees: Although fees are low, they still apply, especially for higher transfer amounts. Some banks charge for every transaction.
- Bank Dependency: To use IMPS, both sender and receiver must have accounts with banks that support IMPS. Not all banks may support this feature.
- Mobile Number Requirement: Transactions based on mobile numbers may not be suitable for users who do not have their phone number linked to their bank account.
Also Read: What is MPIN in a Bank? Full Form, Meaning, Steps to Generate, Change, & Reset
IMPS vs Other Payment Systems
- IMPS vs NEFT: NEFT (National Electronic Funds Transfer) is available during business hours and takes several hours for transactions to complete. In comparison, IMPS operates 24/7 and provides instant transfers.
- IMPS vs RTGS: RTGS (Real-Time Gross Settlement) is ideal for high-value transfers (above INR 2 lakh), but it is only available during business hours. IMPS, on the other hand, has a lower transfer limit but can be used anytime.
- IMPS vs UPI: UPI (Unified Payments Interface) is another popular payment method for mobile-based transfers, but unlike IMPS, UPI can directly link multiple bank accounts to the app. UPI is also widely used for both peer-to-peer and merchant payments.
IMPS vs. NEFT vs. RTGS vs. UPI
Choosing the right fund transfer method depends on your needs, whether it’s speed, transfer limit, or convenience. Here’s a quick comparison of the most commonly used digital payment systems in India:
| Feature | IMPS | NEFT | RTGS | UPI |
| Full Form | Immediate Payment Service | National Electronic Funds Transfer | Real Time Gross Settlement | Unified Payment Interface |
| Speed | Instant | Takes a few hours | Instant (for INR 2 lakh and above) | Instant |
| Timings | 24×7 | Only during banking hours | Only during banking hours | 24×7 |
| Limit | Up to INR 5 lakh | No specific limit | Minimum INR 2 lakh (no upper cap) | Usually up to INR 1 lakh (varies by bank) |
| Cost | Low fee (varies by bank) | Free or very low charges | Higher fees for large transfers | Mostly free |
Also Read: Difference Between NEFT, RTGS, IMPS: Which One Is Best for You?
Security Tips for IMPS Users
Since Immediate Payment Service involves instant money transfers, it’s crucial to handle it securely. Here are some essential safety tips:
- Never share your MPIN, OTP, or debit card details, even with people you trust.
- Avoid forwarding payment-related SMS or links to unknown numbers or emails.
- Double-check recipient details like mobile number, MMID, account number, and IFSC code before confirming the transaction.
- Report any suspicious activity immediately to your bank’s customer support or fraud helpline.
Keeping these precautions in mind can help you use IMPS safely and confidently.
To sum up, IMPS is an efficient and secure payment system that makes transferring money quick and hassle-free. With its instant processing, 24/7 availability, and low transaction fees, IMPS is an excellent option for individuals and businesses alike.
However, it’s essential to keep in mind its transfer limits and potential fees. For day-to-day transactions or emergency money transfers, IMPS can be a great choice!
Check out the FAQs below for more information.
FAQs
IMPS (Immediate Payment Service) is a real-time payment system that allows users to send and receive money instantly, 24×7, even on holidays. It works through mobile numbers and MMID or by using account numbers and IFSC codes. Once the sender initiates the transaction and confirms with an OTP or MPIN, the money is instantly transferred to the recipient’s account.
IMPS limits vary depending on the bank and channel used:
– Mobile Banking: Up to INR 2 lakh per transaction
– Internet Banking: Up to INR 5 lakh per transaction
Always check with your bank for the exact limit.
No, IMPS transfers are not always free. Most banks charge a small fee depending on the transfer amount. For example:
– Up to INR 1 lakh: Around INR 5 + GST
– INR 1 lakh – INR 2 lakh: Around INR 15 + GST
Some banks may offer free IMPS services, so it’s best to confirm with your bank.
Google Pay uses UPI (Unified Payments Interface), not IMPS. However, UPI is built on the IMPS infrastructure and also allows instant bank-to-bank transfers. So while Google Pay isn’t directly IMPS, it functions with similar speed and convenience.
Some banks set a minimum transfer limit for IMPS, usually around INR 1. However, this can vary by bank, and in many cases, you can transfer even smaller amounts.
– IMPS: Instant transfers, available 24×7 including holidays.
– NEFT: Takes a few hours to process and only works during banking hours.
IMPS is better for urgent, round-the-clock transfers, while NEFT is good for regular payments that aren’t time-sensitive.
The IMPS charge for transferring INR 50,000 is usually around INR 5 to INR 15 + GST, depending on your bank’s policy. Some banks may waive the fee, so check with your branch or online banking portal for exact charges.
Banks sometimes send a INR 1 test credit through IMPS to verify account details before processing a larger transfer. This is usually part of an internal validation process or to confirm beneficiary registration.
Here are a few limitations of IMPS:
– Lower maximum transfer limit compared to RTGS
– Some banks charge transaction fees
– Requires both sender and receiver’s bank to support IMPS
Mobile-based transactions may not suit everyone, especially those without registered phone numbers.
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