IMPS – Full Form, Features, Limits and Charges

In banking, the IMPS full form stands for Immediate Payment Service, which is a payment service used for transferring money instantly. It is facilitated by NPCI (National Payment Corporation of India).

Let us understand ‘what is IMPS?’, its features, transaction limits, and charges in detail. Keep reading!

What is IMPS?

Immediate Payment Service (IMPS) is used for transferring funds from one bank account to another bank account instantly using mobile or online banking. It is available 24x7 and is a highly flexible payment service.

Features of IMPS

Below are the key features of IMPS:

Easy to use: Compared to other electronic funds transfer methods, IMPS is easy to use for quick and simple transactions. Using the mobile application, you can avail of IMPS services from anywhere.
Usage: You can use IMPS for various modes of payment, such as internet shopping, utility bill payments, insurance premiums, transport, etc. Moreover, it can be used for P2M (Person to Merchant) payment.
Flexible: IMPS can be used for transferring funds from any location and at any time. You can use IMPS 24/7, even on bank holidays and public holidays.
Fast payment: With IMPS, you can quickly transfer funds via your mobile phone. Once the sender sends money through IMPS, the receiver receives the money instantly.

How to Transfer Money through IMPS?

You can use either m-banking, internet banking for IMPS. To make an IMPS transfer, you must download the mobile application and follow the below-mentioned steps:

Step 1: Log in to the mobile app using your user ID and password.
Step 2: Tap on “Transfer” and select the other ‘Add beneficiary’.
Step 3: Select ‘IMPS’

For P2P transfer (phone to phone), provide your MMID & mobile number details.

For P2A transfer (phone to account), provide your bank account number & IFSC code.

Step 4: Enter the name, registered mobile number, beneficiary MMID, and the amount to be transferred.

For P2A transfers, provide the account number and IFSC code.

Step 5: Click on ‘Accept & Conditions’ and confirm.

What are IMPS Charges?

IMPS charges depend on the amount of transaction. Usually, it ranges from Rs. 2.50 to Rs. 25 for amounts of Rs. 10,000 to Rs. 5 lakhs. Below is the list of IMPS Charges for several banks in India:

List of Banks	IMPS Charges
AU Small Finance Bank	Rs. 10
Axis Bank	Rs. 2.50 – Rs. 10.00
Bank of Baroda	Rs. 2.50 – Rs. 25.00
Canara Bank	Rs. 5.00 – Rs. 18.00
HDFC Bank	Rs. 3.50 – Rs. 15.00
ICICI Bank	Rs. 3.50 – Rs. 15.00
Kotak Mahindra Bank	No charges
Punjab National Bank	Rs. 6.00 – Rs. 12.00
State Bank of India	No charges

What are the Transaction Limits for IMPS?

The Reserve Bank of India imposed a daily transaction limit on IMPS transactions. Currently, the maximum IMPS limit for daily transactions is Rs. 5 lakhs. However, it might vary from bank to bank. The mimimum amount that can be transferred using IMPS is Rs. 1.

What are the timings for IMPS Services?

Usually, IMPS services are available 24x7 for transactions, but a few banks may have restricted IMPS timings from 8 a.m. to 8 p.m. due to fraudulent activities and theft.

FAQs on IMPS

What are the benefits of IMPS?

IMPS offers several benefits such as:

It is a reliable and fast mode of transferring money online.
It works on both internet banking and mobile platforms.
It requires the receiver’s mobile number and MMID.
IMPS transactions can be performed without bank account numbers.
It can be used for mobile banking transactions, receiving payments, online shopping, paying insurance bills, etc.

What are the things considered before using IMPS Services?

While making an IMPS transaction, you must consider the things mentioned below:

Both parties must have MMID.
If IMPS is done through net banking, you will require details such as bank account number, IFSC code, mobile number of the receiver, name of the receiver, and MMID.
Must have internet connection.