Immediate Payment Service (IMPS) stands as a swift conduit facilitated by banks, facilitating instant fund transfers between bank accounts. The key players in IMPS transactions encompass the sender, receiver (or beneficiary), banks, and the National Payments Corporation of India (NPCI).

Recent directives from governmental authorities delineate a daily IMPS threshold, currently fixed at Rs. 5 lakh per day. This discourse comprehensively addresses the realm of Immediate Payment Service (IMPS), encapsulating facets such as IMPS tariffs, constraints, schedules, eligibility criteria, and more.

More about IMPS?

IMPS, also known as Immediate Payment Service, offers a digital platform for rapid money transfers, enabling instant transactions between bank accounts. To utilize this service, both the sender and the recipient must hold bank accounts and register for IMPS services through their respective banks. Access to IMPS is facilitated by banks through a range of channels, including branches, net banking, and mobile banking apps.

IMPS Daily Limit Update

The Reserve Bank of India (RBI) used to allow up to Rs. 2 lakh per day for IMPS transactions. But with more people using this system, the RBI has bumped up the daily limit to Rs. 5 lakh per day.

IMPS Transaction Fees

IMPS enables swift fund transfers from sender to receiver, but banks usually apply an extra charge for this service. The additional fee varies based on the transaction amount. Refer to the table below for the breakdown of IMPS transaction charges:

Transfer Amount	Charges
Up to Rs. 10,000	Rs. 2.50 plus GST
From Rs. 10,001 to Rs. 1 lakh	Rs. 5 plus GST
From Rs. 1 lakh to Rs. 2 lakh	Rs. 15 plus GST
Rs. 2 lakh and above	Rs. 20 plus GST

The precise fee may differ among various banks. The table provides estimated IMPS charges.

IMPS Transfer Timing

IMPS transfer service operates round the clock, accessible to all bank account holders. Funds typically reach the beneficiary instantly upon approval of the transaction by the sender’s bank. However, in exceptional instances, such as transaction failure or timeout, it may take up to 5 working days for resolution.

Advantages of IMPS

The advantages of utilizing IMPS for instant money transfers are outlined below:

1. Available 24/7
2. Swift fund transfer
3. Cost-efficient
4. Accessible via mobile banking, net banking, and ATMs
5. Secure and safe

IMPS Qualifications

As per NPCI guidelines, both the sender and receiver must possess a bank account linked to a registered mobile number and MMID to conduct transactions via IMPS. Additionally, entering the IFSC code, bank account number, and transaction amount is required to initiate a transfer.

How to Send Money via IMPS?

Bank account holders can utilize this service through multiple channels. Here are some of the most common methods to transfer money through IMPS:

Online Banking

If you have access to your bank’s online banking platform, you can initiate IMPS transfers by logging into your account. Upon signing in, navigate to the IMPS option, usually located within the money transfer section. Input the receiver’s account number, IFSC code, name, etc., and authorize the transaction. Following a successful transfer, you’ll receive a confirmation SMS and email from your bank.

Phone Banking

Many leading banks permit their account holders to conduct IMPS transactions via mobile banking apps. Simply navigate to the IMPS transaction feature, choose the payee, input the amount, and authorize the transaction.

USSD

For those without internet access, you can initiate an IMPS transaction by dialing *99# from your phone’s dialer. This method proves invaluable when internet connectivity isn’t available yet you need to transfer money. Once dialed, follow the step-by-step instructions to input the necessary details such as the IFSC code, account number or MMID, transfer amount, etc. Complete the transaction by entering your MPIN when prompted.

Monitoring IMPS Transactions

Keep tabs on your IMPS transactions effortlessly by utilizing the Transaction ID or Retrieval Reference Number (RRN), a unique 12-digit identifier generated post-transaction. Whether you’ve conducted the transaction via net banking or mobile banking, you can track its progress through your respective account. Typically, your bank will send email and SMS confirmations once the amount successfully lands in the beneficiary’s account.

IMPS Participating Banks

Refer to the list below for banks extending IMPS facilities to their customers:

List of Banks Providing IMPS Facility
Bank of Maharashtra	Bandhan Bank Limited	IDBI Bank	Jammu And Kashmir Bank	Karnataka Bank
HSBC Bank	City Union Bank	Dhanalakshmi Bank	Axis Bank	IDFC Bank
Development Bank of Singapore	Central Bank of India	Fino Payments Bank	Bank of Baroda	Catholic Syrian Bank
Emirates NBD Bank (P J S C)	Federal Bank	Bank of Bahrain and Kuwait B.S.C	Kotak Mahindra Bank	Ratnakar Bank
Punjab and Sind Bank	Barclays Bank	HDFC Bank	Indian Overseas Bank	State Bank of India
IndusInd Bank	ICICI Bank	Yes Bank Ltd	UCO Bank	Paytm Payments Bank
Union Bank Of India	Karur Vysya Bank	South Indian Bank	Airtel Payments Bank Ltd.	SBM Bank (India) Limited
Bank of America	The Rayat Sevak Co-Operative Bank Limited	NSDL Payments Bank Ltd	The Goa Urban Co-Operative Bank Ltd.	Standard Chartered Bank
DCB Bank Ltd.	Citi Bank	Punjab National Bank	Sri Satya Sai Nagrik Sahakari Bank, MYDT	Tirumala Co-Operative Urban Bank Ltd
Ramrajya Sahakari Bank Ltd	Tamilnad Mercantile Bank	India Post Payments Bank Limited	Credit Agricole Corporate & Investment Bank	Khardah Cooperative Bank Ltd
Canara Bank	Bank of India	Shinhan Bank	BNP Paribas	Indian Bank

 

Considerations When Using IMPS

IMPS stands out as an excellent electronic fund transfer system, offering secure and speedy transactions. However, a minor oversight could result in fund loss. Here are key factors to keep in mind when utilizing a bank’s IMPS service:

• Ensure you possess the receiver’s account number, IFSC code, name, and their registered mobile number for initiating an IMPS transfer.
• For transfers using MMID, both you and the receiver must be registered for mobile banking services with any bank. MMID acquisition is impossible without this registration, crucial for IMPS transactions.
• As the sender, double or triple-check account details, IFSC code, etc., to confirm accuracy before proceeding with the transfer.
• A stable internet connection is vital for online IMPS transactions to prevent payment failures and request time-out errors.
• In the event of transferring funds to an incorrect account, retrieval becomes challenging if the receiver refuses to return the funds. Thus, exercise utmost caution when inputting receiver details.

Armed with these insights into various facets of IMPS, you can confidently utilize the IMPS facility for seamless transactions while alleviating any concerns or uncertainties.

Frequently Asked Questions

• What is IMPS and how does it work?

IMPS, or Immediate Payment Service, is an electronic funds transfer system that enables instant transfer of money between bank accounts. It works by facilitating real-time transactions, allowing funds to be transferred instantly from the sender’s bank account to the recipient’s bank account.

• How can I register for IMPS services with my bank?

You can register for IMPS services with your bank by visiting your bank’s branch or through their online banking portal. You may need to fill out a registration form and provide necessary identification documents. Once registered, you can start using IMPS for instant money transfers.

• What are the transaction limits for IMPS transfers?

Transaction limits for IMPS transfers vary depending on the bank and account type. However, the Reserve Bank of India (RBI) has set a maximum limit of Rs. 5 lakh per day for IMPS transactions.

• What fees are associated with IMPS transactions?

Banks may charge nominal fees for IMPS transactions, which can vary depending on the bank and the transaction amount. It’s advisable to check with your bank for specific fee details related to IMPS transfers.