IMPS Full Form: Meaning, Features, Benefits and How to do IMPS

Rakesh urgently needed money for a medical bill on a Saturday late evening. Banks are closed, it is too late for NEFT, and waiting isn’t an option. He contacted a few friends for help, and within seconds, Rakesh received the amount. How did this happen? The answer: IMPS. Through IMPS, a few taps on the phone can do what once took hours.

But what is IMPS, and how does it work? Let's find out IMPS full form, meaning, types, how it works and more.

What Is IMPS?

IMPS refers to an instant, 24X7, interbank electronic fund transfer service offered by the National Payments Corporation of India (NPCI). It is quite a flexible way for quick fund transfers across channels.

With IMPS, you can transfer money anytime, from anywhere, via any authorised channel, regardless of banking hours or bank holidays.

IMPS Full Form in Banking Explained

IMPS stands for Immediate Payment Service. It is a service through which you can send money from your account to another bank immediately, be it on weekends or holidays.

IMPS was introduced in 2010 by NPCI and RBI for efficient fund transfer between bank accounts. The main purpose of IMPS lies in making electronic remittances user-friendly for customers while also contributing towards the RBI’s vision of driving the adoption of e-payments in retail. 

Also Read - Difference Between IMPS and UPI Fund Transfer

How Does IMPS Work?

Here is a step-wise process of how IMPS works

• Initiation: You log into your bank's app or net banking, select IMPS, and enter beneficiary details and the amount.
• Transaction Request: Once initiated, the transaction request goes through the bank to the NPCI
• Verification: NPCI then checks the sender's account balance and details.

• Routing: The transfer request is promptly forwarded to the beneficiary's bank following verification.
  Money Settlement: After that, funds are transferred from the sender's account to the recipient's account.

Types of IMPS Transfers

Two main types of IMPS transfer methods are-

Account Number & IFSC Code (P2A)

One of the easiest and most common methods for IMPS transfer in India, it uses the beneficiary's bank account number and specific IFSC code to send money to any bank account in India.

Mobile Number & MMID (P2P)

This is another method that links a mobile number to a bank account via a unique 7-digit MMID (Mobile Money Identifier) code. It is important to note that in this method, both sender and receiver must have their mobile numbers registered with their banks

Important Features of IMPS

• Instant Alerts: Both sender and receiver get immediate SMS confirmation. 
• Multi-Platform Access: Initiate transfers via Mobile Banking, Internet Banking, ATMs, and SMS/USSD codes (like *99#). 
• Flexible Identifiers: Send money using Account Number + IFSC, or Mobile Number + MMID, or Aadhaar Number. 
• Versatile Use: Suitable for P2P transfers, bill payments, online shopping, and merchant payments

Benefits of Using IMPS

• Reliable Money Transfer

IMPS ensures a reliable and dependable means of transferring money securely.

• Enhanced Privacy

IMPS does not require your bank account details to be shared, maintaining a high level of confidentiality during transactions.

• Diverse Applications

IMPS serves multiple purposes, including bill settlement and engaging in online shopping, thus offering versatility in its usage.

IMPS Transfer Limits and Charges in India

The IMPS transfer limits and charges vary from bank to bank. Here's a list of the top five banks along with per-transaction and daily limits, plus charges.

How to Use IMPS for Fund Transfer?

Via Mobile/Internet Banking (Most Common)

1. Log in to your bank account via app or website.
2. Visit the 'Fund Transfer' or 'Payments' section.
3. Choose IMPS as the transfer mode.
4. Add a new beneficiary (requires their Name, Account Number, IFSC Code, or Mobile Number & MMID) or select an existing one.
5. Enter the amount and add remarks.
6. Confirm the transaction with your MPIN, password, or the OTP sent to your registered mobile number

Via Mobile Number & MMID (Person-to-Person)

• Use the beneficiary's Mobile Number and their unique MMID (Mobile Money Identifier) to initiate IMPS transfer.
• If you do not have it, you can also generate your own MMID via SMS or Net Banking

Other Methods

• ATM: Use your debit card, select IMPS, enter beneficiary details (MMID/Account, Mobile No.), PIN, and amount.
• SMS: Send a specific format SMS (if your bank supports it) with beneficiary MMID and amount to a designated bank number.

IMPS vs Other Payment Systems

Common Issues and Troubleshooting IMPS Transactions

The common IMPS transaction issues include:

• Transaction declined
• Funds debited but not received
• Account/services restriction

IMPS transactions can fail due to multiple reasons such as incorrect details, insufficient funds or technical glitches. 

Steps for Troubleshooting

1. Check if your internet or network connection is stable.
2. Ensure that you have enough funds available for the transfer.
3. Always use the latest version of the app.

IMPS Participating Banks in India

IMPS (Immediate Payment Service) in India covers virtually all major banks, including -

• State Bank of India (SBI)
• HDFC Bank
• ICICI Bank
• Axis Bank
• Canara Bank
• Punjab National Bank (PNB)
• IndusInd Bank
• Federal Bank
• Union Bank of India
• IDFC Bank 

To check the participant banks in the IMPS work, users should refer to the official list maintained by the National Payments Corporation of India (NPCI), which operates the system.

• Visit the NPCI IMPS page.
• Navigate to "Live Member Banks" and click on it to check the list.

IMPS Changing the Future of Digital Payments

IMPS has changed the way India transfers money by offering instant and secure fund transfers across banks. It is a perfect choice for day-to-day payments and urgent financial transactions due to the speed and reliability of IMPS.

When quick access to funds matters just as much as fast transfers, choose Hero FinCorp for hassle-free loan applications, quick approvals, and seamless disbursals.

Explore personal loan options and apply today! 

Frequently Asked Questions

Can I reverse an IMPS transaction once it is completed?

No, in general, you cannot directly reverse a completed IMPS transaction because it's instant.

What are the charges for IMPS transfers?

IMPS transfer charges vary by bank and transaction amount. It generally ranges from ₹0 to ₹25 (plus GST). However, many banks offer free online transfers up to a certain limit. Please check your bank's website for the exact amount.

How do I check the status of my IMPS transaction?

Log in to your bank's mobile app or internet banking, go to the transaction/payment history, and use the unique IMPS Reference Number to check your transaction status.

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.