IMPS – (Immediate Payment Service) Meaning, Transfer Limit and Charges.

Last Updated on June 1, 2021

IMPS - immediate payment service, imps fund transfer limit, imps charges, imps transaction limit

The Immediate Payment Service (IMPS), which allows account holders to connect a bank account and transfer funds via mobile phones 24x7x365.

Since February 2012, about 15 banks have made the IMPS service available to their customers, and the number of people using it has increased dramatically. As of now, almost all major banks have expanded the IMPS service.

In this article, we will read about IMPS in detail.

What is IMPS?

IMPS stands for Immediate Payment Service, launched by the National Payment Corporation of India (NPCI) in 2010. IMPS transaction is a real-time money transfer system interconnecting different banks in India. It offers a 24x7x365 domestic money transfer service via mobile phones to any part of India.

Use Case of IMPS

It has multiple uses. Some of the most significant are as follows.

  • Make a money transfer.
  • Make Online Payments.
  • Vendor Payment.
  • Bulk Payouts.
  • Refund payment for cancelled e-commerce order.
  • Money transfers to merchants for purchases.
  • Make purchases with your mobile device.
  • Check the status of the Aadhaar seeding with your bank account.

IMPS Fund Transfer Limit

The transaction limit for IMPS transfers is Rs. 2 lakh. Banks, on the other hand, are free to set their own upper IMPS Transfer limit.

However, within the first few days after adding a new beneficiary, IMPS Limit can be strict. Therefore, Before you make an IMPS fund transfer, check with your bank to verify the IMPS fund transfer limit.

Charges for IMPS Fund Transfer

Just like other systems of transferring funds, there are also charges for IMPS fund transfer. Various banks have different fees for IMPS transactions. 

Transferring Amount IMPS Transaction Charges (excluding GST)
Rs. 0 <= Rs. 10,000Rs. 2.50
Rs. 10,000 – Rs.1,00,000Rs. 5
Rs. 1,00,000 – Rs.2,00,000Rs. 15

Advantage of IMPS

  • Domestic money transfer is instant.
  • IMPS transaction is available 365 days a year, 24 hours a day, 7 days a week (yes, also available on weekends/holidays).
  • A safe, secure and stable platform.
  • Easily reachable.
  • Mobile, Internet, and ATM services are all available.
  • For initiating purchases, you have a variety of input choices to choose from, such as Account no-IFSC, MMID, or Aadhaar number.

Step by Step Guide for IMPS Fund Transfer

The following approaches are available for IMPS money transfers:

  • SMS banking through mobile phones.
  • Smartphones using net banking or smartphone apps for IMPS Fund Transfer.
  • You can also make IMPS transaction through ATM and internet banking.

Let us now look at some general steps to make IMPS Transfers.

  • Choose the payment platform you choose to use and log in with your credentials.
  • Enter the receiver’s MMID and mobile phone number. Alternatively, you may enter the bank account details with an IFSC code or Aadhar card number.
  • Fill in the amount you want to transfer.
  • Add any comments or the remark for the money transfer.
  • The last step is entering the Pin, and that’s it.

If the transfer happens successfully, both the receiver and sender will receive a credit and debit message on their mobile phones.

Conclusion

At last, we can say IMPS is one of the most significant real-time fund transfer mode available in India.

Frequently Asked Questions (FAQs)

  1. How to enable IMPS transaction?

For the sender

If a customer wishes to do an IMPS transaction through a mobile phone, he or she must first register under Mobile Banking. However, Mobile registration is not needed for phone, ATM, or bank branch channels.

For the Receiver

For getting payments, get MMID from the bank and share it with the sender, or alternatively, share Bank account details, IFSC, or Aadhaar number. The receiver will have to register his or her phone number to receive transaction-related SMS notifications.

  1. Can we link two or more bank accounts with a single mobile number?

Yes, You can do that. However, every account associated with a single mobile number will have a different MMID.

  1. What is MMID?

Banks issue Mobile Money Identifiers (MMID), which are a 7-digit unique number. MMID is one of the inputs that enable fund transfer when combined with a mobile number. The combination of a mobile number as well as an MMID is uniquely linked to a bank account and helps in the identification of the beneficiary. The same Mobile Number can be connected to multiple MMIDs.

To get MMID, you can contact your bank.

  1. Do I have to re-register for Mobile Banking if I change my phone number?

Yes, customers must notify their banks of their new mobile numbers.

  1. Is IMPS system equipped with a stop payment feature?

Since IMPS is an instant fund transfer service, payments cannot be stopped or cancelled, once initiated.

  1. What are the deadlines for sending and receiving IMPS payments?

IMPS transactions can be submitted and received 24 hours a day, seven days a week, including holidays.

  1. What do I do if I have a complaint about an IMPS transaction?

Customers may file a complaint through their bank branches about IMPS transaction.

  1. Is it safe to send money through IMPS?

IMPS is a reliable, stable, safe and cost-effective system. It is one of the most popular and preferred systems for transferring money.

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About the Author: Om Prakash