What is IMPS in Bank?

Imagine your friend forgot his wallet and needs ₹1,000 urgently while he’s buying pani puri. You’re at home. No cash, no ATM near him. What do you do? You open your bank app and tap a few buttons, boom, the money reaches him instantly. That’s IMPS in action. So it's important to know what is IMPS in Banks.

What is IMPS?

IMPS stands for Immediate Payment Service. It’s a system that helps you send money instantly, anytime, 24x7, even on Sundays or holidays. No waiting. No “bank timings”. It's a service by NPCI (National Payments Corporation of India) that connects banks and lets money travel from one account to another faster than your Swiggy order.

Features of IMPS

Here’s are some features:

Fast and Real-Time Transfers

• IMPS lets you send money instantly, with funds reflecting in the receiver’s account within seconds.
• You also get instant SMS/email alerts for both debit (you) and credit (receiver).
• Great for urgent payments like adding funds to your Demat account before the market bell.

Easy to Use

• IMPS is super simple through mobile banking apps or net banking.
• No complex steps, just a few taps, and the money is on its way.
• Even beginners can use it without confusion.

For example, if you can order food on Swiggy, you can use IMPS. It’s that easy.

Anytime, Anywhere Access

• Works 24x7, including Sundays and public holidays.
• No dependency on bank timings or working days.
• All you need is a smartphone with net banking or a banking app.

Flexible Usage Options

IMPS is not limited to person-to-person transfers. It can also be used for:

• Paying merchants and shopkeepers.
• Online shopping.
• Utility bills (electricity, water, gas).
• School/college fees.
• Insurance premium payments.
• Travel and ticket bookings.
• Recharge and DTH payments.

It’s like having a mini-bank in your pocket.

Multiple Transfer Modes

You can use IMPS through:

• Mobile number + MMID
• Account number + IFSC
• Bank ATM
• SMS-based transfer

Pick what suits your comfort level.

Inter-Bank Fund Transfers: 24/7

• You can send money to any other bank account across India.
• Supports all major banks under NPCI.
• No need to worry about branch location or banking hours.

Nominal Service Charges May Apply

• IMPS transactions may have a small charge (usually ₹2.50-₹25), depending on the amount and the bank.
• GST (currently 18%) is charged separately.
• Many banks offer zero charges for mobile or internet banking IMPS transfers.

Always check your bank’s latest fee structure before large transfers.

How Does IMPS Work for Money Transfers?

Let’s say you owe your cousin ₹2,000 for IPL match tickets. You can send the money using IMPS from your bank app or mobile banking. Here’s how it works, but first you need:

• Your bank app or net banking login.
• Receiver’s mobile number + MMID or their account number + IFSC.
• Your internet or mobile data.

You open the app, fill in the details, enter the amount, and hit "Send". Within seconds, the money reaches their account. It’s like Paytm, but through your bank directly.

Why Use IMPS to Send Money?

IMPS is like that friend who’s always available, doesn’t make excuses, and delivers instantly. Here's why people (especially in India) love using IMPS:

• Instant Transfer: Money reaches the other person in seconds. No delays, no waiting, not even at 2 AM.
• Safe and Direct: It goes straight from your bank to theirs. No middle apps, no shady wallets.
• Works 24x7, 365 Days: Yes, even on Sundays, national holidays, and Diwali. Banks may be closed, but IMPS never sleeps.
• Perfect for Urgent Situations: Like when you need to add funds to your stockbroker account before the market opens, or when your friend is stuck at a petrol pump without cash.

How to Send Money Using IMPS?

Step-by-Step via Mobile Banking:

1. Open your bank’s app (like SBI YONO, HDFC app, etc.)
2. Go to ‘Fund Transfer’.
3. Choose IMPS.
4. Select Mobile No + MMID or Account No + IFSC.
5. Enter amount, remarks (optional).
6. Enter OTP or PIN.
7. Done! Ramesh gets the money instantly.

Benefits of IMPS

IMPS has become one of the most used ways to transfer money in India, and for good reason. It’s quick, simple, and works across devices. Whether you're transferring money to a friend, paying for something online, or topping up your Demat account, IMPS just works. Here are some benefits of using IMPS:

Accessible on Multiple Platforms

You can use IMPS through:

• Mobile banking apps
• Internet banking
• ATM machines
• Even SMS banking in certain cases

No need to depend on one device, use whatever’s convenient.

Easy Beneficiary Addition

Adding someone to send money to (called a beneficiary) is simple:

• Fill in their account number and IFSC (or mobile number + MMID)
• Approve via OTP
• Done in minutes

No long waiting times or complicated forms.

Versatile Use Cases

IMPS isn’t just for sending money to friends. You can use it for:

• Receiving payments from clients or family
• Paying merchants directly from your bank
• Mobile recharge, utility bills, etc.
• Funding your stockbroker account (Zerodha, Upstox, etc.)

It’s like the Swiss army knife of digital payments; it works in every situation.

Fast, Safe, and Reliable

IMPS sends money in real-time, with no delays, and it’s safe too:

• Uses bank-level encryption
• Requires 2-factor authentication (like OTP + PIN)
• Direct bank-to-bank, no chance of money getting stuck in some wallet

24/7 Availability

IMPS works:

• All day
• All night
• All holidays
• Even during bank strikes sometimes.

There’s no “bank closed” excuse with IMPS. Perfect for emergencies.

Instant Notifications

The moment you hit send:

• You get an SMS/email that confirms it’s gone
• The receiver gets a message that it’s received

So you’re never left wondering, “Did it go through?”

IMPS Charges List of Different Banks

Using IMPS is usually cheap, but some banks do charge a small fee depending on the transaction amount. Charges usually range between ₹2.50 to ₹25 for transactions up to ₹5 lakh. However, many banks, especially private ones, have started offering IMPS transfers for free, especially via mobile or internet banking. Let’s look at what different banks charge:

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

Note: These charges may vary depending on whether you're using mobile banking, internet banking, or at a branch. Some banks waive these charges for online transactions.

IMPS Transaction Charges

Here’s a quick breakdown of how much you’ll be charged based on the transfer amount. These charges are for outward IMPS transfers (i.e., when you send money) and exclude GST (which is 18%).

• Transactions exceeding INR. 1,00,000 the charges are INR 15 plus applicable GST.
•  Transactions between INR. 1,001 and INR. 1,00,000 the charges are INR 5 plus applicable GST.
• Transactions ranging from INR. 0  to INR 1,000, the fees are INR 15 plus applicable GST.

IMPS Limit

In October 2021, the Reserve Bank of India (RBI) responded to India’s growing demand for fast digital payments, especially from traders, small businesses, and individual investors.

So, what did the RBI do? It increased the IMPS daily limit from ₹2 lakh to ₹5 lakh per transaction. This upgrade was a game-changer, especially for:

• Stock market investors are topping up brokerage accounts.
• Small business owners are making urgent supplier payments.
• Anyone needing large, instant money transfers without RTGS.

MPS Transfer Limits by RBI (as of now)

• Minimum amount: ₹1
• Earlier maximum limit: ₹2,00,000
• New maximum limit (2021): ₹5,00,000
• Applicable to: Mobile, net banking, and branches

How to Check Your Bank’s IMPS Limit?

• Log in to your mobile banking app
• Go to Transfer Limits under Fund Transfer settings
• Or visit your bank’s website or contact customer care

Some banks may offer:

• ₹2L limit by default on mobile
• ₹5L limit via net banking or at the branch
• Option to increase your limit with request/OTP verification

IMPS Transfer Time

IMPS stands for Immediate Payment Service, and yes, it really is immediate.

Standard IMPS Timing

• Available 24x7, works every day, even Sundays and bank holidays.
• Transfers are processed instantly, usually within 5 to 30 seconds.
• In rare technical issues, money is credited within an hour, max.

This makes IMPS ideal for:

• Emergency fund transfers
• Topping up brokerage accounts before the market opens
• Sending money late at night or on weekends

Also Read - How to Open a Kotak Mahindra Bank Zero Balance Account

Types of IMPS Transfers

Not all IMPS transfers work the same way. Depending on whether you know someone’s bank account details or just their mobile number, IMPS offers two easy options. This flexibility helps you choose the most convenient method based on what information you and the receiver have.

IMPS via Account Number and IFSC Code

This is the most commonly used method, especially if the person you're sending money to isn’t using mobile banking.

What You Need:

• Receiver’s bank account number
• IFSC code of their bank branch (e.g., SBIN0001234)

For example. Let’s say you’re sending ₹50,000 to your stockbroker or your uncle in another city. You’ll need:

• His bank account number (like 1234567890)
• His bank’s IFSC code (like HDFC0001234)

You just plug those into your bank’s app, enter the amount, and send via IMPS.

Best for:

• Business payments
• Paying rent
• Transferring to someone not using mobile banking

MPS via Mobile Number and MMID

This method is more personal and mobile-focused. It lets you send money using just the mobile number and a special code called MMID (Mobile Money Identifier).

What You Need:

• Receiver’s mobile number
• Their MMID (7-digit number given by their bank)

Note: MMID is linked to your mobile number and bank account. You and the receiver both must have registered mobile numbers with your banks.

For example, you want to send ₹2,000 to your cousin quickly, but don’t know his bank details. He shares his mobile number and MMID.
You enter both in your bank app and send the money reaches him instantly.

Best for:

• Sending to friends or family
• Quick payments when the account number isn’t handy
• Emergency situations

Conclusion

In conclusion, now you know IMPS isn’t some techy banking jargon. It’s like a digital lifeline for desi money transfers. Whether you're paying a friend, topping up your trading account, or sending money to family in an emergency, IMPS is quick, simple, and always ready.