Everything You Need To Know About IMPS

Everything You Need To Know About IMPS

16 January, 2024

Sending money to another bank account has never been easier. You can conveniently transfer money to a bank account across India, within a few clicks. Out of the several fund transfer modes available, this article talks about Immediate Payment System (IMPS). When you choose to send money via IMPS, the beneficiary receives the amount in their bank account almost instantly. Here, you can get information on what IMPS transfer is, its features, the limits and the transfer process.

Meaning of IMPS

IMPS, the full form for which is Immediate Payment System, is a real time fund transfer system backed by the National Payment Corporation of India (NPCI). It is a robust, instant and 24x7 interbank fund transfer service available on channels like mobile, internet, SMS or ATM.

Features & benefits of IMPS

The following are the various perks of IMPS:

  • Real-time transactions

A standout feature of IMPS is its real-time transaction capability. Through IMPS, you can make instant transfers, irrespective of your geographical location or time.

  • 24x7 availability

IMPS is available 24x7, 365 days, thereby allowing you access to fund transfer at all times. Be it midnight or early dawn, public holidays, or weekends, IMPS will be at your service. This way, you need not adjust your schedule to your bank's operating hours.

  • Different modes of initiating transactions

Banks typically offer different modes to initiate IMPS transactions. You can use your mobile phone, NetBanking, Mobile Banking, SMS services or ATMs to transfer via IMPS.

  • Types of transactions 

IMPS supports various transaction types to cater to a wide range of uses. Besides the regular person-to-person (P2P) transfer, IMPS also permits direct fund transfers to a specific bank account number. This type of transfer is known as person-to-account (P2A). In the latter, the need for mobile number is eliminated.

  • Secure transactions 

IMPS incorporates robust security measures to safeguard your transactions. Two-factor authentication (2FA) ensures that only authorised individuals can initiate and authenticate transfers.

  • Higher transfer limits

IMPS allows you to transfer up to ₹5 lakh per transaction, with no limits on the minimum amount. Note that a nominal charge will be levied for IMPS transfers.

  • Remittance from abroad

You can send money from abroad to a bank account via a money transfer provider who has a tie-up with an Indian bank for IMPS transfer.

How does IMPS work?

IMPS transfers are of two types:

  1. P2P transfer, using mobile number and MMID

In the case of IMPS, Mobile Money Identifier (MMID) is a 7-digit code linked to a mobile number. Generation of MMID is a one-time process and multiple MMIDs can be linked to one mobile number. Here’s how you can use IMPS to make a P2P transfer.

  1. Log into the IMPS-enabled Mobile Banking application or NetBanking.

  2. Go to the fund transfer option, select IMPS and opt for P2P transfer.

  3. Enter the recipient's mobile number and unique mobile money identifier (MMID).

  4. Enter the desired transfer amount and authenticate the transaction using your preferred method (2FA or PIN).

  1. P2A transfers, using account number and IFSC 

With P2P transfers, you and your beneficiary need to register your respective mobile numbers with your respective bank account and get the MMID.

  1. Log into your online banking portals and go to the fund transfer menu.

  2. Add the beneficiary by providing their bank account number and IFSC.

  3. Once the beneficiary is added, you can go to the fund transfer option again and select IMPS.

  4. Select the P2A option and select the beneficiary.

  5. Enter the transfer amount and authenticate the payment.

IMPS transfer via ATM

An ATM is one of the channels you can use to transfer money. Here’s how you can do it:

  1. Locate an ATM near you that supports fund transfer.

  2. Insert the bank card in the slot. The ATM may prompt you to enter your PIN.

  3. Select the fund transfer or similar option displayed on the ATM screen.

  4. Select the beneficiary. If you have not added the beneficiary, you need to enter the recipient’s mobile number and MMID. You can also provide the account number, if such function is available.

  5. Enter the transfer amount.

  6. Authenticate the transaction and collect the cash.

  7. Collect the receipt.

The user interface for ATM fund transfer can vary across ATMs. Ensure you follow the on-screen instructions.

IMPS transfer via SMS

Your bank may also allow you to make fund transfers via SMS. However, you need to register your mobile number with the bank’s mobile banking portal. Once you have registered for mobile banking, you can initiate IMPS transfer through SMS. Your bank typically will provide you with a number for SMS banking.

  1. All you have to do is send a text to the number provided by the bank. The bank will also provide the text format that you must follow request a fund transfer.

  2. Enter the beneficiary details, such as account number, IFSC, transaction amount, etc.

Fund transfer via SMS can be a convenient option when you don’t have access to the internet.

Things to remember

Here are key things you must keep in mind when it comes to your IMPS payments:

  • Regardless of the channel you use for IMPS transfers, a two-factor authentication method will be used.

    • Transfers via mobile will be authenticated using mobile number and MPIN.

    • Transfers via ATM will be authenticated using card number and ATM PIN.

    • Transfers via NetBanking will be authenticated using user ID and NetBanking password or transaction password.

  • The bank may set different transfer limits for different channels. Make sure you check those limits with your bank.

  • If you’re remitting money via ATM or internet banking, mobile banking registration for IMPS is not mandatory. Also, a beneficiary receiving money via IMPS using account number of IFSC is not required to register for mobile banking.

IMPS limits

The NPCI has set a maximum limit of ₹5 lakh per transaction for all channels except SMS and IVR. However, banks can set their own limits. For instance, the following are the IMPS limits set by HDFC Bank:

  • Using Account number 

    • Maximum limit per transaction: ₹5 lakh

    • Maximum amount in a day per the third-party transfer (TPT) limits

  • Using MMID 

NetBanking and MobileBanking: ₹5,000 per day per Customer ID (on either of the channel)

Please note that the limit of ₹5,000 applies on transactions from either of the channels but not from both the channels.

IMPS charges

Charges for transfers via IMPS are levied by the bank. Such charges are typically applicable to only outward remittances, and not inward transactions. The bank may also waive off the charges for certain specific customers. Here’s what HDFC Bank charges for IMPS transfers:

  • For transfer amount of up to ₹1,000: ₹3.50 + taxes

  • For transfer amount from ₹1,001 to ₹1 lakh: ₹5 + taxes

  • For transfer amount greater than ₹1 lakh: ₹15 + taxes

Wrapping up

IMPS allows you to transfer funds to your beneficiary instantly. You can transfer money using the beneficiary’s mobile number or account number. Funds are processed in real-time and the facility is available 24x7x365.

Conveniently transfer funds from your HDC Bank account. Get started here.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.

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