IMPS: What is IMPS?, Full form, Charges, Meaning, Process, Limits

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We all look for an easier way to transfer funds, not just quickly but safely as well. Payment methods like RTGS, NEFT and IMPS have been designed to do just that. While RTGS and NEFT payments have a time limit in the day, there are no such restrictions in case of IMPS allowing for immediate fund transfer at any time of the day.

Here I  provide our readers with details on one of the most convenient methods of payment for smaller amounts – IMPS

IMPS Full Form

The full form of IMPS is an Immediate Payment Service.  

What is IMPS?

IMPS is an electronic funds transfer for immediate transfer of money across different accounts.

It was founded on 22nd November 2010 and is managed by the National Payments Corporation of India (NPCI) and founded on the basis of the National Financial Switch technology which is already existing.

It was founded out of the need to Transfer funds in case of an emergency at any time of the year and day.

There are two ways of doing an IMPS payment- either through the account number or through the MMID (Mobile Money Identifier (MMID) is a 7 digit code issued by a participating bank to their Mobile Banking registered customers for availing IMPS service as a beneficiary. Every account will have a unique MMID.)

When can you transfer funds?

Unlike its other counterparts- RTGS and NEFT- IMPS are operable 24/7 all the days of the year even on bank and government holidays. The transfer of funds is almost immediate.  

Transaction limits on IMPS transfers

IMPS is used mainly for smaller transactions and is more of an emergency mode of Payment, when there are no other options available. Although there is no limit to the minimum amount that can be transferred, every bank has a different upper limit to IMPS transactions. Here is a list of some of the more famous banks with their transaction limits:

ICICI Bank

  1. Through account number-  Rs 2 lakh
  2. For imobile- per transaction (10 lakhs/ day)
  3. For internet banking- per day  
  4. Through MMID- Rs 10,000

HDFC Bank

  • Through account number- Rs 2 lakhs/ transaction  
  • Through MMID- Rs 5000/ day

Axis bank

  1. Rs 2 lakhs/ day

Kotak bank

  1. Rs 2 lakhs/ day

SBI

  1. For newly added beneficiary (within 4 days) – Rs 1 lakhs/ day  
  2. For older beneficiary (beyond 4 days)- Rs 2 lakhs/ day

Service charges

Unlike its other counterparts- IMPS has a charge even for online transactions. (no transfers happen through the bank branch anyways). The charge is why IMPS is not preferred when there is no hurry for the transaction of money. Here is a list of some of the most well-known bank and their charges for IMPS transaction:

ICICI bank

  1. For transactions upto Rs 10,000- Rs 5 + GST
  2. For transactions above Rs 10,000 and upto 1 lakh- Rs 5 + GST
  3. For transactions above Rs 1 lakhs and upt Rs 2 lakhs- Rs 15 + GST

HDFC Bank

  1. Above Rs.1 to Rs 1 Lakh – Rs.5 + GST2.  
  2. Above 1 lakh to 2 Lakh – Rs.15 + GST

Axis Bank

  1. Upto Rs. 1000 – Rs. 2.5 per transaction
  2. Above  Rs. 1000  up to Rs. 1 Lakh – Rs. 5 per transaction
  3. Rs. 1 Lakh to Rs. 2 Lakh – Rs. 15 per transaction

Kotak bank

  1. Above Rs 2 lakhs  up to Rs 5 lakhs – Rs 2 
  2. Above Rs 5 lakhs – Rs 40

The process to use IMPS Using Account number

  1. Go to the official site of the bank in which your account is made.
  2. Click on the net banking option.
  3. Log in to the site using the given username and password.
  4. Click on the ADD option and add the beneficiary account details- beneficiary name, beneficiary account number, address.
  5. You have to wait 24 hours after registering the beneficiary’s account to yours to do an IMPS transfer for most banks  
  6. If the account has already been registered, you can proceed.
  7. Click on the IMPS funds transfer option.
  8. Add your account number
  9. Add the IFSC code of the beneficiary account. It speaks of the location of the beneficiary bank branch. fill the amount to be transferred
  10. Accept the terms and conditions and confirm the details.
  11. the beneficiary will receive a message of the transaction

The process to use IMPS using MMID  

  1. Follow the same steps as above
  2. However, instead of putting in your account number and IFSC code, put in the MMID number which is special to your account and given by your bank to you.
  3. The rest of the steps are the same.  

Advantages

  1. IMPS is safe, efficient and quick
  2. Smaller  funds are transferred safely to the beneficiary
  3. Used for emergency purposes.
  4. There is no time limit to the transactions and this mode of payment works 24/7.
  5. Alleviates the need to carry around a lot of cash
  6. Funds are transferred almost immediately. Very useful for urgent need to transfer funds.
  7. No minimum limit to transactions
  8. The amount is not grossed at the end of the transaction.
  9. Reduces scope of corruption.

Disadvantages

  1. Service charges are more than those of NEFT and RTGS.  
  2. Limit to transactions though there is no minimum amount limit larger amounts cannot be transferred.
  3. Human error is a possibility while entering bank details since the process is highly technical.
  4. May not reach the more remote parts of the country since it requires an internet connection.

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