The IMPS full form stands for Immediate Payment Service. IMPS differs from NEFT and RTGS since itâ€™s available 24/7 and 365 days no matter bank holidays. IMPS is the immediate fund transfer service that facilitates fast and easy fund transfer without any hassles.
Most people donâ€™t know that the IMPS full form or its features and frequently confuse it with different modes of funds transfer including NEFT and RTGS. But it is totally different from the other two. This is an inter-bank electronic fund transfer system that uses mobile phones as a platform for the transfer process.
What are imps and how it works?
IMPS is more popular on mobile phones but it can also be used through desktops, laptops, and tablets. The service works in liaison with VPA (Virtual Payment Address), i.e. a unique virtual payment address that transfers money directly from your linked bank account.
On mobile phones, you only have to generate a unique 7-digit MMID (Mobile Money Identifier). After that, you can avail of the service as per the mobile application of your bank. The maximum transaction limit of IMPS for regular use goes from Rs. 10,000 to Rs. 2 lakh according to different banks. In addition, there is no minimum limit for transactions in IMPS.
Features Of IMPS
Instant Fund Transfer: As the IMPS full form suggests, fund transfer through IMPS is simple and instant. The service uses mobile phones as a channel for accessing bank accounts and performs inter-bank fund transfers in a secure way.
Availability: IMPS is available 24/7 and 365 days enabling users to transfer funds anytime and from anywhere. You do not have to go to the bank and follow an elaborate process for making payments to your clients or transferring funds. The service functions seamlessly throughout the year even on public holidays and bank holidays.
Transaction Limit: Min threshold for RTGS transfer is Rs 2 lakh and the max is 10 Lakh. The transaction limit of IMPS is from Re 1 to Rs 2 lakh. Different banks have different transaction limit depending on their customer profile.
Charges: Most of the banks only charge Rs 5 + ST for IMPS transactions. Some banks like CitiBank donâ€™t charge for IMPS transfer.
Confirmations: Both the sender and receiver get instant credit and debit notifications as soon as the funds are transferred. This means that you do not have to worry about whether the funds are transferred or not. The service takes care of its processes very well.
Versatility: Versatility is the main feature of IMPS as it can be used in various modes as well. Users can use IMPS for P2P (person to person) funds transfer using the mobile number or by using the bank account details. IMPS can be used for P2M (Person to Merchant) payments as well.
Usability: IMPS is not limited to funds transfer only. It can be used for various other purposes as well. The service can be used for insurance premium payment, online shopping, OTC payments, utility bill payments, travel, and ticketing and for paying fees to schools, colleges, and universities.
What is needed for IMPS transfer?
The Indian bank offers Immediate Payment Services (IMPS) for customers. IMPS is an instant fund transfer service that can be carried out using mobile phones, internet banking or even ATMs. To carry out an IMPS transfer, the details required are beneficiary name, account number, branch name, and IFSC code.
Customers can also send and receive money through IMPS using a Mobile Money Identification Number (MMID) and mobile number. Customers can send funds using MMID as well as IFSC. Fund transfers can be made on a person to person basis or a person to account basis in Indian banks.
This facility is available to Indian bank customers who use the mobile or internet banking services of Indian banks. If a customer wants to carry out mobile banking using IMPS then a mobile banking registration process has to be initiated.
How to Transfer Money Using Indian bank IMPS with IFSC
- Log in to the Indian bank website by providing username and password
- Tap on â€˜Payments Transfersâ€™, go to â€˜IMPS Funds Transferâ€™ and click â€˜Funds Transferâ€™
- Click on the â€˜Person to Account (Using IFSC)â€™ option and click Proceed
- Add beneficiary details such as name, account number, IFSC code, etc
- Key in the amount to be transferred and click â€˜Submitâ€™
- Verify details and click â€˜Confirmâ€™
- Mobile-based OPT authentication can be used to approve the transaction
Is IMPS transfer free?
Fund Transfer through IMPS doesnâ€™t need any confidential information from both the sender and the recipient. The basic requirements for sending money through IMPS include name, mobile number, and MMID of the beneficiary. However, funds can be transferred through IMPS using an account number and IFSC Code too but these details are complicated and even a small mistake in entering data may result in significant financial loss.
IMPS is an inexpensive mode of fund transfer. The charges for IMPS are as follows:
|Transaction amount||SBI IMPS Charges|
|Up to Rs.1,000||Nil|
|Up to Rs.1,001 to Rs.1 lakh||Rs.5|
|Above Rs.1 lakh to Rs.2 lakh||Rs.15|
FAQâ€™s of IMPS
What is IMPS?
Immediate Fund Transfer Service (IMPS full form) is an electronic fund transfer method that is easy to use convenient and speedy. IMPS transfers can be made through mobile banking, internet banking, or through ATMs.
What is MMID? When will an MMID be allocated to a customer?
MMID, expanded as Mobile Money Identification Number is a 7-digit code that is used for IMPS transfers. It will be allocated once the customer registers his/her registered mobile number.
What are the details required for an IMPS â€˜Person to Personâ€™ transfer?
The details required are:
- MMID of the beneficiary/payee
- Mobile number of the beneficiary/payee
- Name of the beneficiary/payee
What are the details required for an IMPS â€˜Person to Accountâ€™ transfer?
The details required are:
- Name of the beneficiary/payee
- Account number of the beneficiary/payee
- IFSC code of the beneficiary/payee
What is the minimum amount for an IMPS transfer?
The minimum amount transferable through an IMPS transfer can be as low as Re.1. The maximum amount which can be transferred through IMPS transfer is Rs.2 lakh. IMPS transfers are not trackable and any amount more than Rs.2 lakh will require an RTGS transfer.
Are there any extra charges for an IMPS transfer?
The Finance Ministry of India, in order to encourage digital transactions, has removed any kind of additional fee for an IMPS mode of money transfer.