What Is IMPS: How To Register, Benefits & Charges

Until 2010, there were two ways to transfer funds – RTGS and NEFT. But the problem with these types was that they used to work only within the working hours. So, a new payment system, IMPS, was launched to overcome this problem and create a payment method that can work 24*7*365.

What is Immediate Payment Service (IMPS)

IMPS stands for Immediate Payment Service. IMPS was launched on 22nd November 2010. It is an electronic fund transfer system which allows the senders to instantly transfer the funds across the Indian banks electronically. It facilitates inter-bank fund transfer digitally. IMPS is an easy and safe method for transferring funds. The facility is available 24*7*365, which means it works despite weekends and holidays. It is managed by the National Payments Corporation of India (NPCI). The senders need to know the bank account number and the IFSC( Indian Financial System Code) or the receiver’s mobile number and MMID(Mobile Money Identifier) for transferring money through IMPS. While there are no set criteria for the minimum amount to be transferred, the maximum amount to be transferred through IMPS is INR 2 lakhs.  

In today’s global economy, digitalization is on the spike. The market is multiplying, so payments need to be quick. This encourages the need for digital payments. IMPS helps businesses, large or small, consumers and merchants take advantage of instant electronic fund transfers.

Features of IMPS

• IMPS is a safe and easy way to transfer funds digitally.
• It uplifts the government’s plan of digitalization. 
• The facility is available 24*7 regardless of holidays.
• IMPS initiated efforts to make India a less cash economy. 
• It is one of the fastest ways of inter-bank fund transfer. 
• The maximum transaction limit is 5 lakh 
• It is user-friendly as it makes payment simple. 
• Funds can be transferred in two ways-

1. By using the mobile number and MMID(Mobile Money Identifier) of the receiver or,

              2. by using the bank account number and the IFSC( Indian Financial System Code) of 

the receiver. 

Participants for IMPS

• The sender or the Remitter
• The receiver or the Beneficiary
• Banks 
• National financial switch- NPCI

HOW TO REGISTER FOR IMPS? 

 Registration for the Remitter- 

• Download the mobile banking application. 
• Register your mobile number to avail the mobile banking facility.
• Get Mobile Money Identifier (MMID) and Mobile banking Personal Identification Number(MPIN) from the bank. 

Registration for the Beneficiary–  

• Download the mobile banking application. 
• Register your mobile number to avail the mobile banking facility.
• Get Mobile Money Identifier (MMID) from the bank.

Steps to Transfer funds through IMPS

 Money can be transferred effortlessly using IMPS by the Remitter (sender) to the Beneficiary (receiver) in the following below-mentioned steps-

Step 1  – The Remitter will login to their mobile banking application by entering the required credentials.

Step 2- Select the IMPS menu from the fund transfer options.

Step 3-  Now add the Beneficiary’s account and link their account details by entering the Bank account number and IFSC of the Beneficiary or the Mobile number and MMID of the Beneficiary.

Step 4- The next step is to enter the amount to be transferred. 

Step 5- Enter the remark or reason to transfer the funds. 

Step 6- The Remitter needs to enter their MPIN (Mobile Personal Identification Number) to approve the fund transfer. 

 Step 7- Once the transaction is successful, both the sender and receiver will receive the confirmation message of debit and credit, respectively.

Step 8- Note the transaction reference number for any future query.

Alternatively, the Remitter can use an ATM to send money to the receiver via IMPS in the following procedures- 

Step 1- Remitters need to visit a nearby ATM and insert their debit card. 

Step 2- Select the ‘fund transfer option’ and go to ‘IMPS fund transfer’.

Step 3- The Remitter will have to enter the Beneficiary’s details such as account number, IFSC code, amount to be transferred, and MMID/MPIN for approval. 

Step 4- Finally, press OK, and the Remitter and the Beneficiary will receive a message about the funds transferred.

BENEFITS OF IMPS

• FOR THE CUSTOMERS

IMPS is advantageous to customers;  it is an instant and real-time fund transfer system. It also helps the users to use it anytime and from anywhere.

• FOR THE GOVERNMENT

IMPS is a way to promote and support the Digital India vision of the Government. Hence, it is beneficial for the government.

• FOR THE BANKS

IMPS is a way is also helpful for the banks as it develops a good connection between banks and mobile operators as processes transactions 24*7 electronically. It reduces the bank’s traditional methods of transacting thereby eliminating the banking paperwork.

CHARGES OF IMPS 

 Charges are the fees associated with a particular transaction. Every transaction includes a fee or charge added to it. In the case of the Immediate Payment Service, it depends on the amount to be transferred plus a service tax of 18%. Different banks have decided on the charges in their individual capacity. The following are applicable charges excluding Goods and Service Tax (GST) through IMPS transactions. 

₹2.5 – ₹ 5  for transactions up to ₹ 10,000. 

₹5 – ₹10 for transactions between ₹ 10,001 – ₹ 1 lakh. 

₹15 – ₹20  for transactions between ₹ 1 lakh – ₹ 2 lakh.

 FINAL WORDS 

 India is a growing economy, and multiple transactions occur every second. In the view to avoid bank paperwork and to fasten the process of payments, Immediate Payment Service was launched. IMPS is one of the fastest and most secure ways to transfer funds electronically from one bank account to another over mobile phones. It has provided several benefits to users and banks and supports Digital India’s aim. 

There are a few simple steps to register and start using IMPS. The primary need is to start the mobile banking application and get the MMID and MPIN from the banks. IMPS charges are different for different banks. IMPS proves to be a user-friendly system for customers.

FREQUENTLY ASKED QUESTION (FAQs)

1. How long does it take for the money to be credited in the beneficiary account through IMPS?

Money will be credited to the beneficiary’s account instantly using the IMPS method of payment. 

2. Can we use IMPS during holidays?

Yes, IMPS is a 24*7*365 service which can be used during holidays and weekends. It is a never-off process. 

3. Is there a lower limit for the amount of funds to be transferred through IMPS?

No, there is no lower limit on the amount of funds to be transferred through the IMPS facility. Although the maximum amount of funds to be transferred should be at most INR 2 lakhs. 

4. Is it expensive to use IMPS services?

IMPS involve minimal charges. The charges depend on the amount of funds to be transferred. Different banks have different fee structures for using IMPS services.