Immediate Payment Service (Imps)

Immediate Payment Service was introduced in the year 2010 by the Indian government and is facilitated by the National Payment Corporation of India (NPCI). It is a service which enables you to make payments using your mobile number and completes the transactions immediately. Imps uses the Aadhaar number or mobile number to connect to bank accounts and complete payments. Therefore, it is a secure method for transferring funds. In this article, we view the various aspects of Imps in detail.

The Benefits of Imps

The benefits of Imps given to the consumers are as follows:

The fund transfer can be done using MMID, Aadhaar number and mobile number.
Imps serves you with the Debit and Credit Confirmation by SMS immediately.
Using Imps the money will be credited in the beneficiary’s account within a few seconds.
Imps is safe, secure and cost-effective.
Imps has no minimum amount limit on transactions of funds.
Imps is available for 24 hours in a day and even on holidays.
The customer can make intrabank as well as interbank payments.
Imps can be used on a mobile phone, internet banking and even ATMs.
In Imps it is not compulsory to know about beneficiary’s Account number and IFSC.

List of Banks Participating in Imps

The banks using Imps fund transfer facility are listed out below:

Allahabad Bank
Andhra Bank
Axis Bank
Bank of Baroda
Bank of India
Canara Bank
Catholic Syrian Bank
Central Bank of India
Citi Bank
Federal Bank
HDFC Bank
HSBC Bank
ICICI Bank
IDBI Bank
Indian Bank
Indian Overseas Bank
Karnataka Bank
Karur Vysya Bank
Kotak Mahindra Bank
Punjab National Bank
State Bank of India
Syndicate Bank
UCO Bank
Union Bank Of India
Vijaya Bank
Yes Bank Ltd

Usage of Imps

IMPS can be utilised to avail many services. One of the government’s most recommended service *99# banking is also based on IMPS. You can apply Imps to transfer fund through these mediums.

Smartphone- Bank App/ SMS / WAP/USSD (NUUP)
Basic phone-SMS/USSD (NUUP)
Internet- Bank’s Internet banking facility
ATM- by using ATM Card at Banks ATM.

Imps Process

IMPS utilises the mobile number or Aadhaar number to connect with a bank account. If fund transferred from one bank account to another bank account using IMPS, it initially connects you with your bank account with the help of your mobile number. Imps differs from NEFT and RTGS, as it does not transfer funds immediately to the beneficiary’s account. It transfers the amount from your account to your mobile number. Then it transfers that fund from respective mobile number to beneficiary mobile number. And at finally from beneficiary’s mobile number to his or her account.

How to enable Imps?

If the customer wants to transfer the fund through Imps using mobile, then you are supposed to register for the mobile banking. Some banks register customer mobile number for mobile banking at the time of opening your account while others want a separate application to activate the mobile banking. However, the customer can use Imps through the net banking, ATM and branch without activating your mobile banking. If you are going to receive money through the Imps method, the money would be credited to your account, and you will get SMS in your mobile. However, you can also get MMID from your bank to receive money quickly. MMID can be used instead of the bank account number and IFSC or Aadhaar number.

Imps Charges

Facilitating IMPS charges applies not only to banks but also to the government. Therefore the transactions using Imps have some specific charges.

On transfers up to Rs. 10,000 will be Rs. 2.5 with GST.
On transfers from Rs. 10,000 to Rs. 1,00,000 will be Rs 5 with GST.
On transfers from Rs.1,00,000 to Rs. 2,00,000 will be Rs 15 with GST.

Imps vs NEFT

In NEFT, funds transfer from one account to another in groups. If you transfer money to the account, it does not process credit immediately. Instead, it credits in the next settlement cycle which happens in every 60 minutes. Where all the payments made through Imps directly transfers to the beneficiary’s bank account. Also, NEFT services are available only from 8.00 am to 7.00pm on weekdays, and first and third Saturday from 8.00 am to 1.00pm. Also, this NEFT service cannot be availed on bank holidays. But in the case of IMPS, the customer no need to bother about holidays or timings. The customer can avail Imps services even at midnight or on bank holidays.

Imps vs RTGS

Funds transfers using RTGS are paid in real time. But RTGS is a payment made for a large amount of money. Funds which are less than two lakhs are not allowed to transfer using RTGS service. Where in the case of Imps, there is no minimum limit for the amount. RTGS can be availed from 9.00am to 4.30pm on weekdays and from 9.00am to 2.00pm. As similar to NEFT, RTGS also cannot be availed during bank holidays. But in case of Imps can be used anytime.

Back to Learn

Frequently Asked Questions

Common questions about Immediate Payment Service (IMPS).

IMPS is a service that enables customers to transfer funds from one bank account to another instantly using their mobile number or Aadhaar number. It facilitates real-time, interbank electronic fund transfers, eliminating the need for net banking or visiting a bank branch.

IMPS utilizes the customer's mobile number or Aadhaar number to connect with their bank account. When transferring funds from one bank to another, the money is first debited from the sender's account linked to their mobile number, then credited to the recipient's mobile number, and finally transferred to the recipient's bank account.

Some key benefits of IMPS include instant fund transfers, no minimum transaction limit, 24/7 availability (including holidays), secure and cost-effective transactions, and the ability to transfer funds without knowing the recipient's bank account number or IFSC code.

IMPS transactions can be initiated through various channels, including mobile banking apps, SMS, internet banking, ATMs, and USSD (*99#) services offered by participating banks.

Major banks like State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Punjab National Bank, and many others offer IMPS services to their customers.

Yes, IMPS transactions are subject to nominal charges, which vary based on the transaction amount. For transfers up to Rs. 10,000, the charge is typically Rs. 2.5 + GST, while for higher amounts, the charges increase proportionally.

IMPS is a secure mode of fund transfer as it uses the customer's mobile number or Aadhaar number as a unique identifier, which is linked to their bank account. Additionally, IMPS transactions are encrypted and authenticated by the National Payments Corporation of India (NPCI).

Yes, you can receive funds through IMPS by providing your mobile number or Aadhaar number to the sender. Some banks also offer MMID (Mobile Money Identifier) as an alternative to account numbers for receiving IMPS payments.

Unlike NEFT and RTGS, which have specific operating hours and settlement cycles, IMPS facilitates real-time fund transfers 24/7, including holidays. Additionally, IMPS has no minimum transaction limit, while RTGS is typically used for high-value transactions above Rs. 2 lakhs.

While some banks automatically register customers for mobile banking upon account opening, others may require a separate application to activate the service. However, you can use IMPS through internet banking, ATMs, or bank branches without activating mobile banking.