IMPS stands for Immediate Payment Service. It is an instant interbank electronic fund transfer service in India. Unlike NEFT which operates in batches, IMPS is real-time and works 24×7, 365 days a year, including bank holidays.
When you ask “what is IMPS,” you are referring to the payment mode that allows you to send money to a friend or merchant instantly, even at 2 AM on a Sunday. Before UPI became popular, IMPS was the primary method for fast transfers.
What Does IMPS Mean?
It allows transfer via two modes:
- P2A (Person to Account): Using Account Number + IFSC Code.
- P2P (Person to Person): Using Mobile Number + MMID (Mobile Money Identifier).
Why IMPS is Important
- Speed: Money is credited within seconds.
- Availability: Works round the clock.
- Emergency: Best for urgent payments when NEFT batches are closed.
Where is IMPS Used?
- Net Banking: Standard option for fund transfer.
- Mobile Banking: The backend of many mobile transfers.
- Credit Card Bill Payment: Often uses IMPS for instant credit.
How to Use IMPS
Step 1: Add Beneficiary
In Net Banking, add the receiver’s Name, Account Number, and IFSC. (Wait for 30 mins for activation).
Step 2: Select Transfer
Choose “IMPS” instead of NEFT.
Step 3: Send
Enter amount and Remarks. Confirm with OTP. Money is sent instantly.
Example of IMPS
Sender: Ravi (SBI)
Receiver: Amit (HDFC)
Action: Ravi sends ₹5,000 via IMPS.
Result: Amit receives the SMS “Acct credited with ₹5,000” within 5 seconds.
Common Problems or Errors
- Timed Out: If the transaction times out but money is cut, it is usually reversed within 1-2 working days.
- Wrong Account: IMPS is instant and non-reversible. If you send it to the wrong account number, recovering it is very difficult.
Important Things to Remember
- Transaction Limit: Usually ₹2 Lakhs to ₹5 Lakhs (varies by bank).
- Charges: Unlike UPI (which is free), banks usually charge a small fee (₹2 to ₹15 + GST) for IMPS transfers.
- Managed by NPCI.
Frequently Asked Questions
What is MMID in IMPS?
MMID (Mobile Money Identifier) is a 7-digit random number issued by the bank. It allows you to receive money using just your mobile number, without sharing your account number.
Is IMPS faster than NEFT?
Yes. IMPS is real-time (instant). NEFT operates in half-hourly batches, so it can take 30 minutes to a few hours.
What is the maximum limit for IMPS?
NPCI allows up to ₹5 Lakhs, but individual banks often set their own limits (e.g., ₹2 Lakhs) based on customer profile and channel (App vs Net Banking).
Can I stop an IMPS transaction?
No. Once you click send and the money leaves your account, it cannot be stopped or reversed because the settlement happens instantly.
Is IMPS available on holidays?
Yes, IMPS is available 24×7, 365 days a year, including Sundays and Bank Holidays.