What Is IMPS: How To Register, Benefits & Charges (2024)

The immediate payment service (IMPS) is a real-time interbank money transfer service provided by banks. Funds can be transferred 24×7 including weekends and holidays using IMPS.

IMPS can be done through electronically enabled channels like mobile, interest, short message service (SMS) and automated teller machines (ATM). The main aim is to make the transfers super easy and convenient for customers. IMPS built a full range of banking services to support the Reserve Bank of India’s (RBI) goal of electronification of retail payments.

How to Register for IMPS in 2024

• You need to register on the mobile banking service provided by your bank.
• You need to have the Mobile Money Identifier (MMID) and mobile banking personal identification number (MPIN) from your bank. Both the recipient and the beneficiary are required to have them.
• Download your banking mobile application from your bank to utilize the SMS facility if your bank has an SMS IMPS facility.

Steps to Send Money Using IMPS in 2024

You can transfer money through various methods like laptop/desktop/ tablet through internet banking. Smartphones can be used for Net banking or mobile applications, SMS with mobile phones and automated teller machine (ATM) with your ATM card.

The following steps are used to make an IMPS transfer.

Step 1: Choose the channel you desire and then log in with your credentials.

Step 2: You can enter the bank account number, Indian financial system code (IFSC), Aadhaar number or the MMID and mobile number of the beneficiary.

Step 3: Enter the amount you want to transfer.

Step 4: Enter the reason for the money transfer request.

Step 5: Now, you have to enter the personal identification number (PIN) to authenticate the request.

Step 6: Once the transaction is initiated successfully, the sender and the beneficiary will receive confirmation through SMS.

Requirements and Participants for IMPS transactions:

Registration of your mobile number with your respected bank and also for mobile banking application is the basic requirement for transferring and receiving money through the IMPS process. After the registration is done, you will get MMID and the MPIN number provided by your bank.

The MMID is a 7-digit identification number and the MPIN is a four-digit number password that applies for mobile banking. Now add your beneficiaries to your account and link their account details with your registered mobile number and obtain their MMID from your bank.

The beneficiary is required to submit an Aadhaar number, IFSC, bank account number, mobile number and MMID details to make an IMPS transaction.

Participants in IMPS are:

• Remitter – Remitter bank/Prepaid Payment Instruments (PPI)
• Beneficiary – Beneficiary bank/PPI
• National Financial Switch – National Payments Corporation of India (NPCI)

Features of IMPS:

• The IMPS transfers are safe and secure.
• It’s user-friendly on any smart device with an internet connection.
• One of the fastest modes of money transfer between bank accounts.
• The amount is instantly credited to the recipient without any delays.
• Customers don’t need to share bank details like bank account numbers to make transactions through IMPS.
• It’s a 24×7 service throughout the year.
• Once the transaction is complete the sender and receiver both get notified saying debited and credited.
• No charges are avail for using this service.
• The maximum transaction limit is INR 5 Lakh.
• You should have an ATM cum debit card.
• Register yourself with your bank to get SMS alerts.
• Some banks have their own application where IMPS transactions can be done swiftly.

IMPS Charges As Of 2024

Every transaction has certain fees associated with it. The charges depend on the amount transferred along with service tax at 18%. However, the fees depend on the individual bank’s discretion. The following are the charges applicable excluding Goods and Service Tax (GST) through IMPS transactions.

• INR 2.5 for transactions up to INR 10,000.
• INR 5 for transactions between INR 10,001 – INR 1 lakh.
• INR 15 for transactions between INR 1 lakh – INR 2 lakh.

IMPS for Business Uses

Fund transfer

There are two ways in which the fund transfer can be initiated with IMPS.

1. Mobile number and MMID: To make a transaction both the remitter and beneficiary need to register their mobile numbers with their individual banks. MMID and mobile number combined are linked to a unique account number.
2. Account Number and IFSC: In case the remitter can use mobile banking and the beneficiary’s mobile number is not linked or registered with his respective bank then the transfer can be done using the recipient’s account number and IFSC.

Commercial transactions

1. Check transaction Status: Remitter can easily check any deemed approved transaction status by just initiating a check status request.
2. Name Inquiry: The IMPS service allows name inquiry using the recipient’s details like bank account number, IFSC, MMID and mobile number.

IMPS Benefits for Businesses

The following are the benefits of using IMPS for businesses for banks, customers and the RBI.

Banks: IMPS is secure interoperability between banks and mobile operators. It’s a 24×7 available domestic fund transfer service. The transfer is cheap, fast and safe. IMPS provides beneficiary customers with foreign inward remittance facilities. It also allows additional services like Beneficiary Account validation to validate the beneficiary’s account before making a transaction. The remitter can also check the transaction which brings huge relief to customers.

Customers: IMPS is an instant and real-time fund transfer process. The daily limit of the transaction is up to INR 5 Lakhs. Customers can access the services through their mobile phones and net banking.

Reserve Bank of India: It motivates the RBI’S vision of Digital India with electronic automation of retail payments. It aims to build a strong foundation for an extended range of mobile banking services.

Bottom Line

IMPS services are secure and fast. It’s a 24×7 service throughout the year and is also available on holidays. All you need to do is register your mobile number with your bank account. Customers need to be careful and do not share details like debit/credit card numbers, card verification value (CVV) and one-time password (OTP) or passwords with unknown people.

Nikita is a Staff Writer for Forbes Advisor. Her career spans writing on personal finance with expertise in the cryptocurrency market. She’s fond of venturing into the unknown and counts finance, entertainment, and fashion as her top interest areas.

Aashika is the India Editor for Forbes Advisor. Her 15-year business and finance journalism stint has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC-TV18, Thomson Reuters, The Economic Times and Entrepreneur.