What is IMPS: How to Transfer Funds Using IMPS?

Posted on Monday, May 27th, 2024 | By IndusInd Bank

In today’s fast-paced digital world, the convenience of instant fund transfers has become a necessity for individuals and businesses. Immediate Payment Service (IMPS) has emerged as a reliable and efficient option among the various available methods. IMPS offers a seamless way to transfer funds instantly, enabling users to send and receive money with ease. In this article, we delve into what is IMPS, what is IMPS transfer, and the steps involved in transferring funds using this service. 

What is IMPS? 

The meaning of IMPS is not very complicated. IMPS, or Immediate Payment Service, is a real-time Indian funds transfer system between banks that happens electronically. It was introduced by the National Payments Corporation of India (NPCI) to enable 24/7 immediate money transfers, including weekends and bank holidays. IMPS enables individuals to transfer money instantly from their bank account to another bank account using various channels such as mobile, internet banking, ATMs, and bank branches. Individuals and/or businesses can make use of their mobile phones or Internet banking methods to instantly send and receive money. As the name suggests, IMPS is a real-time money-transferring method that allows individuals and businesses to transfer money securely. It is the most convenient method to make payments, pay bills, send money to loved ones, etc. IndusInd Bank offers a seamless IMPS transaction facility.  

Features of IMPS 

Before you start using IMPS as a method of online money transfer, it’s important to familiarise yourself with its key features and considerations: 

• IMPS imposes a daily maximum limit of Rs. 5 Lakh on transactions, ensuring a balance between convenience and security for users 

• Transaction charges for IMPS lie between Rs. 5 and Rs. 15, as per the terms and conditions of respective banks. It is best to check with your bank for the applicable transaction charges 

• In addition to transaction charges, service tax may also be incurred. The service tax is levied as per the prevailing tax regulations stated by the government. The service tax may vary depending on the type of transaction and bank 

• IMPS operates round the clock. It enables users to transfer funds instantly between banks, regardless of time and location, ensuring convenience, accessibility, and real-time fund transfer options 

• IMPS is a secure gateway for interbank money transfers in India  

• IMPS is robust and employs security measures, such as encryption and authentication protocols, to ensure the safety of your financial transactions.  

• Using IMPS often proves economical as the service charge is easy on the pocket. 

Advantages of IMPS 

IMPS is one of the most used transaction tools for faster and more secure money transfers. The following are the advantages of using IMPS as your preferred financial transaction option: 

• IMPS is one of the fastest and most secure methods of transferring money across the country.  

• It transfers money in real-time, making it easier for people to send and receive money immediately, thereby making it one of the most preferred options. 

• Along with sending money fast it also takes care of security by employing necessary security measures wherein all the financial transactions are safe and secure. 

• IMPS transactions are not dependent on a specific platform. One can carry out IMPS transactions through mobile phones as well as internet banking. Thus, making it an accessible and more convenient option. 

• An individual or business can carry out an IMPS transaction at any time of the day. It is available 24*7, including weekends, public holidays, and even bank holidays.  

• Adding beneficiary of the financial transaction is very easy in IMPS. The user must enter the receiver’s mobile number and Mobile Money Identifier (MMID) to add a beneficiary. No need to enter details like account number, IFSC code, etc., thus making it simple and convenient. 

• Both the payer and payee receive instant notification once the IMPS transaction is successful. 

• Apart from using IMPS as a money transfer tool, it can also be utilised for paying merchant bills, receiving money, mobile banking transactions, and many more.  

Also read: IndusInd Bank Launches Internet Payment Gateway As A Part Of Its Payment Solutions Business 

How To Use IMPS? 

Using IMPS is very simple. The following is the step-by-step process of transferring funds using IMPS: 

• Register for IMPS: Visit your bank or use the mobile banking app to register for IMPS by linking your mobile number with your bank account and generating an MMID and MPIN. 

• Initiate Transfer: Log in to your mobile banking app or Internet banking portal and navigate to the fund transfer section. Choose the IMPS option and select the ‘Transfer Funds’ tab. 

• Enter Recipient Details: Enter the recipient’s MMID details and the amount to be transferred. Double-check the details to ensure accuracy. 

• Authenticate Transaction: Authenticate the transaction using your MPIN. In some cases, for additional safety, a One–Time Password is also required to authenticate the transaction. 

• Confirm and Send: Review the transaction details and confirm the transfer. Upon confirmation, the funds will be instantly debited from your account and credited to the recipient’s account. 

• Receive Confirmation: Both you and the recipient will receive instant confirmation of the transaction via SMS or email, providing reassurance that the transfer was successful. 

Thus, with this article, we have simplified the meaning of IMPS for our readers. We know that it has revolutionised the way we transfer funds by offering a secure, convenient, and instantaneous solution for interbank transactions. Whether you need to pay bills, transfer money to family or friends, or make business payments, IMPS ensures that your funds reach the intended recipient in real-time, eliminating the delays associated with traditional banking methods. IMPS makes the payment system efficient and streamlines financial transactions.   

FAQ’s 

1. Is IMPS available 24×7? 

Yes, IMPS is available 24*7, even on weekends, including bank and public holidays 

2. What are the transaction limits for IMPS? 

The daily maximum limit on IMPS transactions is INR 5 Lakhs 

3. How do I register for IMPS? 

To use IMPS, you need to register your mobile number with your bank and generate an MMID and MPIN. 

4. Can I transfer funds using IMPS to a beneficiary without a bank account? 

No, you cannot transfer funds to a beneficiary without a bank account 

5. How long does it take for an IMPS transfer to be processed? 

The IMPS money transfer happens instantly 

6. Are there any charges associated with IMPS transactions? 

IMPS transactions levy transaction charges and service tax. 

7. Can I use IMPS to transfer funds internationally? 

No, only domestic financial transactions can be done through IMPS 

8. What information do I need to provide for an IMPS transfer? 

You need to provide the beneficiary’s mobile number and MMID to carry out the IMPS transfer. 

9. Is it safe to use IMPS for fund transfers? 

Yes, using IMPS for fund transfers is very safe and secure 

10. Can I cancel an IMPS transaction? If so, how? 

No, IMPS transactions are immediate fund transfer services, so they cannot be cancelled or stopped. 

11. What should I do if my IMPS transaction fails? 

If the IMPS transaction fails, the money is credited back to the payer’s account (savings account or current account) within 2 days from the date of the transaction. 

12. Can I use IMPS for bulk transactions? 

IndusInd has a daily limit of INR 50,000 through IMPS. This limit may differ from bank to bank 

13. Is there a minimum balance requirement for using IMPS? 

The remitter needs to maintain their savings account or current account balance of more than the amount of which he intends to send the money to the beneficiary. 

14. ​​Click here to enter text.​What should I do if I accidentally send money to the wrong account via IMPS? 

Immediately bring it to the notice of the bank and request for transaction reversal.  

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.