What is IMPS and How to Transfer Funds using IMPS
9 February, 2024
Synopsis
IMPS offers 24/7 inter-bank transfers using your bank’s mobile banking channels.
The IMPS meaning is further exemplified through its features like a per transaction limit of ₹5 lakh, varied transaction charges, and ease of access through multiple platforms.
You can send money via IMPS using the beneficiary’s account details or MMID.
In the ever-evolving landscape of digital banking, Immediate Payment Service (IMPS) has emerged as a cornerstone in the Indian financial ecosystem. This article delves into the meaning of IMPS, its features, advantages, and how to effectively utilise this innovative payment service.
What is IMPS?
Immediate Payment Service is a facility added to Mobile Banking Service. It facilitates fund transfers to the beneficiary account with a participating bank using the beneficiary’s mobile number and MMID or account number and IFSC. This interbank electronic fund transfer system is managed by the National Payments Corporation of India (NPCI). This system is pivotal in facilitating real-time transactions, allowing users to transfer funds with both convenience and security. With IMPS, individuals have the flexibility to make payments, settle bills, send money to friends and family, and execute various financial transactions both swiftly and efficiently.
Types of IMPS Transfers
Before we dive into the process of IMPS transfers, understand that IMPS can be broadly categorised into two types:
IMPS via Mobile Number and MMID
You can send money to a beneficiary using their mobile number and MMID. MMID stands for Mobile Money Identifier. It is a seven-digit code linked to a unique mobile number. You can ask your bank to provide the MMID. Similarly, your beneficiary can request their bank for their MMID and share it with you so that you can make the transfer. Note that for making IMPS using MMID, both you and your beneficiary must register their mobile number with the respective bank.IMPS via Account Number and Indian Financial System Code (IFSC)
You can use the beneficiary’s account details, i.e., their bank account number, Indian Financial System Code (IFSC) and bank name and branch to send money using IMPS. This method is viable if the beneficiary has not registered their mobile number with their bank account.
How to Transfer Money Via IMPS?
Here are different ways you can transfer money using NPCI’s Immediate Payment Service:
Via Mobile Banking or NetBanking
Log into your bank’s Mobile Banking or NetBanking platform.
Navigate to the ‘Fund Transfer’ or similar option.
Select the type of IMPS transfer, whether sending to MMID or Account Number.
Select the beneficiary’s MMID or Account Number.
Enter the amount.
Use the MPIN or transaction password to authenticate the transaction.
Via ATMs
Visit your bank’s ATM and locate the IMPS fund transfer option on the ATM screen.
Enter the beneficiary’s mobile number and MMID and the transfer amount.
Authenticate the transaction using your Debit Card and ATM PIN.
Via SMS
Some banks may allow you to send money via text message. Write a text message in the format provided by your bank and send it to the number provided by the bank. Typically, for SMS IMPS transfers, you will need the beneficiary’s MMID.
Click here to transfer funds through PayZapp on your IOS phone.
Click here to make money transfer online through PayZapp on your Android phone.
Key Features of IMPS
When considering what is IMPS, it is crucial to understand its distinctive features and how they benefit users:
Daily transaction limit: One of the defining aspects of IMPS is its daily transaction limit. IMPS transactions are capped at a maximum of ₹5 lakh per transaction.
24/7 inter-bank transfer: One of the key things in IMPS meaning is its 24/7 inter-bank transfer capability. It provides a robust and real-time fund transfer option that functions continuously, allowing almost instant fund transfers between banks regardless of time and location.
Multiple modes: You can transfer money via IMPS using Mobile Banking, NetBanking, ATM and SMS.
Advantages of IMPS
Here are the benefits of sending money via IMPS:
Fast, safe, and reliable: Known for its immediate fund transfer capability, IMPS is also highly secure, providing a reliable platform for transactions.
Accessibility: IMPS is accessible through various channels like mobile apps, internet banking, and even ATMs.
Instant notifications: Both sender and receiver get real-time notifications, adding transparency to transactions.
Ease of beneficiary addition: Adding a beneficiary is straightforward, requiring minimal details.
Versatility: Beyond mere fund transfers, IMPS can be used for merchant payments, mobile banking transactions, and more.
IMPS Transaction Charges
Another crucial aspect of understanding what is IMPS involves its transaction charges. These charges can vary according to the policies of different banks. As an HDFC Bank customer, you should be aware of charges for IMPS transactions. The fee structure for outward IMPS transactions is as follows:
For transactions ranging from ₹0 to ₹1,000, the charges are ₹3.50 plus applicable GST.
For transactions between ₹1,001 and ₹1,00,000, the fee is ₹5 plus applicable GST.
For transactions exceeding ₹100,000, the charges are ₹15 plus applicable GST.
It is important to note that these charges apply only to outward IMPS transactions. Inward IMPS transactions remain free of charge.
Final Note
IMPS stands as a testament to India's growing prowess in digital banking, offering an array of benefits like speed, security, and convenience. Understanding what is IMPS and how it functions is crucial for anyone looking to navigate the modern financial landscape. Whether it is for IMPS payments or interbank transfers, this system ensures efficient and hassle-free transactions, solidifying its place as a preferred choice for millions in India.
Faster Money Transfers with PayZapp
In the realm of digital finance, HDFC Bank’s PayZapp emerges as a comprehensive and safe application, effortlessly harmonising with renowned fund transfer mechanisms such as the Unified Payment Interface (UPI). All you need is the beneficiary’s UPI ID or mobile number linked to UPI. You can also scan the QR code from their UPI application to send money. Download PayZapp now!
*Terms and conditions apply. 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.
