You may have had a bank account for years now. You may even have sent and received money through electronic money transfer methods like National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) or IMPS. However, do you know the finer details of these fund transfer channels?
If you answered no to that question, this article can help you. Here, we discuss the fundamentals of IMPS fund transfers — like their charges, timings, key features, transaction limits and more.
What is IMPS?
The full form of IMPS is Immediate Payment Service. It is a method of electronic money transfer that all banks in India offer today. As the name indicates, it is best suited for any bank account holder who wishes to send or receive money immediately. The National Payments Corporation of India (NPCI) offers this service in India.
IMPS transfers have a few distinct features that make them a crucial part of the digital financial ecosystem. These features include the following:
- 24/7 Availability
While traditional banking methods are restricted to business hours, online IMPS payments operate round the clock. This includes weekends and banking holidays (for online transfers). This makes it highly convenient for urgent payments.
- Transfer Speed
Unlike NEFT, which is processed in batches, IMPS transactions are processed in real time. This is why IMPS allows instant money transfers within seconds. This makes it one of the fastest payment modes in India, along with the Unified Payments Interface (UPI) option.
- Transaction Security
IMPS transactions offered by the NPCI are highly secure because they incorporate multi-factor authentication methods like mobile numbers, MMIDs, OTPs and more. Advanced encryption and fraud detection mechanisms prevent instances of unauthorised access.
- Easy Accessibility
You can access the IMPS system through multiple banking channels like mobile banking applications, net banking and ATMs, among others. Thanks to this flexibility, you can transfer funds instantly without having to depend on a single platform alone.
IMPS Transfer Limit Per Day
IMPS transfers are typically suitable for smaller transactions. So, the Reserve Bank of India (RBI) has set a daily transaction limit on the IMPS transfer amount. Earlier, it was set at ₹2 lakhs. However, this sum has now been increased to ₹5 lakhs.
That said, different banks may have additional limits for IMPS transactions made via internet banking or mobile banking services. The limits may also differ for individual and business accounts. You can contact your bank to check for any such additional limits that you need to be aware of. This way, you can plan any fund transfers and avoid the hassle of learning about the restrictions during a financial emergency.
IMPS Charges
Before you initiate an IMPS transfer via mobile banking or otherwise, you need to be aware of the transaction charges involved. Typically, inward remittances via IMPS are always free. So, if you receive money through this electronic fund transfer method, you need not worry about paying any charges.
However, if you are sending money to a recipient, you need to know that your bank may levy additional charges for these transactions. The fees may vary from one bank to another and typically depend on the transaction amount. So, ensure that you contact your bank and know these details beforehand. These charges may also be accompanied by additional taxes like GST.
IMPS Transfer Timings
- Availability: 24/7 including weekends and public holidays
- How IMPS differs from NEFT and RTGS in terms of timing
- Processing time: near-instant vs. delays in exceptional cases
IMPS Wallet Number & Its Role in Transactions
The IMPS wallet number is also called the Mobile Money Identifier (MMID). It is a distinct code with seven digits. Banks assign and link each registered mobile banking account with an MMID. This makes MMIDs crucial for fund transfers initiated using mobile banking services.
You can use your IMPS wallet number to receive funds instantly via mobile bank account transfers. Similarly, if you have the beneficiary’s IMPS wallet number, you can use it to make instant transfers to their account. This is how MMIDs make IMPS transfers via mobile banking easier.
It’s easy to find your MMID. You only need to log into your mobile banking account and choose the option to generate or know your MMID. Alternatively, you can also find this information by sending an SMS to your bank in the required format.
Before you use this detail, keep in mind that an IMPS wallet number is different from a bank account number. Check out how these two key identifiers differ from one another:
| Particulars | MMID | Bank Account |
| Definition | A unique 7-digit code assigned to a mobile number for IMPS transactions | A unique identifier for an individual’s bank account, used for various banking transactions |
| Purpose | Used for mobile-based fund transfers without needing full account details | Used for all banking transactions, including transfers, deposits and withdrawals |
| Format | 7-digit number | Typically 10-16 digits (varies by bank) |
| Linked to | Mobile number and bank account | Directly to the account holder |
| Uses | Needed for IMPS transfers using mobile banking | Needed for all types of banking transactions including NEFT, IMPS and RTGS |
How to Transfer Money Using IMPS?
You can transfer funds within the IMPS limits using various methods. Depending on the method chosen, you will need to have certain details of the beneficiary account handy. Some such key details include the following:
- Beneficiary’s Bank Details: This includes the account number, bank name, branch name and Indian Financial System Code (IFSC) of the beneficiary’s bank account.
- Beneficiary’s MMID: The MMID is the unique seven-digit code linked to a mobile phone number. It makes instant fund transfers like IMPS easier.
- Beneficiary’s Mobile Number: If you opt to send money instantly through IMPS fund transfers via ATMs, you also need the beneficiary’s mobile number.
Here is a handy step-by-step guide to help you understand how you can initiate bank-to-bank money transfers via IMPS using different modes.
- Mobile Banking
This is how you can use your mobile banking app to send and receive money via IMPS easily.
- Step 1: Sign into your mobile banking account.
- Step 2: Find the option to transfer funds.
- Step 3: Select IMPS from the options available.
- Step 4: Choose the MMID or account number of the intended beneficiary.
- Step 5: Enter the amount you wish to transfer:
- Step 6: Authenticate the transaction using your password, MPIN or any other relevant method.
- Internet Banking
Instead of using the IMPS option available on your bank’s mobile banking services, you can also access this facility through your internet banking account. Here’s how.
- Step 1: Log into your internet banking account.
- Step 2: Head to the section dedicated to fund transfers.
- Step 3: Select the IMPS fund transfer method to proceed.
- Step 4: Choose the beneficiary’s account number or MMID, as the case may be.
- Step 5: Enter the amount that needs to be transferred.
- Step 6: Verify the transaction with your OTP or any other method, as required.
- ATMs
If you are not very tech-savvy or if you prefer more conventional methods to transfer funds, you can even use ATMs for IMPS transactions. This is what you need to do.
- Step 1: Visit any ATM outlet offered by your bank.
- Step 2: Choose the IMPS option on the fund transfer screen.
- Step 3: Enter the MMID and mobile number of the beneficiary.
- Step 4: Enter the amount you wish to send them.
- Step 5: Authenticate the transfer using your debit card details and/or ATM PIN.
Security Measures and Precautions for IMPS Transactions
The IMPS transfers made through internet banking or mobile banking accounts are highly secure, thanks to the precautions and security measures put in place by the NPCI. Immediate funds transfers via IMPS are made safer through measures like encrypted authentication and one-time passwords (OTPs). These controls ensure that your private financial information cannot be easily accessed by unauthorised third parties.
That said, while there are several security measures in place to make sure that the IMPS money transfer option is safe to use, it also helps if you are aware of the common fraud risks and how to avoid them. Here are some such issues you must factor into your transactions.
- Phishing Attempts
Phishing is a kind of fraud where scammers attempt to obtain sensitive information from users through fake emails, phone calls or messages that resemble legitimate communication. They may obtain your passwords or other sensitive details and access your account. To avoid this, ensure that you do not open any suspicious links or respond to such communication attempts.
- Transaction Fraud
If you are using your mobile banking application or any other online service, cybercriminals may also attempt to commit transaction fraud to obtain the details of your account. To avoid falling prey to these attempts, ensure that you do not share your usernames and passwords with any third-party application or service.
- Technical Issues
While this may not necessarily be an attempt at fraud, technical glitches at your bank’s end may temporarily render the internet and mobile banking services more vulnerable to cyberattacks. You can minimise the negative impact of such issues by signing out of your mobile application after use and by ensuring you do not save any passwords online.
- Mobile Security Issues
Your mobile phone may be compromised by malware or other suspicious software. In that case, any sensitive information on your phone may be vulnerable to theft. This includes the credentials of your mobile banking account. To minimise the chances of this happening, avoid downloading apps from sources that are not trusted.
Best Practices for Secure IMPS Transactions
Overall, to ensure that your information is safe when you use the IMPS money transfer system, you can adopt the following best practices for safe online transactions:
- Use Secure Networks:
Avoid public WiFi in places like airports and other areas. Instead, use a secure internet connection for any instant fund transfers via IMPS.
- Enable Two-Factor Authentication:
To add an extra layer of security, you can activate the OTP or biometric verification option in your mobile banking application.
- Verify the Beneficiary Details:
Before you initiate the electronic money transfer, double-check the beneficiary’s account details like their account number and IFSC.
- Monitor Account Activity:
Check your bank statements and review your transactions regularly. This helps you spot any unauthorised transactions sooner rather than later.
- Avoid Sharing Sensitive Information:
Ensure that you do not share any sensitive details like your passwords and OTPs with others, whether accidentally or on purpose.
Comparison: IMPS vs. NEFT vs. RTGS vs. UPI
While the IMPS method is one way to send and receive money instantly, it is not the only way to transfer funds digitally. The Indian payments ecosystem also offers other options like NEFT, RTGS and UPI.
Want to know how each of these money transfer services differ from one another? Here is a table showing a detailed comparison of IMPS, NEFT, RTGS and UPI.
| Particulars | IMPS | NEFT | RTGS | UPI |
| Type of Settlement | Real-time settlement | Batch-wise settlement | Real-time gross settlement | Real-time settlement |
| Speed | Immediate | Within 2 hours at most | Immediate | Immediate |
| Minimum Limit | ₹1 | ₹1 | ₹2 lakhs | ₹1 |
| Maximum Limit | Generally ₹5 lakhs (but varies by bank) | No upper limit (varies by bank) | No upper limit (varies by bank) | Varies by bank, but the default limit is ₹1 lakh per day |
| Processing Mechanism | Processed individually in real-time | Processed in batches | Processed individually in real-time | Processed individually in real-time |
| Used By | Individuals and small businesses for emergency transfers | Individuals, businesses for bill payments | Individuals and businesses for high-value transactions | Individuals and merchants for digital payments |
| Best For | Urgent small transactions | Scheduled and routine transfers | Large-value fund transfers | Everyday payments and QR code-based transactions |
| Operated By | National Payments Corporation of India (NPCI) | Reserve Bank of India (RBI) | Reserve Bank of India (RBI) | National Payments Corporation of India (NPCI) |
| Linked To | Bank account and mobile number | Bank account number and IFSC | Bank account number and IFSC | Bank account, mobile number and UPI ID |
Conclusion
This wraps up our guide on all the important things you should know about IMPS via your internet banking account or mobile banking application. If you want to send or receive money immediately to meet any financial emergency, the IMPS payment method is one of the most useful fund transfer methods available today. However, ensure that you keep the IMPS limits and charges in mind before you initiate your transaction.
