Umesh Kurmi is a semi-qualified Chartered Accountant from the Institute of Chartered Accountants of Nepal. He has seven years of experience.
IMPS Full-Form & Its Meaning in Banking
Immediate Payment Service is the full form of IMPS. IMPS is another real-time payment service, however, it differs in that it is available 24 hours a day, seven days a week, and even on holidays. You can transfer comparably smaller sums, up to Rs. 5 lakhs, instantaneously using IMPS.
As a result, IMPS may be thought of as a fund transfer channel that combines the greatest qualities of both RTGS and NEFT. You can send as little money as you want, whenever you want, with quick results. Although most IMPS services are used online, a few banks also provide SMS services. Check with your bank to check if SMS IMPS transfers are supported.
The National Payments Corporation of India provides the IMPS service (NPCI). Customers can use their services to transfer payments between banks and issuers of Prepaid Payment Instruments (PPIs). PPIs are devices that allow you to use the value contained in the PPI to purchase products and services or conduct fund transfers. Smart cards, magnetic stripe cards, digital wallets, and vouchers are all instances of PPIs. Individuals without bank accounts can use PPI to send money using IMPS.
IMPS can be used by anybody, anywhere to make a payment. For example, if both parties are registered IMPS users with their respective banks, one can pay the food bill to the shop owner using a mobile phone. Similarly, a taxi fare can be paid directly to the taxi driver via IMPS. Some of the examples of IMPS are:
- Axis Bank NEFT RTGS IMPS
- Bank Of Baroda NEFT RTGS IMPS
- Canara Bank NEFT RTGS IMPS
- HDFC Bank NEFT RTGS IMPS
- ICICI Bank NEFT RTGS IMPS
- Indian Overseas Bank NEFT RTGS IMPS
- IndusInd Bank NEFT RTGS IMPS
- Kotak Mahindra Bank NEFT RTGS IMPS
It can be done with the help of the iMobile App, internet banking, or SMS. The IMPS service allows you to rapidly access your bank account and transfer funds. When you request a fund transfer through your mobile phone/internet banking, the beneficiary account is immediately credited.
The following is a list of India's top ten mobile banking applications:
- ICICI iMobile Application
- HDFC MobileBanking App
- State Bank of India YONO App
- HDFC PayZapp
- Bank of Baroda M-Connect Plus App
- Axis Mobile App
- Kotak- 811 & Mobile Banking App
- IDBI Go Mobile+ App
- CANDI- Mobile Banking App
- PNB ONE Mobile Banking App
What is the Process of IMPS Login & Transfer?
To send money via IMPS, you must first sign up for the bank's mobile banking service and obtain a Mobile Money Identifier (MMID) and MPIN from the bank. Ensure that your beneficiary or recipient has the MMID as well.
The procedure for transferring IMPS funds via net banking is as follows:
- Log into your bank's net-banking portal;
- Add an IMPS beneficiary by entering the beneficiary's account number, account type, IFSC Code, name, and contact information;
- Once your bank confirms that the beneficiary has been added, go to Fund Transfer and select the beneficiary to whom you want to send funds.
- After that, the beneficiary's account information will appear, and you can enter the Amount and Remarks (optional). After you confirm the payment, your funds will be transmitted quickly using IMPS.
The procedure for sending an IMPS payment using mobile banking is as follows:
- Log into your bank's mobile banking application;
- If the beneficiary has not already been added (the process of adding a beneficiary has been described above), click on the Send Money/Fund Transfer tab and select the IMPS option;
- Then, enter the Beneficiary's mobile number, the amount, and the beneficiary's Mobile Money Identifier;
- Once the beneficiary has been added, click on the Send Money/Fund Transfer tab and select the IMPS option; once the beneficiary has been added, click on the Send Money/Fund (MMID).
Your money will be sent after you validate your Mobile PIN, and the bank will give you a confirmation text message with the transaction number. You can use that transaction number for providing comments, making inquiries, or filing complaints.
Furthermore, to receive money via IMPS, simply supply the payer with your cell number and Mobile Money Identifier (MMID), and the payer will be able to send you money via IMPS. If the payment is paying you using IMPS net-banking, you must supply the payer with your account information, such as account name, account number, IFSC code, and so on, for the payer to add you as a beneficiary.
IMPS is a service that allows you to send money within INDIA in INR currencies exclusively. The maximum amount that can be transferred per transaction, according to the NPCI circular, is Rs 2 lakhs. Any transaction that exceeds Rs 2 lakhs will be rejected and paid back to your account.
The RBI increased the daily transaction limit due to its growing popularity and prominence as one of the most extensively utilized payment systems. The daily transaction limit for instant domestic IMPS funds transfers has been raised to Rs. 500,000, up from Rs. 200,000 previously.
When a user uses the IMPS payment service, the bank charges a fee. The following fees may differ from one bank to the next.
- Less than or equal to Rs. 10,000: Rs. 2.5
- More than Rs. 10,000 and up to Rs. 1 Lakh: Rs. 5
- More than Rs. 1,00,000: Rs. 15
GST at the rate of 18% is applicable on all monetary exchanges.
IMPS Transfer Time
Transactions in the IMPS system can be initiated at any time and from any location. The IMPS service is available 24x7. Due to fraudulent activities and theft, certain banks may have restricted IMPS service from 8 a.m. to 8 p.m.
IMPS Reference Number
When consumers register for Mobile Banking, they are given a seven-digit number called MMID. In order to complete an IMPS transfer effectively, both the remitter and the beneficiary must have an MMID. You can make the transfer without committing any errors or experiencing any issues by utilizing the cellphone number and the MMID.
IMPS Reference Number Tracking
You might follow your IMPS reference number online by signing into your mobile banking account and choosing the "Know your MMID". You can also track your IMPS reference number by sending an SMS to the number supplied by your bank. Your MMID will be sent to you through text message.
Advantages of IMPS
- Domestic cash moves instantly
- Available 365 days a year, 24 hours a day, seven days a week
- A safe and secure environment
- Easily reachable
- Mobile, Internet, and ATM services are available
- You have a variety of input options to pick from, such as IFSC/MMID/Account no./AADHAAR no.
- There is an assortment of access systems to choose from
Disadvantages of IMPS
- The transaction limit might contrast starting with one bank then onto the next.
- The transaction fees might vary starting with one bank then onto the next.
- IMPS transactions are currently subject to an 18% GST levy.
- For an IMPS money transfer transaction, consumers must have adequate funds in their account, including transaction fees. The transaction fails if the balance is inadequate.
What is the difference between NEFT and IMPS?
The Reserve Bank of India (RBI) manages NEFT, whereas the National Payments Corporation of India (NPCI) manages IMPS, which is a money transfer facility (NPCI). Both of these ways of fund transfer are secure and regulated by the Reserve Bank of India.
Are IMPS and UPI the same?
UPI (Unified Payments Interface), designed by NPCI, is a popular instant payment settlement system governed by the Reserve Bank of India. IMPS (Immediate Payment Service) on the other hand, allows for instant interbank electronic transmission.
Which is best IMPS or NEFT?
If you need to send money quickly and don't want to deal with the inconvenience of establishing a beneficiary, IMPS is the way to go. If you need to send a substantial quantity of money, though, NEFT is the preferable option.
Can I transfer 50000 through IMPS?
You can only transfer Rs. 50,000 each day without adding a recipient.
Can we transfer 5 lakhs through IMPS?
To use this service, you must first register for mobile banking. To help transactions go smoothly, IMPS needs an IFSC code or an Aadhar number. The maximum transaction limit for IMPS was previously Rs 2 lakh, however, the RBI has amended its limits. This payment mechanism now allows users to deposit up to Rs 5 lakh.
Can I transfer more than 2 lakh online?
The Reserve Bank of India (RBI) has increased the transaction limit from Rs 2 lakh to Rs 5 lakh in response to the growing popularity of the Immediate Payment Service (IMPS) mechanism of money transfer.
Do we need to add beneficiaries for IMPS?
Each IMPS transaction is subject to a transaction fee. It is necessary to include a beneficiary: Before beginning any type of fund transfer transaction using IMPS and the IFSC code, you must first add a beneficiary/payee. Transfers are also not possible until the beneficiary has been activated.
What is IMPS in bank transactions?
Immediate Payment Service is the full form of IMPS. The Interbank Mobile Payment Service (IMPS) is a mobile-based interbank electronic payment transfer service. Other techniques of expansion, like ATMs and Internet banking, are being used.
What are GST charges on IMPS?
- IMPS up to ₹10000: ₹2.50 + GST
- IMPS up to ₹10000 to ₹1 Lac: ₹5 + GST
- Above ₹1 Lac: ₹15 + GST
GST at the rate of 18% is applicable on all monetary exchanges.
Is IMPS Free?
Charges will apply if the IMPS is done through a mobile application, however, an IMPS Charge of 5 + GST will be assessed if the IMPS is done through a bank's net banking facility.
How can I cancel the IMPS transaction?
No. It is because IMPS is an instant transfer facility. Payments can't be halted or dropped whenever they are started.
Is the beneficiary name important for IMPS?
Beneficiary name, account number, branch name, and IFSC code are required for an IMPS transfer. Customers can also use IMPS to send and receive money by providing a Mobile Money Identification Number (MMID) and a mobile number. Customers can transmit funds using both MMID and IFSC.
Is the IFSC code required for IMPS?
IMPS - Using IMPS, the sender can transfer funds to the beneficiary bank in real-time. To process all IMPS transactions, an IFSC code is required.
What is the IMPS reference number in SBI?
With each IMPS transfer, you will also obtain a unique SBI IMPS Reference number, which you can use to track the transaction's status. When a remitter files a fund transfer request online, an SMS with the reference number is sent to both the remitter and the beneficiary.
What is the SBI UTR number?
The UTR number stands for Unique Transaction Reference number. In India, it is used to identify a specific exchange. It is a one-of-a-kind number generated for perceiving any asset movement or transaction conducted by the bank that promotes the exchange.
What is 12 digit IMPS reference number?
The correct transaction ID is UPI Transaction ID. The transaction reference number for IMPS transactions is 12 digits long, and the first digit for all IMPS transactions completed in 2021 will be 1. For example 100412786589 and 100509876498.
How does IMPS work in India?
Currently, IMPS Person-to-Person (P2P) money transfer needs the Remitter customer to use the Beneficiary Mobile Number and MMID to make the transfer. To transmit or receive payments using IMPS, both the Remitter and the Beneficiary must register their mobile phone with their respective bank account and obtain an MMID.
How can I apply for IMPS in SBI?
- Visit www.onlinesbi.com
- Navigate to the 'Profile' area and select Manage Beneficiary
- Choose 'IMPS Beneficiary'
- Fill up the blanks with the beneficiary's information
- Approve the beneficiary by entering the OTP (one-time-password) that was sent to your registered mobile number
How can I track my money transfer?
- Finish your transfer. You can begin tracking a transfer after it has been sent.
- Examine your receipt. Look for a reference, confirmation, order, transaction, or another number with a similar name.
- Make contact with the sending company.
- Sign up to get notifications.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2022 Umesh Kurmi