What is IMPS – Features, IMPS Full Form, Transaction Limits and Charges

17.Apr.2025
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Transferring money from one bank account to another has never been easier. There was a time when this process required a lot of hassle. However, with evolving technology and the rise of digital platforms, you can conveniently transfer funds to a bank account anywhere in India with just a few clicks.

Among the various modes available for fund transfers, this blog focuses on the Immediate Payment Service (IMPS). When you choose this option to send money, the beneficiary receives the funds almost instantly.

Read on to explore all the essential details about IMPS, such as IMPS’ full form, meaning, key features, transaction limits and transfer procedure.

What Does IMPS Mean?

The IMPS meaning is a payment procedure through which you can transfer and receive money instantly. You can do interbank transactions using digital banking services. Backed by the National Payment Corporation of India (NPCI), the IMPS service is available 24×7 in a year. Hence, it is a highly flexible fund transfer service available through channels such as SMS, ATMs, mobile banking, and internet banking.

Working of Immediate Payment Service

For IMPS transfer, ensure you have the bank account number and IFSC code. Additionally, provide the unique Mobile Money Identifier (MMID), Aadhaar number, recipient details and the sender’s mobile number.

Another way to make transfers is through online banking. Log in to your internet banking or mobile app using your ID and password. Once logged in, select the beneficiary for a transfer or opt for a one-time transfer. You can complete IMPS transactions using either the 7-digit code or the bank account details along with the IFSC details.

What are the Features of IMPS?

The following are the various benefits of the IMPS payment service:

Immediate Transactions: With IMPS, you can transfer money instantly, irrespective of the time or location.

Multiple Transaction Methods: You can make an IMPS transaction using mobile phones, internet banking services, SMS, or ATMs.

24/7 Availability: This payment service is available day and night, including holidays and weekends.

Safe Transfers: As IMPS uses a 2FA or two-factor authentication method, it is totally safe to transfer funds.

Transaction Types: IMPS comes with two types of transactions: P2P or person-to-person and P2A person-to-account transfers.

Global Money Transfer: You can transfer funds from overseas to an Indian bank account via a money transfer provider for IMPS transfer.

Difference Between IMPS vs NEFT vs RTGS

To clearly understand the different payment procedures, take a glance at the table showing the NEFT vs RTGS vs IMPS difference:

Parameters	IMPS	NEFT	RTGS
Minimum and Maximum Transfer Amount	For IMPS transactions, you can start from ₹1 and go up to ₹5 lakhs.	For NEFT, you can start from ₹1 with no maximum limit.	For RTGS, you need to maintain a minimum transfer value of ₹2 lakhs. There is also no upper limit.
Settlement Type and Speed	IMPS enables instant fund transfers and operates on a one-on-one settlement basis.	This process operates using a batch settlement system where the whole procedure happens in batches and a specific time frame to complete.	RTGS is also a one-on-one settlement system. This transfer method ensures instant fund transfer at the time of initiation.
Mode and Process	For an IMPS transaction, you must exclusively use internet banking or mobile banking.	For NEFT, both online and offline modes are available. This provides flexibility in choosing your preferred transfer method.	For RTGS, both online and offline modes are available, providing flexibility in choosing your preferred transfer method.
Service Availability	IMPS is available around the clock.	NEFT also provides round-the-clock accessibility for customers.	RTGS availability varies depending on bank hours. This is why this payment service restricts users’ access during specific times of the day.
Transaction Speed	IMPS ensure instant transactions.	NEFT transactions take up to 2 hours to process, making them relatively slower than RTGS and IMPS transfers.	RTGS transactions take about 30 minutes, which is faster than NEFT.

How to Transfer Money Through IMPS?

Here is a step-by-step guide on transferring money through IMPS:

P2P Transfer

In this case, you need a mobile number and MMID (Mobile Money Identifier). MMID is a 7-digit code that is linked to your mobile number. This code generation is a one-time procedure, and a single mobile number can be linked to multiple MMIDs. Here is how you can opt for an IMPS transfer using this process.

First, log in to the IMPS-associated mobile or online banking app.
Find the fund transfer option, choose IMPS and select P2P transfer.
Carefully enter the beneficiary’s mobile number and the unique 7-digit MMID.
Enter the transfer amount and verify the transaction, choosing any checking process (PIN or 2FA).

P2A Transfer

With a P2A transfer, both you and the recipient must register your mobile numbers linked to your respective bank accounts and obtain the 7-digit code.

Visit your bank’s website and go to the fund transfer menu.
Enter the recipient’s details, including the bank account number and IFSC.
Once the details are uploaded, you can go to the fund transfer option and choose IMPS transfer.
Click on the P2A option and select the recipient.
Enter the amount and verify the whole process.

IMPS Transaction Limits and Service Charges

According to the National Payments Corporation of India (NPCI), there is a daily IMPS transfer limit of ₹5 lakh per account. However, it varies from bank to bank. It is important to check your bank’s specific IMPS transaction limit before opting for this service.

Banks impose charges on IMPS transfers only for outward remittances, while inward IMPS transactions remain free. However, these charges vary from bank to bank, as well as the transfer amount and applicable GST.

The Final Thought

IMPS, full form, Immediate Payment Service, is a fast, secure, and convenient way to send money instantly from your savings or current account. With multiple transaction methods, easy-to-use payment procedures, and 24/7 availability, it ensures seamless banking. Whether using the P2P or P2A method, IMPS simplifies digital payments, making fund transfers effortless while enhancing financial accessibility and convenience.

All you need is a savings account or current account with either online banking, mobile banking, or both services attached. To open a savings account, opt for Torus Digital. We offer 7.75% interest on our savings account. Download the Banking App today!