Immediate Payment Service (IMPS) is a money transfer system in the Indian banking system. It allows you to make 24/7 real-time electronic interbank funds transfers like the existing RTGS and NEFT facilities. Users can use the facility through multiple channels, including ATMs, mobile phones, SMS, and the internet.
The system is built on the NFS, National Financial Switch, managed by the National Payments Corporation of India. It is approved by the RBI – Reserve Bank of India. The payment service was launched in 2012 as a program by NPCI, with only four banks offering the facility. These include the Bank of India, State Bank of India, ICICI Bank, and Union Bank of India. However, the number has grown to more than 150 banks.
NPCI expanded IMPS to include HDFC Bank, YES Bank, and Axis Bank the same year. On November 22nd, 2012, IMPS went public, and it now comprises 945 Indian banks.
What Is IMPS in Banking?
As mentioned earlier, IMPS is a payment service that ensures users can make real-time interbank funds transfers similar to NEFT. However, unlike the NEFT service, users can transfer funds instantly, even on holidays, using IMPS.
IMPS looks to make electronic money transfer easier and more convenient for users. To provide support to the RBI’s goal of digitization of retail payments, IMPS has built a foundation with a complete collection of mobile banking services.
As a result, there are around four main participating parties in one IMPS transaction, including Remitter, Beneficiary, Banks, and National Financial Switch.
Remitter
This party is the one that initiates the transaction. They are involved in sending the funds from their bank account to another. This can be an individual or a corporation.
Beneficiary
The beneficiary is the receiver of the funds. They are on the other side waiting to get the money from the remitter’s bank through the IMPS service. They can also be individuals or corporations.
Banks
The banks are the institutions involved in the transaction. The IMPS service is connected to the banks. Once the remitter initiates the transaction, it is sent from their banks to the receiver’s bank instantly with IMPS.
National Financial Switch
The National Financial Switch (NFS) is a service that enables cardholders of each participating member bank to use the NFS networked cash recyclers. The objective is to ensure that non-scheduled cooperative banks and regional rural banks have access to the vast network of ATMs in the country. In that case, remitters can initiate IMPS transactions using these ATMs across the country.
How to Transfer Funds Using IMPS?
If you start an IMPS transaction, the steps are pretty straightforward. To initiate an IMPS transfer in 2025, you can use mobile apps, internet banking, SMS, or ATMs. Most transfers can now be completed simply by entering the recipient’s mobile number and bank name — no MMID or IFSC code required. This makes IMPS faster and more user-friendly than ever before.
Mobile Banking
In order to initiate an IMPS transfer via mobile banking, you should log in to your bank's mobile app or use USSD/SMS facilities if available. Most banks already allow you to transfer money just by entering the recipient's bank name and mobile number, without the requirement of MMID or IFSC numbers. Registration will typically be once only, and then you can transfer funds at any time and place.
Internet Banking
Log in to your bank’s online portal, select IMPS as the transfer method, and enter the recipient’s mobile number and bank name or their account number and IFSC code. The process is fast, secure, and available 24/7.
ATM
If you lack internet or mobile banking, you can still transfer via IMPS through an ATM. Insert your card, go to the IMPS option, and navigate through to enter recipient information and approve the payment. Although MMID was previously required, most banks now provide mobile-number-based transactions through ATMs as well.
Whatever method you decide to use, the general procedure for making an IMPS transfer is as follows.
Choose your preferred channel (mobile app, internet banking, SMS, ATM).
Enter the recipient’s mobile number and bank name (or account number and IFSC code, if required).
Enter the amount to transfer.
Provide a short payment description (optional).
Confirm the transaction with your PIN or password.
Funds are transferred instantly, and both sender and recipient receive a confirmation SMS or app notification.
IMPS Key Features
IMPS has different key features that help it facilitate instant remittance. In that case, here are five key features of the payment service.
On The Go 24/7 Fund Transfer
One of the main key features of the IMPS is on-the-go funds transfers. You can transfer money to another bank even when commuting to your office or back home.
Mobile and Internet Transfer
IMPS transfers can be done using your mobile bank app, SMS, or internet banking. So, depending on the device you want to use, you are good to go.
Instant Settlement of Funds
Once a transaction is initiated through IMPS, it is settled instantly. There is no wait, and the beneficiary receives funds instantly.
SMS Confirmation
The sender and receiver get an SMS confirmation once the IMPS transaction is completed.
Fast, Secure, and Convenient Transaction
IMPS payments are fast, secure, and convenient for both the sender and the receiver.
Important Things to Know About IMPS
When it comes to IMPS, there are a few things that you need to know, which have been highlighted in this section.
Activating IMPS on Your Bank Account
Most banks enable IMPS as one of the internet and mobile banking services. For utilizing it in mobile banking, you may have to go through one-time registration from your bank's application. But for internet banking and utilizing the ATM, individual registration is not normally required.
Most notably, you no longer need an MMID to send or receive money via IMPS — transfers can be initiated using the receiver's mobile number and bank name, or his account number and IFSC code.
Receiving Money using IMPS Without MMID
Since 2024, MMID-based transfers have been largely discontinued. You can receive money directly via your registered mobile number and bank name, or by submitting your account number and IFSC code. This reduces the process and minimizes handling multiple identifiers.
Linking Multiple Accounts to a Single Mobile Number
Although it is still possible to link multiple bank accounts with the same mobile number, MMIDs are no longer provided since they are no longer required for IMPS transfer. In case you are updating your mobile number, you should update it with your bank so that you will not be denied mobile banking and IMPS services.
Final Thoughts
This guide certainly gives you a good idea of what IMPS is and how to use it. The service is one of the fastest and safest funds transfer facilitators. It is a cost-effective mode of transferring a substantial amount of money in one transaction. The facility is available even without the presence of the internet, making it even more financially inclusive for individuals. In that case, it is a perfect way to go when you want an easy, fast, and secure funds transfer service.
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Frequently asked questions
What is IMPS Full Form?
IMPS means Immediate Payment Service. It is an India interbank electronic real-time fund transfer system through which customers can make money transfers immediately, 24/7, including bank holidays and weekends.
What is the IMPS limit?
Up to 2024, the Reserve Bank of India (RBI) has raised the IMPS limit to ₹5,00,000 per transaction through the mobile banking or internet banking platform. Internal bank policies could differ, though, but it's always advisable to check with your bank for the same.
Are IMPS and UPI identical?
No, IMPS and UPI are separate payment systems though both enable real-time money transfer. IMPS is operated by the National Payments Corporation of India (NPCI) and enables transfers based on mobile numbers, bank account information, or Aadhaar numbers. UPI, also designed by NPCI, enables fund transfers via a Virtual Payment Address (VPA) and supports more digital forms of transactions. To have a detailed comparison, read our article: IMPS vs UPI in Banking