You have to urgently transfer money to your relative or friend on a Sunday or a public holiday, what can you do? Using IMPS or Immediate Payment Service, you can easily transfer money to a person or merchant 365 days, 24×7! This article talks about IMPS or Immediate Payment Service. What is IMPS? Comparison of IMPS with NEFT and RTGS, How to transfer money through IMPS using the internet, How to transfer money through IMPS using mobile, How to transfer money through IMPS through SMS, how to pay the merchant.
What is IMPS?
Immediate Payment Service (IMPS) is an instant inter-bank money transfer service. Funds can be transferred in a jiffy and effortlessly using the internet.
- This service is available 24×7 throughout the year even on Sundays and public holidays.
- There are some charges to use IMPS. Some banks wave of IMPS but banks such as HDFC Bank, ICICI Bank charge such as.
- Above Rs.1 to Rs 1 Lakh – Rs.5 + GST(018%)=5.90 Rs
- Above 1 lakh to 2 Lakh – Rs.15 + GST = 17.70 Rs
- There is no minimum limit but the maximum limit through IMPS is Rs. 2 lakhs.
- IMPS is developed by NPCI or National Payments Corporation of India, an umbrella organisation for operating retail payments and settlement systems in India is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).
- Most of the banks support IMPS.
Funds can be transferred to a payee/beneficiary using one of the following methods using internet banking or mobile banking
- Bank account number and IFSC code
- Mobile number and MMID
Difference between NEFT, RTGS, IMPS and UPI
The differences between RTGS, NEFT and IMPS are in the. Our article, Difference between NEFT, RTGS, IMPS, UPI, explores it in detail.
- who manages it?
- the amount that can be transferred,
- when it will be transferred, instant/with delay
- When is it available: 24 X 7 or during banking hours?
- What are the charges for using it?
Which payment option is popular NEFT, RTGS, IMPS, UPI etc? is discussed in detail in our article How India pays: Cash, Cheque,NEFT,Cards etc
Terms associated with IMPS
- The account to which money is sent or fund is transferred or credited is known as the beneficiary’s account.
- Remitter is an account holder who sends the payment to the beneficiary account through Third Party Fund Transfer.
- IFSC or Indian Financial System Code is a special code given to every bank branch in India. It is an 11 digit code with the first 4 characters being the abbreviation of the Bank followed by a control character in the fifth place and then the branch code will represent the last 6 characters. For example, the IFC code of SBI Main branch in Kolkata is given the code SBIN0000001. All the banks have also been advised to print the IFSC of the branch on cheques issued by branches to their customers. IFSC, MICR, SWIFT Code, Difference between IFSC and MICR, IFSC and SWIFT for more details.
- MMID or Mobile Money Identifier is a 7 digit code issued allotted by your Bank for receiving funds through IMPS. The bank allots MMID when you register your mobile number and account number in which you wish to receive/send funds. If you have more than one account, you will get a separate MMID for each account. MMID is like your mobile account number. If you have MMID then no other details like account number, IFSC code is required. Whenever you want to receive money, you need to share your MMID with the sender.
How to use IMPS using NetBanking with the Bank account number and IFSC?
In this method, instant transfers are done to account holders holding accounts in the same or different bank using their account number and branch IFSC code. Transfer using IFSC can be done through internet banking or through mobile banking app.
- You need to first login to your bank website using your details.
- If the person you want to transfer money to is already added as a beneficiary, then you can proceed ahead with the transfer.
- If not, you need to register him/her as a beneficiary. To register a person as beneficiary select the option “Add Beneficiary”. Add his account number correctly, his branch IFSC code. If you are unaware of his IFSC code, it is easily available on the internet. You might get an OTP to confirm the registration of a beneficiary. If you are using mobile banking, no OTP will be generated. T
- Select the person you want to transfer money to, enter the amount and remarks if any.
- Confirm and verify the details
- The money is now transferred and the accounts will be immediately debited/credited.
- You will receive SMS confirmation along with transaction number for any future reference.
Video on how to pay to a beneficiary for third-party money transfer
The following 1 min video shows how to transfer IMPS beneficiary for money transfer for HDFC Bank using NetBanking. The process for other banks is similar.
Video on how to add beneficiary for third-party money transfer for IMPS, NEFT and RTGS
The following video shows how to add beneficiary for third-party money transfer such as IMPS, NEFT and RTGS.
- The beneficiary gets added in 30 minutes. Post addition, you can transfer money to any IMPS registered beneficiary as per the limits mentioned specified by the bank for example for HDFC Bank, Rs 25,000 in first 24 hours (Post that, the Third Party Transfer limits will apply)
How to use IMPS with MMID
How to transfer money using IMPS with MMID and mobile number
- Login with your details to internet banking or the mobile App of your bank.
- Select fund transfer and then IMPS.
- Enter beneficiary’s mobile number & MMID number.
- Enter the amount.
- You will have to enter your OTP or mPin to authenticate the transaction.
- The money is transferred and the accounts will be immediately debited/credited.
- You will receive SMS confirmation along with transaction number for any future reference.
Video which shows how to transfer money using IMPS with MMID and mobile number on Mobile
How to generate MMID
One can generate MMID through Mobile Banking App or website of the bank or NetBanking or Phone banking or SMS. The options available depend on the banks.
Example Generate MMID Mobile Banking of HDFC Bank
- Login to MobileBanking App or logon to m.hdfcbank.com from mobile internet browser
- Click on accounts section
- Click on Generate MMID
Example Generate MMID through NetBanking of HDFC Bank
- Login to NetBanking, and click on Generate MMID transaction in the left menu, under Request section
- Enter the details and Confirm
- MMID is generated for your account
Example Generate MMID through SMS of ICICI Bank
SMS MMID [space] last 4 digits of your account number to 9222208888.
You will receive an SMS carrying your 7-digit MMID for this bank account, e.g., 9229134.
How to Generate MMID for HDFC bank: Create a new SMS.Type MMID and send it to 5676712
Video on how to create MMID using different methods
IMPS Using ATM transfer and MMID
A person can go to the nearest ATM and send money to other people by entering the beneficiary’s debit card number. The money is transferred to the beneficiary instantly and he can withdraw the amount from another ATM. The limit is Rs 5,000 a day and Rs 25,000 a month. Currently, only six banks, Union Bank of India, Canara Bank, Lakshmi Vilas Bank, Andhra Bank, IndusInd Bank, Punjab National Bank offer this service and another six to seven are under the process of setting this up. Another way to transfer funds from ATM is by using IMPS. In this scenario:
- You need to enter your ATM pin.
- Select Fund transfer and then select IMPS.
- ATM will fetch your registered mobile number on the screen
- You will need the beneficiary’s mobile number and their MMID numbers to validate the transaction.
- Enter the amount for fund transfer
- Confirm the IMPS Fund transfer details
- Upon confirmation, amount is transferred to the beneficiary on a real-time basis
Both remitter and beneficiary get notifications for the transaction on their mobile.
IMPS using SMS
IMPS can also be availed without internet connection in case of emergency scenarios. You can also register yourself, add beneficiary, make payment through IMPS by sending a single SMS. Details for the same can be availed on the website of individual banks. Generally, the SMS is to be sent to the number given by the bank.
IMPS <Beneficiary Mobile No><Beneficiary MMID><Amount><MPIN>
For example for Central Bank
Type IMPS <Benef_Mob_ No> <Benef_MMID> <MPIN> Send to 9967533228
Advantages of IMPS
- Instant Money Transfer: Money can be instantly transferred to a person using account number or mobile number depending on the details available. Sending and receiving of payment is immediate, unlike NEFT.
- Easy to transfer: The steps to avail IMPS are easy and user-friendly. They require basic details like Name of the beneficiary, account number + IFSC code or MMID + mobile number and the amount.
- Available 24×7: IMPS can be availed 365 days 24×7 even after the banking hours and the ultimate benefit is that one can transfer on Sundays and on public holidays too.
- Charges for IMPS are The fee for transferring money is small.
- Various avenues available: Money can be transferred with net banking, mobile banking, SMS, ATM as per our convenience.
- Secure authenticated transactions: IMPS transaction is a secure transaction as banks have authenticated them with various factors like mobile number authentication, mPin and MMID numbers.
- SMS based. No internet connection required: In case of emergency when no internet connection is available IMPS can be availed via SMS easily. You will require the same details as required for mobile, internet IMPS.
- Transfer by NRI customers: NRI customers can also transfer money to India using IMPS.