IMPS means Immediate Payment Service in the Indian banking system terminology. It is a money transfer mechanism provided by the country’s top bank, Reserve Bank of India, and National Payments Corporation of India (NPCI). It was launched in 2010 by NPCI with the help of a pilot project with four central banks, and today IMPS includes more than 150 banks. Immediate Payment Service (IMPS) is a real-time electronic fund transfer method through which money is instant.
It was credited to the account of the recipient/beneficiary. IMPS transfer is done on a 24/7 basis all 365 days a year. This can also be done on Sundays and other bank holidays. Through IMPS, the interbank transfer can be initiated through multiple channels like mobile banking, internet banking, SMS, ATM, etc. IMPS services are managed by the National Payments Corporation of India (NPCI) and come under the Reserve Bank of India (RBI).
For IMPS transfer through net banking, the remitter has to register the beneficiary by providing all the details such as bank account number, IFSC code, bank name, a bank branch, etc. The Indian Financial System Code (IFSC) is an 11-digit alphanumeric code assigned by RBI to all bank branches to monitor and streamline the fund transfer process through IMPS.
Every bank has a different transaction charge for IMPS transfer, and this charge depends only on the amount that is sent. The critical feature of IMPS is that it is available for use at all times. It transfers funds instantly and is a good banking platform in case of an emergency. The transaction charge of this platform is also deficient, and the transfer limit is also relatively high, about 2 lakh rupees per day. Apart from this, IMPS is also available on mobile, which makes it more convenient.