How to Set Up and Use IMPS for Instant Payments

In an era where speed and convenience are paramount, instant payment solutions have become essential for managing finances. Immediate Payment Service (IMPS) offers a seamless way to transfer money securely and quickly between bank accounts. Whether you need to pay bills, send money to loved ones, or make business payments, setting up and transferring funds via IMPS ensure that your funds reach the intended recipient in real-time. 

In this blog post, we will delve into what IMPS is and how to set it up and use it for instant payments.

What is IMPS? 

IMPS, or Immediate Payment Service, is a real-time Indian funds transfer system between banks. Introduced by the National Payments Corporation of India (NPCI), IMPS enables 24/7 immediate money transfers, including weekends and bank holidays. It allows individuals and businesses to transfer money instantly from their bank account to another bank account using various channels such as mobile, internet banking, ATMs, and bank branches. 

Features of IMPS 

Before you start using IMPS as a method of online money transfer, it's important to familiarise yourself with its key features: 

• Daily Maximum Limit: IMPS imposes a daily maximum limit of ₹5 lakh per transaction for both convenience and security. The daily transaction limit is ₹10 lakh.
• Transaction Charges: The transaction charges for IMPS range between ₹5 and ₹15, varying depending on the terms and conditions of respective banks. It's best to check with your bank for the applicable transaction charges. 
• Service Tax: In addition to transaction charges, service tax may also be incurred as per the prevailing tax regulations stated by the government. 
• Accessibility and Convenience: IMPS is available 24/7, including weekends and bank holidays, making it an accessible and convenient option for a real-time payment. 
• Secure Gateway: IMPS is a secure gateway for interbank money transfers in India, employing encryption and authentication protocols to ensure the safety of your financial transactions. 

How to Set Up and Use IMPS 

Setting up and using IMPS for instant payments is a straightforward process. Here is a step-by-step guide to get you started: 

• Register for Mobile Banking: To use IMPS, you need to have mobile banking enabled on your smartphone. Visit your bank's website or branch to register for mobile banking. 
• Download the Mobile Banking App: Once registered, download your bank's official mobile banking app from the app store. 
• Log In to the App: Open the app and enter your login credentials (username and password) to access your account. 
• Add Beneficiaries: To transfer funds, you need to add beneficiaries to your account. This can be done through the mobile banking app or internet banking portal of your bank. Provide the required details such as the beneficiary's account number, IFSC code, and other necessary information. 
• Initiate an IMPS Transaction: Once the beneficiaries are added, you can initiate an IMPS transaction from within the mobile banking app. Select the beneficiary, enter the amount to be transferred, and confirm the transaction. 
• Verify Transaction Details: Review the transaction details carefully before confirming the payment. Ensure that all information is accurate to avoid any errors or delays. 
• Authenticate the Transaction: Depending on your bank's security measures, you may be required to authenticate the transaction using an OTP (One-Time Password), MPIN (Mobile Personal Identification Number), or other authentication methods provided by your bank. 
• Receive Instant Confirmation: Once the transaction is successfully processed, you and the beneficiary will receive instant notifications confirming the transfer. 

Sample Calculations 

Here are some sample calculations to understand how IMPS works: 

Let’s say you want to transfer ₹10,000 to a friend's bank account using IMPS. The transaction charges for IMPS would be ₹5.