What is IMPS transaction

Vishal Vishwakarma

IMPS or Immediate Payment Service is an electronic payment system that was launched by the National Payments Corporation of India (NPCI) in 2010. It is an interbank electronic fund transfer service that enables users to transfer funds from one bank account to another bank account instantly. IMPS allows customers to make transactions 24x7, including weekends and holidays, and is available through various channels, including mobile banking, internet banking, ATM, and branches of participating banks.

IMPS transactions are popular in India because of their speed and convenience. They are particularly useful for making small transactions, such as paying utility bills, transferring money to friends and family, and making purchases online. The service is widely used by both individuals and businesses, including merchants who accept payments through IMPS.

IMPS transactions are usually initiated by the sender, who provides the details of the recipient's bank account, including the account number and the Indian Financial System Code (IFSC) of the recipient's bank. The IFSC code is a unique code assigned to each bank branch in India, which is used to identify the bank and branch where the account is held.

Once the sender initiates the transaction, the funds are transferred instantly from the sender's account to the recipient's account. Both the sender and the recipient receive a confirmation message from their respective banks, indicating that the transaction has been successful.

IMPS transactions can be made using various channels, including:

Mobile banking: Customers can use their mobile phones to initiate IMPS transactions by downloading their bank's mobile banking app. They can then enter the recipient's account details and transfer the funds instantly.

Internet banking: Customers can also initiate IMPS transactions using their bank's internet banking portal. They can log in to their account, enter the recipient's account details, and transfer the funds instantly.

ATM: Some banks also offer IMPS transactions through their ATMs. Customers can insert their debit card into the ATM, enter their PIN, and select the IMPS option. They can then enter the recipient's account details and transfer the funds instantly.

Bank branch: Customers can also visit their bank branch and initiate an IMPS transaction by providing the recipient's account details to the bank teller.

IMPS transactions are safe and secure, as they are processed through the secure banking channels of the participating banks. Customers are also required to authenticate their transactions using various security measures, such as one-time passwords (OTPs) and personal identification numbers (PINs).

IMPS transactions are subject to certain transaction limits, depending on the bank's policies and the customer's account type. For example, some banks may have a maximum transaction limit of Rs. 50,000 per day, while others may have a higher limit.

In conclusion, IMPS is a convenient and secure electronic payment system that allows customers to transfer funds instantly from one bank account to another. The service is available 24x7 and can be accessed through various channels, including mobile banking, internet banking, ATM, and bank branches. IMPS transactions are subject to certain transaction limits and are processed through the secure banking channels of participating banks.