What Is an IMPS Transfer and How Does It Work

An IMPS transfer is an instant bank-to-bank payment through Immediate Payment Service (IMPS), a system run by the National Payments Corporation of India (NPCI). Money reaches the other account within seconds, including on Sundays and bank holidays. You need the receiver's account number and Indian Financial System Code (IFSC), or their mobile number and Mobile Money Identifier (MMID).

• One IMPS transfer can carry up to Rs. 5 lakh on every channel except SMS and interactive voice response (IVR).
• Your bank sets its own daily limit and any charge.
• If your account is debited and the money does not arrive, the receiving bank must reverse it by the next day (T+1).

Before a large or urgent payment, check your bank's daily limit and charges in your banking app. Save the transaction reference number from every payment you make. An IMPS transfer is not a listed way to pay a Bajaj Finance loan equated monthly instalment (EMI), so use the options in the Bajaj Finance online payment guide.

An IMPS transfer is an electronic payment sent through Immediate Payment Service (IMPS) that moves money between two bank accounts instantly, 24 hours a day, every day of the year. The National Payments Corporation of India (NPCI) runs IMPS and launched it for the public on 22 November 2010.

Unlike batch-based bank transfers, each IMPS transfer is credited on its own as it arrives. The receiver gets the money within seconds.

You send it from your own bank's mobile banking, internet banking, branch, ATM or SMS banking. The receiver does not need to be online or take any action. Both banks must be IMPS members, and the receiving account must be active.

How does an IMPS transfer work?

An IMPS transfer works by sending your payment instruction from your bank to the receiver's bank through the NPCI network, which confirms the credit within seconds. Your bank debits your account, and the receiver's bank credits theirs. Your bank then shows you the result.

To send an IMPS transfer, you identify the receiver in one of two ways.

Account number and IFSC is the method most people use. MMID is a code a bank issues for each account linked to a mobile number. To receive an IMPS transfer through MMID, you must register for mobile banking with your bank first.

Every successful payment gets a transaction reference number. Save it. You need it if the money does not reach the receiver.

How do you make an IMPS transfer?

You make an IMPS transfer from your bank's mobile app or internet banking in five steps. Screen names differ by bank, but the order stays the same.

1. Sign in to your bank's mobile app or internet banking.
2. Add the receiver as a beneficiary using their account number and IFSC, if your bank asks you to.
3. Open the fund transfer option and choose IMPS as the transfer mode.
4. Enter the amount and check the receiver's name, account number and IFSC.
5. Approve the IMPS transfer with the one-time password (OTP) your bank sends, or with your transaction PIN.

After you approve, your bank shows a success message and the transaction reference number. Save a screenshot or download the receipt.

Without the internet, you can pay by IMPS at a bank branch, at an ATM or through SMS banking, where your bank offers it. Some banks place a waiting period or a lower limit on a newly added beneficiary. Check your bank's rules before a time-bound payment, such as rent or a fee due today.

The NPCI limit for one IMPS transfer is Rs. 5 lakh, on every channel except SMS and IVR. Transfers made by SMS or IVR carry a lower limit.

The Rs. 5 lakh figure is a cap for each payment, not a daily limit. NPCI does not set a daily limit. Your bank sets one for each account, based on your account type and channel.

Charges are also set by your bank, not by NPCI. Some banks charge a fee for each IMPS transfer based on the amount, plus goods and services tax (GST). Other banks charge nothing online. Check your bank's schedule of charges before a large payment.

IMPS transfer vs NEFT, RTGS and UPI: which to use?

IMPS suits an urgent payment of up to Rs. 5 lakh that must reach the receiver at once. National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) and Unified Payments Interface (UPI) suit other amounts and needs.

The table compares an IMPS transfer with three other bank transfer methods:

Use RTGS for an amount above the Rs. 5 lakh IMPS transfer cap that must arrive the same day. Use NEFT when a few hours of delay do not matter. Use UPI for everyday payments to people and shops that share a UPI ID or QR code.

The Reserve Bank of India (RBI) runs NEFT and RTGS. NPCI runs IMPS and UPI. RTGS has run 24x7 since 14 December 2020.

What happens if an IMPS transfer fails?

If an IMPS transfer fails after your account is debited, the receiver's bank must return the money to you by the next day, called T+1. If the bank misses that deadline, you are owed Rs. 100 for each day of delay.

These rules come from the RBI circular on turnaround time for failed transactions, dated 20 September 2019. "T" is the day of the transaction. The reversal and compensation are automatic. You do not have to apply for them.

A failed IMPS transfer and a payment to the wrong account are different problems.

• Failed transfer: Your account is debited, but the receiver's account is not credited. The RBI T+1 reversal rule applies.
• Wrong transfer: The money reaches an account you did not intend. The T+1 rule does not apply, because the transfer succeeded.
• Pending status: Your app shows the payment as pending. Wait until the end of the next day before you raise a complaint.

For a failed or wrong IMPS transfer, contact your own bank first, not the receiver's bank. Give the date, amount and transaction reference number. Keep the complaint number your bank gives you. If your bank does not resolve it within the time set in the RBI Ombudsman scheme, you can complain to the RBI Ombudsman.

Can you pay your Bajaj Finance EMI by IMPS transfer?

No, the Bajaj Finance payment guides do not list IMPS transfer as a way to pay a loan equated monthly instalment (EMI). They list the Bajaj Finance App, My Account, bank transfer and debit or credit card.

To pay through the Bajaj Finance App, go to "My Relations", select your loan account and choose "Make Payments". This links your payment to your loan account number.

Do not send an IMPS transfer for a Bajaj Finance loan to an account number shared by phone, SMS or chat. A payment to an unofficial account does not reduce your loan. Check your outstanding loan amount before you pay. If a payment does not appear against your loan, call Bajaj Finance on 8698010101.

Next steps

1. Before you send money: Collect the receiver's account number and IFSC, and check your bank's daily IMPS transfer limit in your banking app.
2. If a transfer has failed: Note the transaction reference number and wait until the end of the next day. If the money has not come back, raise a complaint with your bank.
3. To pay a missed Bajaj Finance EMI: Read the steps for paying an overdue EMI and bounce charges.