Definition
IMPS (Immediate Payment Service)
IMPS is an instant, round-the-clock interbank money transfer service available through mobile, internet and ATM channels.
IMPS, run by the NPCI, enables instant fund transfers any time of day, including weekends and holidays. You can send money using the beneficiary's account number and IFSC, or via a mobile number and MMID.
It is designed for smaller, immediate payments and has a per-transaction limit. Banks may levy a small fee on IMPS transfers, unlike the often-free UPI.
IMPS predates UPI and remains useful as a fallback and for transfers where UPI is not set up, complementing NEFT and RTGS in India's payments ecosystem.
Related terms
- NEFT (National Electronic Funds Transfer)NEFT is an electronic system for transferring money between bank accounts across India, settled in batches around the clock.
- RTGS (Real Time Gross Settlement)RTGS is a system for large-value money transfers that are settled individually and in real time.
- UPI (Unified Payments Interface)UPI is India's instant real-time payment system that links bank accounts to a single mobile app for sending and receiving money.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.