PrepMaticExam glossary · Bank exams
IMPS full form: Immediate Payment Service explained
On this page
IMPS stands for Immediate Payment Service. It is an instant, round-the-clock inter-bank fund transfer service run by the National Payments Corporation of India (NPCI). Money leaves your account and reaches the beneficiary's account within seconds, on any day of the year, including holidays and Sundays. NPCI started IMPS in 2010.
How you can send money by IMPS
| Method | What you need |
|---|---|
| Mobile number + MMID | The beneficiary's mobile number and their 7-digit Mobile Money Identifier (MMID) |
| Account number + IFSC | The beneficiary's account number and the branch IFSC |
You can send it from mobile banking apps, internet banking, SMS banking, ATMs and branches, depending on the bank. The sender's bank sends a confirmation message when the transfer is completed.
Why it matters
IMPS was the first service in India to offer instant, 24x7 transfers between banks, and the technology behind it, the NPCI switch, later became the base for UPI. It differs from NEFT because it does not wait for a batch, and from RTGS because it has no minimum amount. It is meant for smaller payments, with an upper ceiling per transaction set by NPCI, which has been raised over the years (to ₹5 lakh per transaction; check the current ceiling at npci.org.in).
Example
You need to pay a plumber ₹4,500 at 11 pm on a Sunday. NEFT would work now that it runs 24x7, but IMPS will credit his account at once and you will see the confirmation immediately. If his bank is a small cooperative bank that is not on the IMPS network, you would need another route.
How bank exams ask about it
Stems are straightforward: "IMPS stands for", "IMPS is operated by", "MMID is" and "IMPS works on". Statement questions test that IMPS works on holidays and has no minimum. Because UPI builds on IMPS rails, the two often appear together in the same question, so revise them as a pair. See the context in banking awareness.
Where to check
NPCI's IMPS product page at npci.org.in lists the current ceiling, channels and member banks.
Frequently asked questions
Is IMPS the same as UPI?
No. UPI is a layer on top that lets you pay using an address like name@bank without sharing account details. The settlement underneath uses IMPS infrastructure.
Is IMPS free?
Banks set their own charges, often slab-based for IMPS, and some waive them for mobile channels. Check your bank's schedule of charges.
Know which section is costing you the cut-off
Take a free bank-exam assessment on PrepMatic. It shows where you stand in Quant, Reasoning and English, then builds a daily study plan and mock tests focused on your weak subjects.
Start free assessment →Free forever plan · No credit card · 2-minute setupRelated
- UPIUPI is NPCI's instant payment system that lets you send money from your bank account using a virtual payment address and a UPI PIN. How it works and exam facts.
- NEFTNEFT is the RBI-run system for transferring funds between bank accounts in half-hourly batches, available 24x7. Full form, how it works, vs RTGS and IMPS.
- RTGSRTGS is the RBI system for large-value payments settled one by one in real time and final once sent. Full form, minimum amount, timings and exam facts.
- KYCKYC (Know Your Customer) is the identity and address check banks must do before opening an account. Meaning, officially valid documents, e-KYC, V-CIP and CKYC.
- White label ATMA white label ATM is owned and run by a non-bank company and serves customers of all banks. Meaning, RBI authorisation, how it differs from brown label ATMs.
More in Bank exams
- Inflation targetingIndia follows flexible inflation targeting: the RBI aims for a CPI target with a tolerance band. How the framework works, what counts as failure and exam facts.
- Government securitiesGovernment securities are tradable bonds and bills issued by the Centre and states to borrow money. Dated G-secs, SDLs, price-yield link and exam questions.
- Insolvency and Bankruptcy CodeThe IBC is India's single law to resolve insolvency of companies and individuals on a fixed timeline. NCLT, IBBI, CIRP, CoC and exam facts.
- GDPGDP is the total value of final goods and services produced in a country in a period. Formula, nominal vs real, GVA link, who publishes it and exam facts.
- IRDAIIRDAI is the regulator of India's insurance sector. Full form, IRDA Act 1999, headquarters, board, functions and how banking exams ask about it.
- Kisan Credit CardThe Kisan Credit Card gives farmers timely, low-cost credit for crops and allied work. Launch, purpose, interest subvention, collateral rules and exam facts.
- Lead Bank SchemeUnder the Lead Bank Scheme each district is assigned to one bank that coordinates credit. Origin in 1969, SLBC, DCC, annual credit plan and exam facts.
- Fiscal deficitFiscal deficit is the government's total spending minus its receipts excluding borrowing. Formula, worked example, revenue and primary deficit and exam notes.