IMPS
Immediate Payment Service (IMPS) is an NPCI-operated 24×7 instant inter-bank fund transfer service that allows real-time transfers using account number and IFSC, mobile number with MMID, or Aadhaar number.
Understanding IMPS
NPCI launched IMPS in 2010 to enable instant transfers when the older NEFT was still batch-based. Even after UPI's rise, IMPS remains useful for transfers above ₹1 lakh where you want real-time settlement and the ability to use traditional account number + IFSC rather than a VPA.
IMPS supports three addressing modes: account number + IFSC (most common), mobile number + MMID (Mobile Money Identifier — largely obsolete since UPI), and Aadhaar number (used in some government and DBT flows).
Why it matters
IMPS fills the gap between UPI's ₹1 lakh limit and RTGS's ₹2 lakh minimum, with 24×7 instant settlement. For freelancers, small business owners, and anyone making mid-value urgent transfers, IMPS is the right rail — though banks often charge a small fee that UPI does not.
Example
You need to transfer ₹3 lakh to a contractor immediately on a Sunday afternoon. UPI's ₹1 lakh limit blocks it, NEFT will settle in the next batch (up to 30 min wait), but IMPS handles it in 5 seconds. The contractor sees credit immediately.
You need to transfer ₹3 lakh to a contractor immediately on a Sunday afternoon. UPI's ₹1 lakh limit blocks it, NEFT will settle in the next batch (up to 30 min wait), but IMPS handles it in 5 seconds. The contractor sees credit immediately.