IMPS Transfer Explained: Limits, Timing & Charges

You probably know IMPS for its speed. But there’s more to it than just instant transfers.

Daily caps, per-transaction charges, and timings - Keep these in mind, and you won’t hit unexpected roadblocks, schedule your transfers smarter, and steady your cash flow.

Here, we’ll explain everything you need to know about what is IMPS transfer, its limits, timing, and charges.

IMPS, or Immediate Payment Service, was launched in 2010 by NPCI (National Payments Corporation of India)  to be one of the quickest ways to make money transfers in India. You don't have to wait until banking hours or working days. It doesn't matter whether it's midnight or Sunday afternoon; your money is transferred immediately. You can utilize it via mobile banking, internet banking, ATMs, or even USSD (*99#).

IMPS has also undergone a lot of transformation over the years to simplify transfers:

• 2010: Launched for mobile banking through MMID (Mobile Money Identifier).

• 2011-2013: Rolled out to ATMs, internet banking, and SMS/USSD platforms.

• 2014: Made transfers possible through account number + IFSC, not only MMID.

• Dec 2015: Raised the transaction limit from INR 2 lakh to INR 5 lakh per transfer/day.

• Feb 1, 2024: Simplified beneficiary bank details: you can now transfer money with mobile number + bank name alone, without requiring IFSC in person-to-account transfers.

• Aug 15, 2025 (SBI update): Revised charges of State Bank of India. Salary package account holders are still exempted from fees.

IMPS has 969 participating members, including banks & PPIs. 

The IMPS transfer is simple yet extremely secure. It is based on NPCI's strong payment infrastructure, which makes it reliable and efficient.

Here's how it works:

1.Log in: Access your bank's mobile application or net banking site.

2.Choose IMPS: Select "IMPS transfer" as your option.

3.Add details: You can make money transfer in two ways:

• Account number + IFSC (similar to NEFT/RTGS)

• Mobile number + MMID (a 7-digit code registered against your account)

4.Enter the amount: Type in how much you wish to send.

5.Authenticate: Verify the payment using OTP, MPIN, or biometric, whichever your bank supports.

6.Done: The money gets credited instantly, and both you and the recipient receive a Transaction Reference Number (TRN).

Here’s why IMPS is such a win-win:

If you’re an entrepreneur/freelancer:

• Instant access to earnings: No more holding out for NEFT settlement cycles or counting on bank holidays. With IMPS, the funds reach your account in seconds.

• Flexibility in receiving payments: Clients can send through your account number + IFSC or even through your mobile number + MMID, which makes it convenient and easy.

• Low transaction cost: You don’t lose a big chunk of your hard-earned income to transfer fees. Fees are typically low.

• 24/7 banking availability: Midnight transfer, Sunday pay, or clearing bills on the last day—all possible without any hitch.

• Great for mid-value payments: Ideal if you are taking payments for projects, workshops, or services which don't involve lakhs but require instant clearing.

If you’re running a business:

• Smoother cash flow: No waiting days to settle, you can pay suppliers or accept payments from customers immediately.

• Better customer experience: Sellers and service providers can complete sales in an instant, without payment hitches.

• Lower operating hassle: Less reliance on cheques, cash deposits, or conventional transfers.

• Room to scale: If you're a small operation today or expanding tomorrow into a bigger business, IMPS scales easily.

• Seamless tech integration: It integrates with mobile banking app, e-commerce websites, and online platforms smoothly.

When it comes to IMPS, the big question most people have is: “What is IMPS money transfer? How much money can I actually transfer in a day?”

Here’s what you need to understand about IMPS limits:

Maximum transaction limit

As per RBI, the cap is set at INR 5 lakh per transaction. Most banks keep it at that limit, but others cut it down to INR 2 lakh. Better verify with your bank on the matter, more so if the transaction involves a big amount.

Minimum transaction limit

On the lower side, IMPS is super flexible; you can transfer as little as INR 1. A few banks set their own minimums (say INR 10 or INR 100), but in practice, it’s usually negligible. This is handy if you’re just testing a new payee or splitting small expenses.

IMPS limit per day

The daily cap is generally equal to the maximum transaction limit (INR 5 lakh cap) per day in general. Some banks have slightly lower caps (INR 2-3 lakhs), and most limit new beneficiaries to lower amounts (INR 25,000-INR 50,000 within the first 24 hours). But once that cooling period passes, you’re good to go up to the daily cap. 

Channel-specific limits

Your limit also depends on how you make the transfer. You will generally get the entire INR 5 lakh allowance through mobile banking or internet banking. However, if you use ATMs, SMS banking, or IVR, the limit can be different.

New beneficiary restrictions

For security reasons, most banks place restrictions on transfers to newly added payees. Typically, you’ll only be able to send INR 25,000-INR 50,000 in the first 24 hours after adding a beneficiary. Once that period passes, your normal IMPS limits kick in.

Corporate vs. retail accounts

If you’re using IMPS through a corporate account (say for vendor payments or payroll), banks may give you higher flexibility compared to individual savings accounts. Freelancers and entrepreneurs using personal accounts usually stick to the standard limits, but with a current account you may be able to negotiate higher thresholds.

Wallet or app-based IMPS

When IMPS is done via a payment app or mobile wallet rather than directly from your bank, the limits are lower. For instance, certain wallets put a limit of INR 10,000 daily on transfers, even though RBI allows INR 5 lakhs.

With IMPS, you receive speed. IMPS transactions happen instantly, as opposed to NEFT or RTGS. Your money reaches from your account to the beneficiary's account in seconds, regardless of time or day. It means you can send or receive payments 24x7 even on weekends and holidays without waiting for settlement cycles.

Banks could charge a minimal fee for IMPS transfers, although several now provide it at no cost as part of their move toward digital banking. Charges typically vary by transaction amount:

Important points:

• Receiving funds: RBI specifies that banks are not supposed to charge the customer for receiving IMPS payments, so whether you're a freelance receiving client fees or a business receiving customer payments, you don't need to pay for incoming transfer fees.

• Waivers: Certain banks, especially those that are digitally inclined, have the ability to offer zero charges for IMPS transfer, predominantly for online transactions.

When you send money through mobile wallets or payment apps using IMPS, you usually do not require a bank account number. Many apps instead offer a special IMPS wallet number, or a MMID (Mobile Money Identifier). This is a 7-digit number associated with your bank account, so transfers are speedy and safe.

Here’s how it works:

• Sending money: You enter the recipient’s mobile number and MMID instead of their account number and IFSC.

• Receiving money: Your MMID ensures that money sent via IMPS goes straight into your linked account.

• Security: Using MMID adds a layer of protection because your account number isn’t directly shared with the sender.

When it comes to IMPS, each bank sets its own rules for transaction limits. Here’s a quick look at the maximum, minimum, and daily limits across some of India’s bank partners (SBI, HDFC, ICICI, Axis, etc.):

IMPS has transformed the way money moves in India by making instant, round-the-clock transfers a reality for both individuals and businesses. Whether you’re paying suppliers, receiving client payments, or simply sending funds to family, IMPS ensures speed, security, and convenience every time. As digital payments continue to evolve, understanding how IMPS works and how to make the most of its limits and charges can help you manage your cash flow smarter and avoid unnecessary delays.