IMPS: All you need to know

2 Nov 2020  Read 1063 Views

In the hustle and bustle of life, what all an individual aspires for are systems which are beneficial and flexible at their end. People always seek for something that doesn't require a lot of time and can be done with ease and comfort without any tussle. And with the entrance of digitization in the modern world, this has become possible. Whether it's online shopping, ordering food, booking reservations, or anything; anything and everything can be done via online systems.

When everything has gone online, how can banks stay behind?

Can you remember the last time you actually took off from your office or home and went to the bank just to transfer money from one account to another? Must have been long ago, Right?

Well, the online fund transfer is the star facility that took the show of banks. There are a couple of options available if you wish to do an online transaction, but those options shrink when it comes to swift timings. Among these few options of fast services, there is one service which is provided by banks; IMPS

Let's have a peek into the IMPS system and get a deeper understanding of this integral part of the online fund transfer.

What is IMPS?

NEFT and RTGS are commonly used services, and their names are always taken together. But when it comes to IMPS, it has not received that popularity till now.

The Immediate Payment Service (IMPS) is also a real-time fund transfer service that grants instant interbank transfers from the bank account using your banking apps, ATM, mobile payment, SMS, or from the branch. Your bank must be enabled with the facility of IMPS for you to avail its services. Currently, there are 498 member banks, 26 PPIs are offering IMPS services.

The IMPS service is available 24x7. We can transfer funds 365 days with IMPS. Therefore, IMPS goes by its name, as it immediately transfers money at any given time from your bank account to the beneficiary's bank account.

The IMPS facility is very handy and can be used anytime. Whether you are traveling, visiting a park, shopping in stores, sitting at home, or at the office, you can easily make big transactions within comfort.

Another thing to be kept in mind is the documentation requirement. Well, there are no such documents required for availing the service. However, one can use this facility by just giving your recipient's:

• Adhar Card Number.

• IFSC and Account Number.

• Mobile number as well as the MMID code that is generated.

What are the timings of IMPS?

As stated above, the IMPS goes by its name. The payments via IMPS could be made immediately at any point of time. It could be on holiday or at nighttime. It is up to you what time you choose for this.

What is the limit for IMPS?

The upper or lower limit of transactions under IMPS are dependent on the bank you are using. Each bank has its own transfer limit; it depends on how you are using it, whether it's MMID or the recipient's account number.

Before starting your transfer via IMPS just have a look at how much is allowed per transaction. For most of the bank accounts, Rs.1,00,000 is set as the lower limit of transactions. And it's mostly Rs. 2,00,000 as the upper limit; however, it is advisable to check the same through the bank.

What are the charges for IMPS?

The charges of IMPS vary from bank to bank. Each bank has made its own systems of charges. For the major commercial banks in India, the charges could range from roughly ₹5 + GST to ₹15 +GST depending on the amount that is being transferred.

Following is the chart that shows the IMPS charges of different banks in India.

Bank

Charges under ₹1 lakh

Charges over ₹1 lakh

HDFC

₹5 + GST.

₹15 + GST.

ICICI

₹5 + GST.

₹15 + GST.

Kotak

₹5 + GST.

₹15 + GST.

SBI*

0

0

Recently, a piece of news which came as good news came for the users of IMPS stated that the State Bank Of India waived their charges for IMPS. It is a feasible idea to check the news for charges of IMPS, as some of the banks have been suggesting making it free to facilitate more digital transactions in the country.

What are the benefits of using IMPS?

Earlier, there used to be a stiff competition between NEFT and RTGS for online transactions. However, the entry of IMPS changed the whole game. IMPS comes with a lot of benefits at the customer's end. A list of advantages of IMPS are stated below:

  • Transactions take place in real-time. Payments occur instantly. The quick transaction that takes hardly a fraction of a second ensures transparency at both ends. It leads to a dispute free transfer of funds.
  • Another merit of using IMPS is that it comes with a very simple process. The simple process only requires filling out the details of the beneficiary. 
  • There are no time constraints in the case of IMPS. This is where IMPS is on edge over its counterparts NEFT and RTGS. The working hours of IMPS continues 24x7. 

How is IMPS different from NEFT and RTGS?

Category

NEFT

RTGS

IMPS

Minimum transfer value

Rs.1.

Rs.2 lakh.

Rs.1.

Maximum transfer value

Depends on the customer segment.

No upper limit.

Rs.2 lakh.

Type of settlement

Batches.

One-on-one settlement.

One-on-one settlement.

Speed of settlement

2 hours (subject to cut-off timings and batches).

Immediately.

Immediately.

Service availability

24/7

Depends on the bank.

24/7

Online/Offline

Both.

Both.

Online.

Read More: Know the difference between RTGS, NEFT and IMPS

Conclusion

Whenever asked to choose between hard work or smart work, a wise person will always choose smart work. In the banking system, this smart work is nothing but the facility of IMPS which hardly comes up with any limitation from its side. Therefore it is making big in the industry and has constantly been the choice of the masses.

IMPS has not only been successful in changing the client's demeanour and motives but has also paved the way for introducing modern forms of instant payment systems to let them regulate in India. What sets it apart is that its users could use the system of IMPS even without having a smartphone. This strengthens the system to its financial inclusiveness, thus giving rise to an incredible payment option for the masses.

About the Author: Aditi Sagar | 34 Post(s)

Aditi is born and brought up in New Delhi. Right now she is in the 2nd year of her college. She is pursuing graduation from Deen Dayal Upadhaya College, Delhi University with Bachelor's In Management Studies degree. 

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