Each of us may come across a situation when we need to send or receive money quickly. That’s where IMPS helps. The IMPS or Immediate Payment Service is a fast and easy way to transfer money between bank accounts. As it is a real-time electronic fund transfer system, you can use it anytime, whether it is day or night, on Sundays or holidays. Whether you are using a mobile app, internet banking, or ATM, IMPS would help you send money in just a few seconds. In this blog, let’s learn about the IMPS meaning, how it works, its benefits, IMPS charges, IMPS transfer limits and more.
What is IMPS?
IMPS, as mentioned earlier, stands for Immediate Payment Service. It is a service that helps you send money from your bank account to someone else’s bank account quickly. It is called an immediate service as the money reaches the other person within just a few seconds. It is a safe and secure way for all types of bank transfers.
You can send money using a bank account number, IFSC code, mobile number, MMID and Aadhaar number (if linked with bank). It works through your mobile banking, internet banking, ATM or even SMS, depending on your bank.
Features of IMPS
Here are the main features of IMPS:
- Quick Transfers: Money gets transferred right away.
- Always Available: Works 24×7, even on Sundays and public holidays.
- Multiple Ways to Send Money: Use account number and IFSC, mobile number and MMID or Aadhaar.
- Used on Different Platforms: You can send money through apps, websites, ATMs or SMS.
- Safe and Secure: You send money through secure banking channels.
Benefits of Using IMPS
Here are the main benefits you can avail by using IMPS. These are also the reasons for the success of this electronic fund transfer system:
- It saves you time as money reaches the other person within seconds.
- You do not need to wait for banking hours as it is available 24X7.
- IMPS services are convenient as you can send money from your phone or computer.
- Most banks charge very little, and some do not charge at all for IMPS transfers.
- You do not need to step out of your home to transfer money, as it can be done online.
- It is a safe method and your money is protected with strong security.
- You can send small or large amounts easily.
How to Transfer Money Using IMPS
You can use IMPS in different ways. Here’s how:
For Mobile Banking App or Internet Banking:
- Open your bank’s app or internet banking website.
- Go to Funds Transfer and choose IMPS.
- Enter details like account number and IFSC or mobile number and MMID.
- Type the amount.
- Confirm with MPIN or OTP.
- That’s it! Your money has been transferred.
For ATM:
- Insert your ATM card and enter your PIN.
- Select Fund Transfer > IMPS.
- Add the receiver’s details.
- Confirm the transfer.
For SMS:
- Send a message in the format as per your bank’s requirements.
- Get an SMS confirmation after the transfer.
Charges and Limits Associated with IMPS
The IMPS charges and limits vary from bank to bank, and you need to consult your bank’s customer care representative to know the details. However, here are the basic fees and limits that the banks usually have:
- Up to ₹1,000: ₹0 to ₹5 + GST
- ₹1,001 to ₹10,000: ₹5 to ₹10 + GST
- ₹10,001 to ₹1,00,000: ₹10 to ₹15 + GST
- ₹1,00,001 to ₹5,00,000: ₹15 to ₹25 + GST
Note: Make sure you check your bank’s website for the exact IMPS charges.
IMPS Transfer Limits
As per the RBI rules and regulations, the maximum IMPS limit per day is ₹5,00,000, and the minimum transfer amount is ₹1.
Also Read : What is NEFT
Conclusion
IMPS is a quick, safe and simple way to send money between bank accounts. It works anytime and is available on phones, computers, ATMs, and even SMS (for some banks). Now that you know the IMPS full form in banking, its meaning, how it works, charges and limits for IMPS transfers, you can certainly start using it without any worries.
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