IMPS is one of the mode of transfer money from one account to another. There are different types of money transfer mode is available like RTGS, IMPS, NEFT, UPI.
All these modes have their own benefits. Here we will discuss IMPS.
IMPS Full Form
IMPS full form is Immediate Payment Service. An individual can send money instantly to any other bank account.
What is IMPS
As IMPS known as Immediate Payment Service is referred to as an instant payment and electronic funds transfer system. IMPS offers its services through mobile phones and is super-convenient.
This inter-bank electronic fund transfer service is available for 24*7 which also includes the bank holidays.
IMPS is managed by the Reserve Bank of India and the National Payments Corporation of India (NPCI). It is the key mechanism of transferring money, initiated in 2010.
It is considered a great platform because it transfers funds instantly and securely especially during emergencies. It has a banking system terminologies in India.
The charges for the transaction of this platform are very nominal and the limit for transferring money is approximately two lakhs per day.
IMPS charges and limits
The charges for the IMPS are nearly subject to the sum which usually transfers with the bank’s policies. The IMPS charges vary from 2 to 25 for the sum of Rs. 10,000 to Rs. 2 lakhs.
In PNB (Punjab National Bank), the IMPS charges are the lowest as they charge only Rs. 5 up to Rs. 1 lakh.
Whereas the State Bank of India (SBI) has waived off any kind of fee for carrying out IMPS transactions. So there is no need to pay the fee on any IMPS transactions.
Using IMPS, anyone can transfer funds with a minimum of Rs. 1, due to which it becomes better than NEFT and RTGS.
In NEFT, the funds are not transferred instantly and in RTGS, the funds are not transferred less than 2 lakhs.
IMPS charges ICICI Bank
The charges of each bank vary for every transaction based on the amounts. If the amount is transferred up to Rs. 10,000 to 1 lakh, the charges are Rs. 5. Whereas Rs. 15 are charged if the amount transferred is up to Rs. 1 lakh to Rs. 2 lakhs.
IMPS charges SBI Bank
SBI does not charge anything if the amount is transferred up to Rs. 1000. Whereas the bank charges Rs. 5 and Rs. 15, if the amount transferred, is up to Rs. 1,001 to Rs. 1 lakh and above Rs. 1 lakh to Rs. 2 lakhs respectively.
Benefits of IMPS
Just try to remember the last time when you did an online transaction to do the online shopping or paying bills using your mobile phone. What was your experience with the mode of payment?
You would answer that the process was very quick and reliable. This is the reason why IMPS is considered best among its preceding payment services which are NEFT and RTGS.
Both of the services take hours or even days(depending upon bank branches) to initiate the transaction.
Imps is very flexible. It accommodates according to the customers. Following are some of the benefits of using IMPS as a mode of payment-:
The reason why consumer behaviour changes in some years towards online shopping is because of IMPS. IMPS provides hassle-free quick transactions that save a lot of time for the customer and the seller.
With the help of IMPS, transactions can be done in seconds.
Earlier, there were a lot of disputes in the freelancing world due to late payments, but now this dispute is solved as the freelancers can now get instant payment from their clients through the imps mode of payment.
As the name suggests, It is bound to transfer money in real-time as it facilitates instant money transfer. It also transfers money within an hour in the presence of technical issues such as server downtime.
Any innovation is accepted widely only if it is simple in the process. Same with the case of IMPS. The process of IMPS is very simple.
The beneficiary just has to fill in his or her details for the first time like name, bank account number, IFSC code or MMID numbers, etc.
After you’re done with the details, you will be able to do your first transaction within 30 minutes. After the first transaction, all your future payments will be instantaneous.
IMPS is far easy to use in comparison to various other modes. It requires a mobile number which should be linked to the bank account. Also, an MMID of the applicant is required to transfer the amount. This little information makes the entire process easy to use.
No time constraints
The service of IMPS is not like NEFT and RTGS in which you can’t be able to do transactions on the bank and public holidays. You can send and receive payments anytime you want.
IMPS is flexible in terms of various aspects. It is available 24×7, anywhere and anytime.
It is less time-consuming as you do not have to wait in long queues in banks. It is the main and foremost reason for popularity.
IMPS is based on mobile banking. When the transaction is done, the receiver and the sender are alerted with the text messages from the bank, which makes them relieved as it makes them aware of the transaction.
Various payments methods
The use of the internet is not compulsory in IMPS payments. Apart from using NetBanking and mobile banking, You can also use SMS to facilitate the payment.
Customs can also do transactions through ATMs too. So IMPS is accessible for all the classes of society.
IMPS transactions go from multiple verifications until banks give them green light.
IMPS is one of the most secure modes of doing financial transactions. It is cost-effective too.
IMPS is very convenient for the customers. You can use it from the comfort of your house and pay or receive Money without going out.
You can do online shopping, recharge your devices, book movie tickets, etc with the help of IMPS.
Banks that participate in IMPS
- ALLAHABAD BANK
- AXIS BANK
- ANDHRA BANK
- BANK OF BARODA
- CANARA BANK
- CITI BANK
- CENTRAL BANK of INDIA
- CATHOLIC SYRIAN BANK
- FEDERAL BANK
- HDFC BANK
- HSBC BANK
- ICICI BANK
- INDIAN BANK
- IDBI BANK
- KARNATAKA BANK
- INDIAN OVERSEAS BANK
- PUNJAB NATIONAL BANK
- KARUR VYSYA BANK
- STATE BANK OF INDIA
- KOTAK MAHINDRA BANK
- VIJAYA BANK
- YES BANK LTD
Ways to do IMPS
There are mainly 4 ways that are commonly used to do IMPS transactions. The ways are-:
- Payments through IFSC code
- Through SMS
- Through the mobile number and MMID
- Through ATM
Payments through IFSC code
This is the most common way of transactions through IMPS. Using this method you can send money from one bank to another bank.
This method requires the internet along with a mobile number to facilitate the transaction.
Payment transfer through SMS
To reach out to more people IMPS makes it easier for the customers to transfer money through SMS as well. The only thing which is required by customers is the exact format as per their Bank.
Following is a sample format of a bank
IMPS <Receiver’s Mobile No>< Receiver 7-digit MMID Number><Amount><MPIN>
Payment transfer via MMID and mobile number
You can transfer Money with IMPS using your mobile number too. All you have to do is just register your number with your Bank ( it can be done online too).
Once you’re done with mobile number registration, you will be provided with a 7-digit MMID code from the bank which is necessary to initiate the IMPS payments.
Payments transfer through ATM
Although ATMs are not generally used for IMPS transactions, you can make payments through ATMs too. All you need is the debit card number of the beneficiary.
The Payment method through ATM is quite safe. It is not greatly used by people because it is mostly used to transfer money to family members.