In banking, there is a need to make payments quickly and effectively through various payment systems devised for this purpose. IMPS is one of them. The IMPS complete form is Immediate Payment Service. It was established by the National Payments Corporation of India in 2010.
About IMPS Transaction
IMPS is used for making debit card payments and payments by credit card. When you register for IMPS, you are permitted to transfer funds from one bank to another instantly. Furthermore, you can also transfer funds to authorized Reserve Bank of India PPIs or Prepaid Payment Instrument Users within India. Here are some features of an IMPS transfer you should know about:
- You can conduct an IMPS transfer anytime, 24 hours a day, 365 days of the year. It is possible on bank holidays too.
- IMPS is available through your mobile phone, online banking, SMS, or ATM.
- IMPS transactions can be executed as individual transfers only.
- The transfer of funds through IMPS is safe and secure, as IMPS is executed through encrypted servers.
- IMPS, complete form being Immediate Payment Service, implies that it is a quick process without lengthy paperwork.
- Payments are transacted by electronic means, with step-wise verification.
- Once the transaction is completed, the beneficiary and the person transferring money are notified.
If your bank and your beneficiary’s bank are registered to be IMPS-enabled, interbank transactions can occur quickly. Nonetheless, you may be required to pay specific IMPS charges, and these may vary from one bank to the other. Here are the types of expenses you incur on an IMPS transfer:
- IMPS Charges for Transactions – This charge is levied against each IMPS transfer made and varies from Rs. 2.50 to Rs. 15 depending on the bank involved. For instance, HDFC Bank charges Rs. 5 plus GST on Rs. 1,001 – 1,00,000 transacted.
- IMPS Charges for GST – GST is a tax levied by the government on any IMPS transfer.
You should note that only inward transactions through IMPS are charged fees, and no charge is levied on outgoing transactions.
How to Transfer Money Using IMPS
An IMPS transfer can be done in one of the following main ways as mentioned below:
- Via IFSC Code – You can do this through a net banking facility by choosing the option of IMPS transfer and entering the beneficiary and the bank’s IFSC code. You can enter account details, and transfer amounts through a menu-driven process and click the submit button.
- Using SMS – Once you link your mobile number with your bank account, you only have to send an SMS to your bank with the amount to be transferred and the beneficiary details.
- Through a Mobile Phone – This type of transfer is also done through your mobile phone but via an app linking your mobile phone to your bank account.
- Via an ATM – You can transfer funds through the IMPS transfer facility by swiping your debit card and entering the beneficiary’s debit card number. Although not a common way to execute transfers, this is a way of IMPS transfer.
Learn more about IMPS transfer at Finserv MARKETS, and you can find a simple model of money transfer that is effortless and user-friendly.
- IMPS: What is IMPS in Banking? Features & Benefits of IMPS Online – Finserv MARKETS (bajajfinservmarkets.in)