In the world of banking, there is a need to make payments quickly and effectively through various payment systems that have been devised for this purpose. IMPS is one of them. The IMPS full form is Immediate Payment Service. It was established by the National Payments Corporation of India in 2010.
About IMPS Transaction
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. IMPS is used for making debit card payments as well as payments by credit card. 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, full form being Immediate Payment Service, implies that it is a quick process without having to do lengthy paperwork.
- Payments are transacted by electronic means, with step-wise verification.
- The beneficiary and the person transferring money are notified once the transaction is completed.
If your bank and your beneficiary’s bank are registered to be IMPS-enabled, interbank transactions can occur easily. 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 charges 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 an amount of Rs. 1,001 – 1,00,000 transacted.
- IMPS Charges for GST – GST is a tax that is 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. Through a menu-driven process, you can enter account details and the amount of transfer 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 details of 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 mode of money transfer that is effortless and user-friendly.
- IMPS: What is IMPS in Banking? Features & Benefits of IMPS Online – Finserv MARKETS (bajajfinservmarkets.in)