This is a very advanced method of moving money from one bank account into another. People can send money to bank accounts using their mobile phones or laptops sitting at home.
It was initiated by the Indian Government in 2010.
It completes transactions instantly, as the name implies.
IMPS, an instant real-time interbank electronic funds transfer system that allows you to transfer money instantly across India via mobile, internet, and ATMs.
IMPS is both safe and economical from both financial and non-financial perspective.
What is the secret to it?
- To make a transaction via mobile, customers must register their mobile number.
- Customer receives a Unique Mobile Money Identifier, (MMID), and a MPIN from the bank. This is a 7-digit number.
- IMPS connects to a bank account using the Aadhaar or mobile number.
- Using IMPS to send money to someone, it first connects to your bank account via your mobile number. It does not transfer funds directly into the beneficiary’s account, unlike NEFT or RTGS. It first transfers funds to your mobile number from your account.
- It then transfers the funds from your mobile phone to his/her mobile phone.
- Finally, the beneficiary’s mobile number can be accessed to his/her account.
- Send money instantly. Within a matter of seconds, the money will be credited to the beneficiary’s bank account.
- IMPS is cost-effective, safe and secure.
- Transactions are not subject to a minimum transaction amount. Transfer Re.1 with IMPS is possible.
- IMPS is available 24/7 and even on holidays.
- Interbank (transfer of money between banks) and intrabank (transfer of money within one bank) payments are possible
- You can use it on your mobile phone, online banking, and ATMs
- Although IFSC code is used for IMPS, the bank account number and the bank account number are generally used. However, money can be transferred through IMPS using MMID, AAdhar number, and mobile number.
Transactions over the internet are dependent on the security and robustness the network provides. IMPS is generally secure but not without human error. If you remit money to an account whose number was incorrectly entered, it will be difficult or impossible to recover the money from the account holder.
What’s the difference between NEFT and IMPS?
|Acronym||Immediate Payment Service||Transfer of National Electronic Funds|
|Significance||It’s an instant inter/intra and mobile transfer facility that can be used with a smartphone, computer, or ATM.||This is an electronic payment system that banks use to transfer money nationwide.|
|Settlement Time||It’s an instant facility.||Transferring money takes time.|
|Working days||It works 24*7, every day.||It is open Monday through Saturday, with the exception of Sundays and holidays.|
|Transfer limit||There is no limit on the maximum transfer, but it is Rs. 2, 00,000. For most banks.||There is no limit on the maximum and minimum transfer.|
|Transactions||Multiple transactions per day IMPS transfer limit.||12 settlements per day|
|Speed||It’s very quick.||It’s slower than IMPS.|
|Category||It is covered under mobile banking||It is available under electronic banking.|
|Fees||Bank to bank, the differences are significant.||Banks fix it.|
What is the limit on IMPS?
- You can transfer any amount you wish, including Re.1 with IMPS. The maximum transaction limit is Rs.2 Lakhs.
- Multiple transactions are possible depending on the bank limits and IMPS.
- Recently, India’s largest private bank ICICI Bank allowed its customers to send up to 1000000 rupees per hour through IMPS.
IMPS charges are charged for fund transfers. They range from Rs.2.50 up to Rs.25.
Here’s a list of IMPS fees.
|Transfer amount||Banks may change charges|
|Maximum Rs. 100.000||2.50 Rs + applicable GST|
|Starting at Rs. 10,000 to Rs.1 Lakh||Rs.5 + applicable GST|
|From Rs.1 lakh up to Rs.2 lakh||Rs.15 + applicable GST|
|Above Rs.2 Lakh||Rs.25 + GST applicable or no charge|
- IMPS fees are subject to the bank’s policies, and they can vary accordingly.
Which NEFT or IMPS is best?
- IMPS is the best option for smaller amounts as it can be credited instantly in real-time, available 24*7, whereas NEFT takes up to half an hour to clear and is not available on holidays.
- NEFT, which is a more secure system than IMPS, is better for larger amounts. IMPS cannot be used for larger amounts, i.e. more than Rs.2 crore. For transactions exceeding Rs.2 lakh, one must use RTGS/NEFT. 2 lakh.