DIGITAL BANKING | MOBILE BANKING | IMMEDIATE PAYMENT SERVICE (IMPS)
Immediate Payment Service (IMPS) is a way of transferring money from one bank account to another bank account in the Indian Banking System. This system of IMPS has enabled 24x7x365 real-time, electronic money transfers & interbank transfers at a time when there were only NEFT & RTGS facilities were available in Indian Banking System. Citizens could access this facility through the help of multiple channels for example mobile phone, the internet & ATM.
IMPS is built on the National Financial Switch (NFS) & NPCI (National Payments Corporation of India) manages this network system and it has been approved by RBI.
It started as a pilot program by NPCI where at first only 4 banks offered named State Bank of India (SBI), Bank of India (BOI), Union Bank of India (UBI), and ICICI Bank the facility of IMPS in 2012 which has grown to 150+ banks today & including 53 commercial banks, 101 districts/rural/urban, & cooperative banks.
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Immediate Payment Service (IMPS) is a service that is provided by banks to offer real-time interbank funds transfers. Through IMPS we can transfer funds on weekdays including any holiday or weekend, unlike NEFT.
IMPS’ main purpose is to make the transfer of funds easy & convenient for bank customers as well as to support the RBI’s goal of retail payments electronification. IMPS provides a foundation that offers a full range of mobile banking services.
For an IMPS transaction, the 4 major involved parties are:
- Remitter (Sender of funds)
- Beneficiary (Receiver of funds)
- Banks (provider of IMPS)
- National Financial Switch (NFS)
USES OF IMPS
The service of IMPS can be used by Customers for the following purposes:
- To transfer funds
- To receive payments
- To make payments to a merchant
- To perform mobile banking transactions
- To check the status of Aadhaar Seeding with the bank account
DETAILS NECESSARY FOR MAKING AN IMPS TRANSACTION
One would need any of the following mentioned details to make a payment or to transfer funds with the help of IMPS:
- Mobile No. & Mobile Money Identifier (MMID)
- Bank Account No. & IFSC: Indian Financial System Code
- Aadhaar No.
IMPS can be transacted 24 by 7 on a typical day. But there are some banks that may restrict some time to add a new beneficiary to make a new funds transfer.
For instance: SBI allows its customers to add new beneficiaries from 6 a.m. to 8 p.m. So if a customer adds a new beneficiary beyond 8 p.m., it will be available for IMPS money transfer only after 6 a.m. the next day. Therefore, one needs to confirm with their bank about the timings that work for IMPS transfer.
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IMPS has a transaction limit set which is up to Rs.2,00,000.00. But there are some banks that can set their own upper limit for IMPS transactions. This could also be the case that the transaction limits could be constrictive after adding a new beneficiary. One needs to check with your bank and confirm the limit before initiating any fund transfer transaction.
On every IMPS transaction that you make, you have to pay a certain fee. This fee depends on the transfer amount. In addition to this fee, a tax rate of 18% GST is also charged on the applicable fee. Below given that shows the cancellation of IMPS transaction charges:
|Transfer Amount||Transaction Charges (Excluding GST)|
|Rs.1 lakh-Rs.2 lakh||Rs.15.00|
Note: The above-mentioned charges could vary depending on the bank’s own discretion.
MAKING AN IMPS MONEY TRANSFER
- IMPS transactions can be made by the following methods:
- Through SMS (Mobile Banking)
- Through net banking or mobile application
- Through internet banking on the laptop, desktop, or Tablet.
- ATM cards using ATMs
PROCEDURE TO MAKE AN IMPS TRANSFER
One can make an IMPS transaction by following the below-given procedure:
- Select the channel through which you want to transact IMPS transactions.
- Login by using your credentials.
- Then enter the MMID as well as the mobile number of the recipient oh you can also enter the account number of your bank and the Aadhaar No. or IFSC as well.
- Now you would need to enter the amount that you want to transfer.
- You can also enter the purpose for which you want to transfer the money or even add any other remark.
- Then you need to enter a PIN so as to provide authentication to the transfer request.
- After all the above steps, the transfer will begin successfully,
- Once it’s complete, both the parties will receive confirmation through SMS
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Amount not debited: In case the IMPS transaction that you had initiated fails or it times out, you need to check whether or not your money has been debited from the account. And if the amount hasn’t been debited, you can just go & begin from the start to start another transaction after a few minutes.
Amount debited: In case your money has been debited from your account, you need to keep a lookout for the reversal of the transaction. The unsuccessful transaction usually gets adjusted within two working days & you can expect your debited money back in your account. Or you can check it with the beneficiary itself to know if he/she has received the money or not. If the beneficiary doesn’t receive the money in their account you need to contact the customer care executive of your bank for assistance.
NEFT vs. IMPS vs. RTGS
NEFT: Even though both NEFT & IMPS are used for interbank money transfers but they both are different in the way they work. You can transfer money through NEFT only during business hours. If you were to initiate an NEFT transaction after business hours then you can expect to complete it only on the following business day in the working hours. There is no charge applicable to transfer money through NEFT.
IMPS: With IMPS service one can do a money transfer transaction at any time of the day irrespective of the working hours of the bank. Even though there is a transaction fee when you transfer money through IMPS, it is still preferred because the beneficiary gets the funds in their account immediately.
RTGS: It is like NEFT in respect of its service timing. The transfer with RTGS can be initiated for intra-bank transfers between 7 a.m. to 6 p.m. and for inter-bank transfers between 7 a.m. to 7:45 p.m. There’s also the fact that the RTGS can be utilized for transactions Rs.2,00,000.00 & above. Although the IMPS transaction’s upper limit can also be defined by the bank itself. And one can initiate RTGS in the operational hours too but there could be a few conditions applicable for that.
TRANSACTING THROUGH IMPS
One can choose either of the following modes to transfer money through an IMPS transaction:
- Mobile Banking
- Internet Banking
Well, this is all about IMPS, which you need to know on a theoretical basis at least. You can also go through some other notes of Digital Banking on our website.
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