What is IMPS in Bank?

It's very common and important to know about the IMPS as nowadays everything has become digital. So it's important to know What is IMPS in Banks. So here we are going to tell you about IMPS which is a payment service for customers who want to pay their money instantly. 

What is IMPS?

IMPS stands for Immediate Payment Service, So through IMPS, a person can receive or send money instantaneously and do inter-bank transactions by using mobile or online banking. It is facilitated by the NPCI which stands for National Payment Corporation of India.

IMPS is a banking service for customers that is available 24/7 hours, thus making it a highly flexible payment service.

Features of IMPS

Here are the important features of Immediate Payment Service (IMPS) in banking and fund transfers:

• Fast and Easy Payment: The IMPS allows the customer quick and easy fund transfers where the customer can access a bank account through a mobile phone and also make sure to make secure inter-bank fund transfers. So as soon as funds are transmitted, the sender credits and the debit notices.
• Easy to Use: Immediate Payment Service is easy to use as compared to other electronic fund transfer methods. So the quick and simple transaction, the IMPS necessitates mobile banking. So to utilize these services, you must have a mobile facility in your associated bank account as they work through the bank mobile application.

• Flexibility: IMPS allows users to transfer funds at any time and from any location online, so this service runs smoothly throughout the year, on public and bank holidays.
• Versatile Platform: Here the fundamental aspect of IMPS is its versatility, as it ay be utilized in various modes. Person-to-merchant payment can also be made here with the help of IMPS, and it can be used to pay for insurance premiums, over-the-counter purchases, internet shopping, transport, utility bills, ticketing, and college, school, and university fees.
• Service Tax: The Immediate Payment Service transaction may also levy an additional service tax. So this tax is typically governed by the prevailing tax regulations. And it can vary depending on the specific bank and the transaction.
• 24/7 Inter-bank transfer: The Immediate Payment Service provides a robust and real-time fund transfer option that operates round the clock, as it also allows the customer to transfer the fund instantly between the banks, also ensures convenience and accessibility, irrespective of time and location.

Benefits of IMPS

Here are some advantages of IMPS which is one of the most commonly used methods of transfer, which offers many advantages that have contributed to the popularity, so here are the key advantages of IMPS.

• Accessibility on multiple platforms: The IMPS can be accessed through both mobile banking and Internet banking, which offers flexibility and convenience to customers. 
• Easy Beneficiary Addition: So adding the beneficiaries for the Immediate Payment Service (IMPS) transaction which is a hassle-free process.
• Versatile Usage: IMPS offers more than just transferring money between bank accounts, as it can be also used for receiving payments, performing mobile banking transactions, making payments to merchants, and many more. 
• Fast, Safe, and Reliable: IMPS provides a fast and reliable method of transferring funds. Transaction processing in real-time, ensuring immediate transfer of the money between the account of the receiver and giver. 
• Availability of 24/7: This is one of the significant advantages of Immediate Payment Service (IMPS) as it's available round the clock which is 24/7 hours. 
• Instant Notifications: Here the IMPS ensures that both the payer and the payee receive immediate notification from the bank upon the completion of a transaction that the transaction is done. 

IMPS Charges List of Different Banks

Here the customer must pay certain charges against very Immediate Payment Service (IMPS) transactions depending on the amount. The IMPS charges usually range from INR 2.50 to INR 25 for the amounts of INR 10,000 to INR 5,00,000. The IMPS charges for several banks in India which are listed in the given below table.

List of Banks	IMPS Charges
Kotak Mahindra Bank	No charges
State Bank of India	No charges
HDFC Bank	INR. 3.50 – INR. 15.00
ICICI Bank	INR. 3.50 – INR. 15.00
Canara Bank	INR. 5.00 – INR. 18.00
Bank of Baroda	INR. 2.50 – INR. 25.00
Axis Bank	INR. 2.50 – INR. 10.00
Punjab National Bank	INR. 6.00 – INR. 12.00
AU Small Finance Bank	INR. 10

IMPS Transaction Charges

Here  are  the charges applicable for outward IMPS which exclude applicable Goods and Services Tax (GST):

• Transactions exceeding INR. 1,00,000 the charges are INR 15 plus applicable GST.
•  Transactions between INR. 1,001 and INR. 1,00,000 the charges are INR 5 plus applicable GST.
• Transactions ranging from INR. 0  to INR 1,000, the fees are INR 15 plus applicable GST.

IMPS Limit

According to a LiveMint news article in October 2021, RBI is considering the all-increasing demands for this payment system as the Reserve Bank of India increased the daily limit for IMPS from 2 Lakh to 5 Lakhs to meet the growing demands of users and businesses.

IMPS Transfer Time

So usually, the IMPS services are available 24x7 hours for the transaction. IMPS transfers are processed instantly but funds are credited within minutes. In some cases of a technical issue, money will be credited within an hour.

 So overall, the Immediate Payment Service (IMPS) provides a reliable and efficient method for instant fund transfer. But there are a few banks that may have restrictions on IMPS timing from 8 AM to 8 PM which is due to fraudulent activities.

Also Read - How to Open a Kotak Mahindra Bank Zero Balance Account

Types of IMPS Transfers

This classification helps the customer to choose the most convenient method for their IMPS transaction based on their and their beneficiary banking details. IMPS in banking can be divided into two primary categories:

IMPS through Account number and IFSC

Here you can send money by using the beneficiary bank account along with the Indian Financial System Code (IFSC). This approach is more suitable if the beneficiary has not registered any mobile banking with their bank, so first, ensure to have the correct bank name and branch details to facilitate a smooth transaction.

IMPS through Mobile number and MMID

Well, this method allows the customer to transfer the money by using the beneficiary's mobile number and their Mobile Money Identifier (MMID), as a seven-digit code associated with a specific mobile number. 

So to complete the transfer, then both you and the recipient must have registered your mobile number with your respective banks. So here you can request your bank to provide your MMID, while the beneficiary can receive it from their bank and share it with you.

Conclusion

In conclusion, here we have mentioned all such details, that you have to know about what IMPS is in banks. And also discusses what is IMPS, charge, time, features, advantages, and many more. We hope the given information in this blog about “what IMPS is in banks” is helpful and informative.