April 26, 2023

What is IMPS - Transaction Charges and How to Transfer Money Online

Immediate Payment Service (IMPS), which was introduced in 2010, marked the culmination of the collaborative efforts of the NPCI (National Payments Corporation of India) and the RBI (Reserve Bank of India) to simplify payment transfers.
IMPS is a popular method of instantly transferring money across bank accounts. So, we'll take a look at IMPS's meaning, various facets of IMPS usage, and its significance in this blog. Let's get started.

What is IMPS?

IMPS is a real-time electronic money transfer mechanism that immediately credits money to the payee or beneficiary account. Interbank transactions can be initiated via IMPS using various means, including mobile banking, internet banking, ATMs, SMS, etc. The daily IMPS limit for transactions is ₹5 lakhs.
This technology served as the foundation for the modern FinTech industry. For example, UPI is an IMPS variant that wouldn't have been possible without the invention of this technology first.

Features of IMPS

Thanks to the IMPS facility, users in India can now make payments more quickly. Here are a few of its main characteristics:
  • It facilitates secure interbank money transactions.
  • The participants for IMPS include a sender, receiver or beneficiary, banks, and NPCI.
  • IMPS transactions are compatible with both mobile and online banking systems.
  • You can use a beneficiary's Mobile Money Identifier (MMID) or contact number to transfer money to them over the IMPS platform.
  • IMPS supports the Reserve Bank of India's (RBI) initiative to digitise retail payments.
  • When carried out via smartphones, IMPS transactions do not always require the beneficiary's bank account information.
  • Both the sender and the receiver are notified after the money transfer has been completed successfully.

Necessary Information for IMPS Transactions

An IMPS payment must include at least one of the beneficiary's information listed below:
  • Aadhaar ID
  • Mobile numbers and the Mobile Money Identifier (MMID) for the sender and receiver
  • Bank account number and IFSC code (an 11-digit code present in the user's chequebook)

Charges in IMPS transactions

A set of charges accompanies each IMPS transaction. These IMPS charges are determined by the amount transferred and a service tax of 18%. The fees, however, are at the discretion of each bank.
The following fees are charged for IMPS transactions, excluding Goods and Service Tax (GST).
  • For transfers up to ₹10,000- ₹2.5.
  • For transfers between ₹10,000 and one lakh rupees- ₹5.
  • For transfers between ₹1 lakh and ₹2 lakh- ₹15.

How to transfer money via IMPS?

There are two ways to transfer money using IMPS:
  • P2A or Person to Account number: In this method, you can transfer funds to the beneficiary's bank account by entering the recipient's or beneficiary's account number and IFSC code.
  • P2P or Person to Person: You can send money by entering the recipient's or beneficiary's mobile number and MMID.
You can transfer money using the IMPS function on mobile and net banking systems and ATMs. The steps taken in each of the situations are listed below:

Steps for IMPS transactions using internet banking:

  • Access the online banking website of your bank.
    • Add a beneficiary by providing the recipient's name, IFSC code, account number, account type, and contact information.
    • Once your bank has approved the addition of a beneficiary, use the money transfer tab and choose the beneficiary you wish to send money to.
    • Verify the transaction, and you're done! The beneficiary's account will receive the money right away.

Steps for IMPS transactions via mobile banking

  • Open the mobile app of your bank.
  • Add a beneficiary if you still need to do so.
  • Input the beneficiary's contact number after selecting the money transfer or send money option.
  • Put in the beneficiary's MMID and the amount of money you want to transfer.
  • The funds will be transferred immediately after you input your mPIN to verify the transfer.

Steps for IMPS transactions via ATM

  • Visit the ATM of your bank.
  • Choose a language, then enter your pin.
  • Choose "Other Services" from the menu screen, then "Fund Transfer," then "IMPS Fund Transfer."
  • Enter the beneficiary's mobile number.
  • Next, enter the MMID and the transfer amount.
  • Verify the transaction and select the account from which to debit the funds.
  • Confirm the details and the transaction.

Things to Keep in Mind with IMPS transactions

  • Never divulge any OTP you receive.
  • Keep your debit card information private
  • Never divulge your net/mobile banking login information.

Benefits of IMPS

1. Real-time transactions are performed.

The IMPS has altered consumer perceptions of electronic payments and money transfers. A person can use the IMPS function to send money to family or friends immediately anytime they need to, so the benefit extends beyond simple purchases. Moreover, it doesn't take long for the beneficiary to get the money; the transactions occur within seconds.

2. The consumer has a variety of payment options.

Although many people are already used to paying using their smartphones, IMPS also works with payment methods that don't require an internet connection.
In addition to internet and mobile banking, customers can also make payments by plain old SMS. They can also use ATMs to do this. As a result, it can be said that consumers from all social strata can use this method of payment.

3. The transaction process is relatively straightforward.

An application's widespread acceptability is frequently attributed to how user-friendly it is. The IMPS is no different.
All you need to do is add a beneficiary to start making transactions to that beneficiary's account. The process of adding a beneficiary is quite simple- provide all necessary information like name, account number, IFSC codes or MMID, etc., and you are all set to transfer money.
Depending on your bank, you can send the necessary amounts to a beneficiary in less than 30 minutes. All subsequent payments are immediate once the initial transaction with a new beneficiary has taken place.

4. Transactions can be done anywhere, anytime.

One benefit of IMPS is that it is available around the clock every day of the year, including bank holidays. You might not be able to use NEFT or RTGS during bank holidays, but with IMPS, you can rapidly transfer money without any problems.

5. Integrated security measures

Consumers worry about mistakenly using unreliable sources that could result in the loss of their money. The NPCI's IMPS is a service you can rely on and feel safe to use.
Banks take steps such as requesting PINs and providing OTPs as identification verification to guarantee that no one can access your account to make unauthorised money transfers. Furthermore, you do not need to worry about the money "being lost" along the route if you input the beneficiary's data correctly.

Conclusion

In conclusion, IMPS services are quick and reliable. Along with altering consumer expectations and behaviour, IMPS enabled newer fast payment services to thrive in India. Customers can utilise this method without a smartphone, which increases its financial inclusiveness and makes it a fantastic payment alternative for the general public!

Never miss a trading opportunity with Margin Trading Facility

Enjoy 2X leverage on over 900+ stocks

Upstox Margin Trading Facility
Apple Logo
Downloadlogo
iOS App
Google Play Logo
Downloadlogo
Android App

RELATED ARTICLES

HDFC Bank NetBanking - Online Login, Registration, & Activation

' Click-Click' , vyola! it's done. Be it your order from your favorite restaurant or planning your vacation or paying your utility bills, the pace of digitization of services across industries over the last decade has indeed been transformational and overwhelming. We as consumers are now increasingly using digital technology, given its obvious benefits of convenience, speed of execution, security and access to information and enhanced decision making. Let me explain this net banking funda in detail; you may come across a few technical words, don't get bogged down by this, I promise to keep it as simple as I can. Basically, net banking is using your laptop or desktop or your smartphone to carry out your banking transactions through a 'click of a button' instead of visiting your local branch to execute your transactions. Say for example, you need a cheque book, instead of physically visiting the branch, you could place a request online. With a click of a button, you can pay your insurance premiums, your EMIs, your utility bill online. You can avail a loan, transfer funds, generate e- account statements and many more services at your convenience. So basically, through net banking the customer can access his/her account information, products and other services through the Internet at his/her convenience. At this juncture, you may be eager to know as to how to get started with net banking, isn't it? However, as a first time user you may have some resistance, don't worry as the process is very simple. Let me elaborate on this. - To begin with your NetBanking endeavour, you decide to open a simple online savings account with HDFC Bank by logging into the bank's web portal, www.hdfcbank.com through your mobile phone or laptop/desktop. - Secondly, you need to provide basic KYC documents to open a savings account such as your Aadhar card and two passport size photographs. You then submit the KYC documents online and verify yourself through a video call by providing access to your location, microphone and camera on your smartphone with HDFC Bank officials. - You then click on the ' Login' icon which asks you to enter customer ID and password. - As a first time user, you will be provided with customer ID and account number. - You can now begin operating your savings account by creating your own password. - By confirming your registered mobile number, you then input OTP ( One Time Password) which you will receive on your mobile phone - You then input your debit card details ( you would have received this card as a part of the welcome kit) - Set your IPIN (Netbanking password) - Login to HDFC netbanking using the newly set IPIN. Hope we are on the same page. Just wanted to elaborate further, in addition to the online medium, you can also register with HDFC netbanking services through various mediums such as: - ATM - Phone Banking - Visiting HDFC Bank branch

A Historical Analysis of Demonetisation: Lessons from Around the World

Demonetisation is a significant policy decision that various countries have implemented worldwide to address economic challenges and promote financial reforms. In this blog post, we will explore the concept of [demonetisation](https://upstox.com/savings-account/what-is-demonetisation-meaning/), highlight several countries that have undertaken this measure, including India, and examine the motivations, impacts, and lessons learned from these exercises. Let's dive into this fascinating topic.

How Many Different Types of Bank Cheques in India

There are several types of financial instruments that can be used for payment, including cash, checks, credit and debit cards, electronic transfers, and digital currencies. Cash is the most commonly used form of payment, but it can be easily lost or stolen. Cheques, which are written orders to pay a specific amount from an account, can be used to pay bills or withdraw cash. Credit and debit cards allow consumers to make purchases or withdraw cash using a credit or debit card account. Electronic transfers, such as wire transfers and ACH transactions, enable the transfer of funds between accounts. Digital currencies, like Bitcoin, are decentralized digital assets that can be used to make payments.

What is mPassbook & How to Get Mobile Passbook: Charges, Features, & Benefits

Any person with a bank account has to have used a passbook. A [ savings account](https://upstox.com/savings-account/what-is-savings-account/) or current account's transactions are recorded in this book, which the bank provides. A bank employee or teller is used to manage passbooks and records the transactions in the books. The teller was required to sign in the book to attest to the bank's approval of the transactions. This did, however, provide room for human error and factual deception. Modern passbooks were created to be easily integrated with computers to eliminate these issues. You no longer need to visit a teller to write transactions and sign the book. Banks have automated tellers that are set up to record transactions following your account information. Your account information is stored on a Bar-Code carried by modern passbooks. Place the book into the device, and it will automatically write the transactions. However, this was only the beginning of banking process automation. The mpassbook is another novel idea that has recently gained much popularity.