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What is IMPS? - Meaning, advantages & more
IMPS full form is Immediate Payment Service, which is an interbank electronic fund transfer system in India.
But what is IMPS transfer in banking? It is a secure and efficient system designed for real-time transactions, enabling users to send and receive money instantly, making it an ideal choice for urgent payments compared to traditional methods that can take hours or even days.
Now that you know the full form of IMPS in bank, it’s important to understand its uses. With IMPS, you can transfer money instantly from your phone or computer, whether you're sending money to someone, paying bills, or shopping online.
Features of IMPS
- Flexibility: You can use it for various purposes, such as transferring funds, paying bills, or even recharging your mobile phone.
- Fast and easy payment: Whether you are sending money to a family member or settling a bill, the recipient receives the funds instantly.
- Versatile platform: IMPS works seamlessly across different platforms, including mobile banking apps, Internet banking, and ATMs. You can choose the method that suits you best.
- Easy to use: Most banks provide a user-friendly interface for IMPS transactions, making it accessible to all.
- Daily transaction limit: IMPS allows you to transfer up to ₹5 lakh a day. This high transaction limit ensures you can handle significant financial transactions effortlessly.
- Transaction charges: Charges for IMPS transactions are minimal compared to other payment methods. Some banks even offer free IMPS transfers for certain account types.
- Service tax: It’s important to note that these fees are exclusive of the 18% Goods and Services Tax (GST) and may differ as per the policies of individual banks.
For Axis Bank, IMPS charges are:
- It is free for inward transactions. Charges for outward transactions are as follows:
- ₹2.5 for transactions up to ₹1,000
- ₹5 for transactions between ₹1,000 and ₹1 lakh
- ₹10 for transactions between ₹1 lakh and ₹5 lakh
- Safe and economical: IMPS uses robust security protocols, ensuring the safety of your funds. Additionally, it eliminates the need for physical bank visits, saving time and transportation costs.
Types of IMPS transfers
1. IMPS via mobile number and MMID: You can transfer money using the recipient’s mobile number and Mobile Money Identifier (MMID). Both the sender and receiver need to register their mobile numbers with their respective banks.
2. IMPS via account number and IFSC: This involves using the recipient’s bank account number and IFSC. It’s suitable for transferring funds to any bank account in India.
Transferring via IMPS
Via mobile banking
- Log in to your mobile banking app or Internet banking portal.
- Select the IMPS option.
- Enter transaction details, including the amount, and select the payment mode as IMPS.
- Authorise the transaction.
- You will receive SMS and email notifications once your IMPS transfer is successful.
Via Internet banking
- Access Axis Bank's online banking portal and log in with your user ID and password.
- Go to the 'Payments' or 'Funds Transfer' section and select the beneficiary.
- Enter transaction details, including the amount, and select the payment mode as IMPS.
- Review the details and confirm the transaction using an OTP (One-Time Password) sent to your registered mobile number.
- You will receive an email and SMS confirmation once the transaction is successfully completed.
Via ATMs
- Visit an ATM that supports IMPS.
- Insert your Debit Card and select the IMPS option.
- Follow the on-screen instructions to complete the transfer.
Via SMS
Some banks even allow IMPS transfers via SMS. You need to type in a specific format of numbers and special characters to initiate the transaction.
Advantages of IMPS
- Instant transactions: IMPS stands true to its name by providing instant financial transactions. This means the moment you initiate a transfer, the recipient’s account is credited without any delay..
- 24/7 availability: It doesn’t matter if it’s the middle of the night, a weekend, or a national holiday; IMPS is always at your service. This feature is particularly beneficial for emergency payments or when traditional banking hours don’t align with your schedule.
- Secure: Security is a paramount concern when it comes to financial transactions, and IMPS addresses this with state-of-the-art encryption and authentication protocols. These measures ensure that your hard-earned money is transferred safely, giving you peace of mind with every transaction.
- Convenient: IMPS transforms your banking experience by offering unparalleled convenience. There’s no need to visit a bank branch, stand in queues, or fill out tedious paperwork. Whether you’re at home, work, or on the move, you can perform transactions effortlessly using your mobile phone or computer, saving you time and hassle.
IMPS charges and transaction limits
The Reserve Bank of India (RBI) has set the IMPS limit at ₹5 lakh per day, allowing for larger transfers. For IMPS, banks typically charge a fee, which is based on the amount of the transaction. The fees for IMPS transfers in most banks are shown in the table below:
| Amount (outward transactions) | Fee per transaction |
|---|---|
| Up to ₹1,000 | ₹2.50 + GST |
| ₹1,000-₹1 lakh | ₹5 + GST |
| ₹1 lakh-₹5 lakh | ₹10 + GST |
Also Read: How to Send Money to India 5 Easy Ways?
Conclusion
IMPS is a game-changer for the way we handle money transfers. It's quick, safe, and can be used for all sorts of payments. The IMPS meaning in bank goes beyond just a simple fund transfer—it's about convenience and security. Next time you need to transfer funds, consider using IMPS for a hassle-free experience.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
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