The Buyt Desk
You can transfer money online instantly round the clock through National Electronic Funds Transfer (NEFT), Real Time Gross Settlement(RTGS) and Immediate Payment service (IMPS). Out of the three IMPS is the most instant transfer of funds as compared to NEFT. Though RTGS allows immediate payment it is suitable only for those who want to send a large amount. The RTGS enables large value transaction and the minimum amount that can be transferred is Rs 2 lakh. As far as NEFT is concerned you can transfer as low as Rs 1 but its not an immediate transfer. NEFT takes around half an hour to 2 hours to get credited. There is no transaction charge on NEFT transfer done through net banking but NEFT transfer at the bank branch will attract some charge. This varies from Rs 2 to Rs 25. The charges may differ from bank to bank. Similarly for RTGS banks will take a fee of Rs 25 to 50 plus taxes.
How is IMPS different?
If you are looking for an immediate transfer of money then IMPS is the right choice. The acronym IMPS stands for – Immediate Payment service which enables instant transfer of money between two accounts. You could either use mobile banking or internet banking for this transfer. It is available 24 hours and 365 days and works even on the weekend and public holidays. You can transfer as low an amount like Rs 5 and but on the upper side, you can’t transfer beyond Rs 2 lakh.
IMPS charges
Transaction charges on IMPS depend upon two factors- the amount that you are transferring and the bank fee which will vary from bank to bank. State Bank of India charges no fee for the transfer of amount up to Rs 1000. But just as the amount goes beyond Rs1000 there is a fee levied. If the amount is between Rs 1000 – 1 lakh then a charge of Rs 5 is taken and for the amount ranging between Rs 1- 2 lakh SBI charges Rs 15 plus taxes. ICICI bank takes a transaction fee of Rs 5 for an amount ranging from Rs 1000 – 1 lakh and Rs 15 plus tax for an amount between Rs 1 – 2 lakh. These chargers have to be paid by the person who is sending the fund. The receiver has to pay no charge on receiving the fund through IMPS.
How IMPS works?
You can transfer money through the banking app on your mobile phone or use internet baking. When you choose to transfer fund the bank automatically gives you the 3 options of fund transfer- IMPS, NEFT and RTGS. Depending upon the amount you want to transfer you choose the route out of the three. If you want to transfer fund frequently without feeding in the IFSC code and other banking details then you can generate a Mobile Money Identifier(MMID) with your bank and use this ID to transfer money. The beneficiary should also have an MMID to receive the money. Fund transfer can happen without MMID if you have the beneficiaries detail in your payee list.
Advantages of IMPS
The advantages of IMPS which makes it more user friendly are-
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Flexibility- It is available round the clock and works even on days of public holidays like Saturdays and Sundays.
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Instant transfer- IMPS is an instant transfer of money. The money reaches the beneficiary immediately unlike RTGS and IMPS which takes 30 minutes to 2 hours for the transaction to complete.
