IMPS full form | What is IMPS -Process,Benefits,Downsides,FAQs?Explained

 IMPS full form

IMPS Full Form – What is IMPS ? It is a real-time electronic fund transfer facility .IMPS service is convenient as it is quick, IMPS is paperless and does not require sender to have a detailed information of the related bank account to transfer funds.

 
IMPS full form is mentioned below  :
 
Immediate Payment Service

 

What is the IMPS System? The Best, Simplest Way to Pay Your Bills

 

What is the IMPS System?

IMPS is a real-time electronic fund transfer facility which allows bank account holders to make payments through IMPS codes for their utility bills. It is fast, it does not require the sender to know the recipient account and it does not involve the withdrawal of the required funds from the account holder’s account. It is secure and bank accounts are always protected. What is the IMPS Service Fee? The cost of IMPS Service Fee is determined by the Central Reserve Bank of India (the RBI) and hence varies from bank to bank. Some banks also charge a nominal or minimum fee which is basically a small sum to cover their own cost. The latest fee rates are as follows: IMPS service Fee for Jan 2018 Kumari Bank 0.10% IBIC 0.01% ICICI Bank 0.02% IndusInd Bank.

 

How IMPS Works :

IMPS is a real-time electronic fund transfer facility which gives you the opportunity to send and receive funds across any part of the country through the banking networks. IMPS transfers are easy to carry out with all the permissions, and the payments are made instantly. Sending payments by IMPS is free of cost. IMPS Fee Structure There are 3 types of charges to be paid. First, the amount being transferred to the recipient. The IMPS charges are applicable when the amount to be transferred is from 5,000 to 25,000. Second, the charges would be applicable on the receiver of the fund transfer. In addition to the money sent by the sender, the receiver has to pay some charge as well on any amount from 25,000 and above.

 

Advantages of IMPS :

The good thing about IMPS is that there is no physical exchange of funds, neither any documents are required to transfer money from sender to payee, the process of sending money through IMPS is completely paperless. It is also a safe and secure process. The sender can check that the funds are transferred to the payee without visiting a bank branch. It has become the most preferred and widely used method of transferring funds from sender to payee in India. In 2017 alone the IMPS processed a whopping Rs 34,157.48 crores of money as compared to Rs 16,695.67 crores of National Electronic Fund Transfer which is only Rs. 1,473 crores. The Immediate Payment Service (IMPS) scheme of RBI (Reserve Bank of India) was introduced in 2010 as a very secure and fast payments system in India.

 

Disadvantages of IMPS :

Like with any other facility, payments made through IMPS have their own set of inconveniences. Like with any other facility, payments made through IMPS have their own set of inconveniences. Before making a payment through the IMPS System, it is better to know the pros and cons of it. With the increase in volume of retail transactions, the transmission and settlement problems have also increased. The magnitude of the problem is evident from the fact that some bank customers have complained about not getting a proper statement and that there is no standardization on the amounts that can be transferred through it. It is imperative that users check their billing statement thoroughly before transferring funds to avoid complications later on.

 

FAQs about  IMPS :

  • IMPS payments can be made for a maximum amount of ₹ 20 Lakh in general.
  • IMPS payments can be made 24/7 and 365 days in a year.
  • There is no minimum fund transaction limit on IMPS.
  • IMPS payments are end to end encrypted, so no worries of security.
  • Fund transfer charges on IMPS may range between ₹ 2.5 to ₹ 15, excluding GST.

 

Conclusion :

Existing e-payment players are failing to provide the customers an easy to use and convenient payment service. Some of them are unable to deploy products that suit to the demands of the customers. Bankers’ association in India are doing a great job of providing services to customers. Even there is a B2B payment service. But still, a lot of things can be done to improve the existing system to make it more convenient and hassle-free.

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