IMPS limit using different channels of payment

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Did you know that IMPS Transactions limits may vary from bank to bank?

Key Takeaways

• IMPS stands for Immediate Payment Service
• It is one the quickest ways to send money to bank accounts in India
• Every Bank has a maximum IMPS transfer limit of INR 2 lakhs per transaction.
• The IMPS limit may vary from bank to bank when initiated via different methods like MMID or USSD.
• These transaction limits add an important layer of security to the payment system.

Introduction

IMPS stands for Immediate Payment Service. It is an electronic fund transfer service, through which you can instantly transfer money through your mobile phones. The facility is offered by the National Payments Corporation of India (NPCI). IMPS is a popular method of transferring small amounts of money and comes with various benefits like instant processing of a payment, 24 x7 availability, security, easy accessibility, and SMS confirmation. While multiple transactions are permissible under the IMPS limit per day, there also exists a maximum per day transaction limit.

What is the IMPS limit?

Every bank has a maximum IMPS transfer limit of INR 2 lakhs per transaction. While there is an IMPS maximum limit, there is no minimum limit per transaction. You can transfer funds as low as INR 1 without any hassle. This feature makes IMPS an ideal option for smaller payments. The charges for such payments vary from one bank to another.

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How can you transfer funds using IMPS?

The IMPS facility can be accessed using various channels like mobile phones, internet banking, and ATM cards. One of the following details is required to initiate IMPS transactions –

Account number and IFS Code

You may transfer funds simply by providing the account number and IFSC of the beneficiary. With these details, you can transfer up to INR 2 lakhs per transaction.

MMID and Mobile number

Mobile Money Identifier (MMID) is a seven-digit number issued by banks to make IMPS transactions easy and convenient. The sender needs to input the MMID along with the mobile number in order to initiate the fund transfer. Note that a single mobile number can have multiple MMIDs issued by different banks.

IMPS Transaction limit using MMID might be as low as INR 10,000. This limit varies from bank to bank.

Aadhaar number

Yet another way of making an IMPS transfer is simply by providing the Aadhaar number of the beneficiary. The Aadhaar number doubles as a financial address since it is typically linked to the bank account of the beneficiary, making the transfer easy.

What is USSD? What is the IMPS Transaction limit using USSD?

A significant part of the Indian population still does not use internet-enabled smartphones. With Unstructured Supplementary Service Data (USSD), mobile banking is made accessible to users without a Smartphone or data/internet connection. A *99# code is used to avail this service that aims to achieve financial inclusivity. You can use the USSD service to initiate IMPS transactions. IMPS Transaction limit using USSD is INR 5,000 per transaction. This limit also varies from bank to bank.

Conclusion

IMPS is a significant tool of money transfer in the current era of digitalisation. While the IMPS system is entirely safe and secure, the limits add another layer of security to it. If you choose to avail of this money transfer method, you have to pay a nominal fee each time you make an IMPS transaction. The fee depends on the sums being transferred and ranges as low as INR 2.50 + GST to INR 25+ GST, per transaction, based on the sums transferred.

With the digibank by DBS app, you can open a new savings account in a few minutes and make IMPS transfers. Download the app to get started.

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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.