What is the Limit for IMPS Transfer?

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With an emphasis on transferring funds in real-time, IMPS or the IMPS full form of Immediate Payment Service, was introduced by the National Payments Corporation of India (NCPI) and the Reserve Bank of India. It was initiated by the NCPI in 2010, after a pilot study with 4 banks was undertaken to gauge its efficacy. Now, an association of 150+ banks is involved. Funds from one bank/finance company can be transferred to a beneficiary bank/finance company instantly at any hour of the day, any time of the year. These transfers take place on holidays too, and there is no restriction on the times of operation. This makes it a great fund transfer platform in the case of emergencies.

Various IMPS Transfer Limits

Your funds can be transferred via net banking and platforms of mobile banking. This system is used for transferring funds in INR only, within India. The maximum amount that can be transferred, that is the IMPS limit of the maximum amount of rupees, is 2 lakh INR. This is the maximum limit that can be transferred per transaction. Any amount of more than 2 lakh INR will not be processed and will be resent to your account. Depending on the bank in question, multiple transactions may be possible. For instance, HDFC Bank allows five such IMPS transactions in a day. The specified limited minimum amount is 1.00 INR, and all funds transferred are charged GST as an additional charge. Individual banks have fund categories for the rate of GST charged on amounts transferred by IMPS. Some of the key banking organizations that have the following charges with categories charged for are mentioned here as examples:

  • State Bank of India – Recently the State bank of India has waived any extra charges on IMPS transfers.
  • HDFC Bank – Between 1,000 INR and 10,000 INR, 3.50 INR plus GST is charged.
  • ICICI Bank – Upto 10,000 INR, 5.00 INR plus GST is charged.
  • Punjab National Bank – Upto 5 lakh INR, 5.00 INR plus GST is charged.

You can find out more about charges and categories of fund transfers at Finserv MARKETS.

Time Limits on IMPS Transactions

The mode of transfer of funds by Immediate Payment Service or IMPS is made in real-time. As the name of the service suggests, you can opt for online transfers of funds and these get credited to the beneficiary’s account (in a bank or other financial organization) instantly. Moreover, this service can be availed throughout the year, after banking hours and on holidays 24 x 7. Hence on transfers by IMPS time limits do not apply. This is the main reason why IMPS is preferred over other transfer transactions like NEFT or RTGS. Moreover, you can have the availability of IMPS anywhere and access it online, which makes it advantageous to the new generation of banking customers.

Conclusion and Reflections

IMPS or Immediate Payment Service (IMPS full form) is versatile and can be used for purposes other than simply transferring and receiving cash. Payments may be classified as P2P and P2M payments as well. Both these can be effectively used for the purpose of shopping online, paying insurance premiums, making fee payments to schools/colleges, paying utility bills, etc. It’s likely you’ll get much more information about IMPS and its limits pertaining to different banks at Finserv MARKETS.

Sources:

  1. NEFT Limit, NEFT Transfer Limit, NEFT Limit Per Day,Maximum Limit (paisabazaar.com)
  2. Difference Between NEFT, RTGS & IMPS – Transfer, Limits, Charges (bankbazaar.com)
  3. IMPS (Immediate Payment Service) – Instant fund transfer | NPCI