IMPS stands for immediate payment service, which is provided by Indian banks to their customers to help them carry out the interbank transfer in real time. Customers do not need to wait for the bank to open to transfer money and are free to transfer funds on weekends, holidays, or weekdays. The maximum amount that customers can transfer using IMPS is Rs. 2 Lakh. So here the article gives the advantages and disadvantages of IMPS to better understand this topic.
Pros or Advantages of IMPS:
- The fund transfer can be done using an MMID, an Aadhaar number, or a mobile number.
- IMPS is safe, secure, and cost-effective.
- In IMPS, it is not compulsory to know about the beneficiary’s account number and IFSC.
- IMPS can be used on a mobile phone, in internet banking, and even at ATMs.
- IMPS is available 24 hours a day, even on holidays.
- Using IMPS, the money will be credited to the beneficiary account within a few seconds.
- IMPS serves you with debit card and credit card confirmation by SMS immediately.
- The customers can make intrabank as well as interbank payments.
- They are allowed to transfer up to Rs. 2 lakh through IMPS.
- IMPS has no minimum amount limit on the transaction of funds.
- Some banks only charge 5 rupees plus ST for IMPS transactions. Some banks, like city banks, don’t charge for IMPS transfers.
- You can transfer the funds through various channels like ATMs, Net Banking, SMS, USSD, and mobile applications.
- IMPS money transfer is available for NRI customers to transfer funds from an NRI account to the account of a resident Indian.
- They can make merchant payments or send money at any time of the day.
Cons or Disadvantages of IMPS:
- The transaction limits may vary from bank to bank.
- In IMPS transfers, not all banks may support IMPS transfers.
- IMPS requires a connection to a mobile network or the internet.
- It is limited to transfers within India only.
- For those who choose not to give their mobile numbers, this may be problematic.
- When we start a transfer by using IMPS, there are multiple authentication steps that may require some time for the user to finish.
- Using IMPS may result in transaction fees from some banks.
- IMPS service could occasionally nt be available because of maintenance or technical problems.
- If there is the possibility of entering the wrong recipient information, it will lead to the transfer of funds to the wrong account.
- Additional authentication, like OTP or biometrics authentication, may be required by some banks, which might complicate the procedure and add extra steps.
- Customers may find the service’s mobile device availability to be a drawback.
Thank you for reading this article. If you have any queries regarding our article on the advantages and disadvantages of IMPS, then do leave a comment in the comment section below.
The Immediate Payment Service (IMPS), in its complete form, has transformed India. In conclusion, taking into account the benefits and drawbacks of IMPS, in today’s digital age, IMPS’s ease of accessibility, 24*7 availability, and fast transfers have made money transfers more convenient than ever. However, payment services have their benefits and drawbacks, IMPS also have its advantages and disadvantages.
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