Understanding the Limitations of IMPS Transfers in India

The Immediate Payment Service (IMPS) is a real-time interbank payment system that has greatly enhanced the ease of money transfer in India. However, it operates under specific limits that users should be aware of to ensure they are making the most efficient and accurate transactions. This article will explore the current limits, including per transaction, daily, and bank-specific limitations, as well as the differences between IMPS, NEFT, and RTGS.

Per Transaction Limit

Per Transaction Limit: The maximum amount that can be transferred in a single IMPS transaction is typically 2 lakh (200,000) Indian Rupees. This limit can vary based on the bank, so it is advisable to check with your specific bank for their precise limits. As an example, the DBS bank's Digibank App allows free unlimited IMPS transactions up to this limit defined for the day.

Daily Transaction Limit

Daily Transaction Limit: Some banks may impose a daily limit on the total amount that can be transferred via IMPS. This limit also varies by bank, so it is essential to verify with your bank for any specifics.

Bank-Specific Limits

Bank-Specific Limits: Different banks may have their own policies regarding IMPS transaction limits. Always consult with your bank to ensure you have the most accurate information.

IMPS vs NEFT vs RTGS

Immediate Payment System (IMPS): IMPS is a real-time interbank payment system launched by the National Payment Corporation of India (NPCI) in 2010. It is available 24/7, except for banks that may have their own operating hours.

National Electronic Funds Transfer (NEFT): NEFT operates on a bank-operated schedule and transfers funds in timed batches. There is no minimum limit for NEFT, but the maximum limit per transaction is Rs. 50,000.

Real-Time Gross Settlement (RTGS): RTGS operates on a real-time basis with a minimum limit of Rs. 2 lakh per transaction. RTGS transfers are processed individually and in full, without batching.

Conclusion

Understanding the limitations of IMPS is crucial for efficient and accurate financial transactions. The per transaction limit is capped at 2 lakh rupees, with daily and bank-specific variations. By choosing the appropriate payment method, users can ensure that their transactions are efficient and meet their needs. For the most up-to-date information, always refer to your bank's guidelines or the NPCI.