Data from the National Payments Corporation of India (NPCI) suggest that fund transfer through Immediate Payment Service (IMPS) crossed Rs.3,23 lakh crore in the first quarter of 2018-19. This is close to double the amount that was recorded in the previous financial year. Currently, banks offer different limits for daily and monthly transfer of funds through the IMPS facility.
Immediate Payment Service is an instant electronic fund transfer facility that helps in moving funds between bank accounts. It is convenient and offers round-the-clock fund transfer service.
The amount transferred through IMPS for Q1 of 2017-18 stood at Rs.1,74,419.45 crore, while that for Q1 of 2018-19 was at Rs.3,23,826.79 crore. Data from NPCI also indicated that 34.66 crore IMPS transactions were made in Q1 of 2018-19, whereas, 19.76 crore transactions were made at the same time last financial year.
The number of IMPS transactions crossed the figure of 10 crore in March 2018. The report also indicated that it reached the highest number of 12.04 crore in June 2018.
IMPS is a facility that was added to banking services towards the end of the year 2010. Before this, customers were only using RTGS and NEFT for funds transfer during banking hours.
The demonetisation drive spearheaded by the Modi government has been instrumental in accelerating the acceptance of digital payments and electronic fund transfers in India. Although the demonetisation exercise led to cash shortage at the time it was announced, banks and ATMs are back to normalcy now.
Fund transfer through the Immediate Payment Service facility was in the range of Rs.32,480.53 crore in the month of November 2016, and it has seen a gradual rise since then.