If you frequently use your mobile banking app for instant money transfers, your wallet might feel a slightly heavier pinch starting soon. Several of India's largest banks have announced they will begin charging fees for transactions made through the Immediate Payment Service (IMPS), a service that was previously free for many customers.
What Exactly is IMPS?
Before we dive into the charges, it's important to understand the service in question. The Immediate Payment Service (IMPS) is a real-time interbank electronic funds transfer system managed by the National Payments Corporation of India (NPCI). Its key advantage is that it operates 24/7, including weekends and holidays, allowing users to send and receive money instantly at any time.
A Bank-by-Bank Breakdown of the New IMPS Charges
1. State Bank of India (SBI) SBI's new charges will be effective from August 15, 2025.Transactions up to ₹25,000: Free of charge₹25,001 to ₹1,00,000: ₹2 + GST₹1,00,001 to ₹2,00,000: ₹6 + GST₹2,00,001 to ₹5,00,000: ₹10 + GST2. Canara Bank Canara Bank has introduced a multi-tiered fee structure.Up to ₹1,000: Free₹1,001 to ₹10,000: ₹3 + GST₹10,001 to ₹25,000: ₹5 + GST₹25,001 to ₹1,00,000: ₹8 + GST₹1,00,001 to ₹2,00,000: ₹15 + GST₹2,00,001 to ₹5,00,000: ₹20 + GST3. Punjab National Bank (PNB) PNB offers a slight discount for online transactions compared to branch-initiated transfers.Up to ₹1,000: Free₹1,001 to ₹1,00,000: ₹5 + GST (Online) | ₹6 + GST (Branch)Above ₹1,00,000: ₹10 + GST (Online) | ₹12 + GST (Branch)4. HDFC Bank HDFC Bank's revised rates start from August 1, 2025, and include a discount for senior citizens.Up to ₹1,000: ₹2.50 (Regular) | ₹2.25 (Senior Citizen)₹1,001 to ₹1,00,000: ₹5 (Regular) | ₹4.50 (Senior Citizen)Above ₹1,00,000: ₹15 (Regular) | ₹13.50 (Senior Citizen)
Fact Check & What This Means For You
The information regarding the new IMPS fee schedules has been officially communicated by the respective banks through their websites and customer notice portals. This is a verified change in policy.While the new fees are relatively modest for smaller transactions, they mark a significant shift in how banks price digital services. For frequent users or those transferring larger sums, these costs can add up over time.
Smart Alternatives to Consider:
UPI: For transfers up to ₹5 lakh, UPI remains a completely free and instant alternative. It is highly recommended for most day-to-day peer-to-peer and merchant payments.NEFT: If timing isn't critical, NEFT transfers are still free for savings account holders if initiated online. However, they are not real-time and operate in half-hourly slots.Plan Your Transfers: For amounts just above a free threshold (e.g., sending ₹26,000 via SBI), consider splitting the payment into a free UPI transaction and a smaller IMPS transfer to avoid fees.