Instant Money Transfer (IMT)

• Initiation: The sender logs into their banking app or portal and selects the IMT option.
• Input Details: Required details like recipient’s mobile number or account number, bank IFSC code (if using IMPS/NEFT), and the transfer amount are entered.
• Authentication: The sender authenticates the transaction using a PIN, OTP, or biometric verification.
• Processing: The bank verifies the details and transfers the amount instantly via a secure channel.
• Confirmation: Both sender and receiver get an SMS or app notification confirming the successful transfer.

IMT services are available 24x7, including weekends and holidays, offering seamless convenience and speed.

Advantages of Instant Money Transfer

1. IMT is an instant service and, therefore, saves the parties involved in the transaction a considerable amount of processing time.
2. Both parties receive confirmation and details of money sent and received and privacy is maintained individually.
3. Most banks have a low service charge rate for this service.
4. The IMT system allows its users to maintain historical data via SMS of transactions.
5. The IMT system reduces the need for physical instruments to be transported and the amount of paperwork required to perform transactions.

Instant Money Transfer: Charges and Fees

While Instant Money Transfer services offer speed and ease, there might be nominal charges depending on the method and the bank. Here’s a breakdown:

1. UPI (Unified Payments Interface): Most UPI transactions are free of charge, especially for individual users.
2. IMPS (Immediate Payment Service): Banks may charge a nominal fee based on the transaction amount. Charges typically range from ₹2.5 to ₹25 + GST.
3. NEFT/RTGS via Mobile or Internet Banking: While NEFT is mostly free for individual customers, RTGS may attract a fee for high-value transactions (typically above ₹2 lakhs).
4. Third-party Apps (like Paytm, PhonePe, etc.): Usually free, but wallet-to-bank or credit card transfers may have convenience fees.
5. ATM-based IMT Services: Some banks offer ATM-enabled IMT services that allow cash withdrawals without an account, which might involve transaction fees.

Usage of Instant Money Transfer

IMT allows users to transfer money instantly and, therefore, the feature is available 24x7. The IMT feature can be optimally used under the following circumstances:

1. The recipient is in need of cash urgently.
2. The transfer need to be made in cash.
3. The recipient does not possess a bank account.
4. The recipient's bank account number is not available.
5. The cash is not deliverable to the recipient.

Instant Money Transfer Processing

The IMT service is completed in two phases, the initiation of the request and the withdrawal of the cash. Both these phases have been discussed in detail below:

Initiation of IMT

A customer can initiate the IMT feature online by logging into the internet banking portal and initiating IMT. The recipient is registered under this feature instantly on a one-time basis by entering the recipient's name, mobile number and the recipient's address details. A transaction with a registered recipient can be initiated using the recipient's mobile number and the IMT amount. Once the IMT is initiated the recipient will receive an SMS on their mobile phone with the details of the IMT transaction. The details in the SMS should be as follows:

1. The amount transferred via IMT
2. A unique SMS code generated by the bank to authorize withdrawal
3. A unique IMT code which is specific to each transaction
4. The expiry date of the IMT

Withdrawal via IMT

After the amount is transmitted to the recipient and the IMT details have been received, the recipient may access an ATM of the payee's bank network and opt to withdraw the cash offline via IMT. The ATM will require certain details, such as:

1. The recipient's mobile number
2. The payee's IMT code
3. The IMT SMS code
4. The amount transferred via IMT

After verification of the details the ATM will dispense the cash transmitted via IMT. After the usage of the SMS code, the SMS code will expire automatically.

Limits of Instant Money Transfer

Presently, through the IMT system a customer can send a maximum amount of Rs.10,000 per transaction in multiples of Rs.100 and the recipient can withdraw a maximum of Rs.25,000 a month. These limits are not fixed and can be changed by the bank depending on the growth of the IMT service and the rules applicable under the Reserve Bank of India (RBI).

How to Transfer Money Between Bank Accounts Instantly

Follow the steps mentioned below to transfer money from one bank account to another bank account: 

Step 1: Open your bank’s website 

Step 2: Log in to your credit card account 

Step 3: Select the transfer option 

Step 4: Enter the amount you want to transfer 

Step 5: Enter the required details mentioned in the form 

Step 6: Follow the prompts to complete transactions.