IMPS Money Transfer to Attract Charges from August 2025: Check New Rates by SBI, HDFC, PNB, and Canara Bank
The Immediate Payment Service (IMPS), a real-time money transfer system operated by the National Payments Corporation of India (NPCI), has long been a convenient and cost-effective way for Indians to send money instantly, 24/7, across banks. However, starting August 2025, several major banks, including State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB), and Canara Bank, have introduced or revised transaction charges for IMPS, marking a shift from the previously free or low-cost service. This blog explores the new IMPS charges, their implications for customers, and what you need to know to manage your transactions effectively.
What is IMPS?
IMPS is a digital payment service that enables instant interbank fund transfers through multiple channels, including mobile banking, internet banking, ATMs, and branches. With a per-transaction limit of ₹5 lakh (except via SMS or IVR), IMPS is popular for its speed, security, and accessibility, supported by a two-factor authentication system. Launched in 2010, it has grown to include 965 member banks and prepaid payment instruments (PPIs), making it a cornerstone of India’s digital payment ecosystem.
Why the Change in Charges?
As banks aim to recover the costs of maintaining instant digital payment systems, many have revised their IMPS fee structures. While small-value transactions remain free or low-cost in some cases, higher-value transfers now attract nominal charges. These revisions, effective from August 2025, reflect banks’ efforts to balance operational costs with customer convenience, especially as digital transactions surge. The changes have sparked discussions on platforms like X, with users expressing concerns about the additional costs of using their own money for transfers.
New IMPS Charges: Bank-by-Bank Breakdown
Below is a detailed look at the revised IMPS charges for SBI, HDFC Bank, PNB, and Canara Bank, effective from August 2025, based on available information.
State Bank of India (SBI)
- Effective Date: August 15, 2025
- Online Transactions:
- Up to ₹25,000: Free
- ₹25,001–₹1,00,000: ₹2 + GST
- ₹1,00,001–₹2,00,000: ₹6 + GST
- ₹2,00,001–₹5,00,000: ₹10 + GST
- Branch Transactions:
- Up to ₹1,000: Free
- ₹1,001–₹10,000: ₹3 + GST
- ₹10,001–₹25,000: ₹5 + GST
- ₹25,001–₹1,00,000: ₹8 + GST
- ₹1,00,001–₹2,00,000: ₹15 + GST
- ₹2,00,001–₹5,00,000: ₹20 + GST
- Exemptions: Salary package account holders (e.g., Defence Salary Package, Corporate Salary Package, State Government Salary Package) enjoy waived charges for online IMPS transactions across all variants.
- Note: SBI has not revised branch-based IMPS charges, which range from ₹2 + GST to ₹20 + GST, but online transactions above ₹25,000 now incur fees that were previously free.
HDFC Bank
- Effective Date: August 1, 2025
- Charges (applicable to both online and branch transactions):
- Up to ₹1,000: ₹2.50 + GST (₹2.25 + GST for senior citizens)
- ₹1,001–₹1,00,000: ₹5 + GST (₹4.50 + GST for senior citizens)
- Above ₹1,00,000: ₹15 + GST (₹13.50 + GST for senior citizens)
- Exemptions: Speciale Gold and Platinum account holders, as well as Imperia and Preferred customers (since March 15, 2021), enjoy free IMPS transactions.
- Note: HDFC Bank’s revised structure introduces charges even for small transactions up to ₹1,000, unlike some banks that offer free transfers in this slab. Senior citizens benefit from slightly lower rates.
Punjab National Bank (PNB)
- Charges:
- Up to ₹1,000: Free
- ₹1,001–₹1,00,000: ₹6 + GST (branch), ₹5 + GST (online)
- Above ₹1,00,000: ₹12 + GST (branch), ₹10 + GST (online)
- Note: PNB differentiates between branch and online transactions, with online transfers being slightly cheaper. The bank maintains free transfers for transactions up to ₹1,000, aligning with efforts to encourage small-value digital payments.
Canara Bank
- Charges:
- Up to ₹1,000: Free
- ₹1,001–₹25,000: Free
- ₹25,001–₹1,00,000: ₹5 + GST
- Above ₹1,00,000: ₹10 + GST
- Note: Canara Bank offers free IMPS transactions for amounts up to ₹25,000, making it one of the more cost-effective options for small to medium transfers. Charges for higher amounts align with industry standards.
Key Observations and Customer Impact
- Free Transactions for Small Amounts: Most banks, except HDFC, offer free IMPS transactions for amounts up to ₹1,000, and Canara Bank extends this to ₹25,000. This ensures small-value transfers remain affordable, encouraging digital payments for everyday needs.
- Online vs. Branch Charges: Online transactions generally attract lower fees than branch-based transfers, incentivizing digital banking. For example, PNB charges ₹5 + GST online versus ₹6 + GST at branches for transactions between ₹1,001 and ₹1,00,000.
- Exemptions for Specific Customers: SBI’s salary package account holders and HDFC’s premium account holders enjoy fee waivers, providing relief for certain customer segments. Senior citizens also benefit from discounted rates at HDFC Bank.
- Impact on High-Value Transfers: Higher-value transactions (above ₹1,00,000) now face charges ranging from ₹10–₹20 + GST, which could add up for frequent users or businesses relying on IMPS for large transfers.
- Public Sentiment: Posts on X reflect customer frustration, with some users arguing that banks are charging extra for using customers’ own money. Others highlight the convenience of IMPS but urge users to check bank-specific rates before transacting.
Tips for Managing IMPS Charges
To minimize the impact of these new charges, consider the following:
- Opt for Online Transfers: Use mobile or internet banking to benefit from lower or waived fees, as branch transactions are consistently more expensive.
- Leverage Exemptions: If you hold a salary package account with SBI or a premium account with HDFC, ensure you’re maximizing free IMPS transfers.
- Choose UPI for Small Transactions: For amounts up to ₹1,00,000, Unified Payments Interface (UPI) remains free and is a viable alternative to IMPS, though it lacks the same interbank reliability for higher amounts.
- Check Bank Policies: Before transferring, verify your bank’s fee structure, as charges vary across institutions. For example, Canara Bank’s free transfers up to ₹25,000 are more generous than SBI’s ₹25,000 threshold.
- Plan Transactions: Consolidate multiple small transfers into a single larger one to reduce cumulative fees, especially for amounts above ₹25,000.
Broader Context: Rising Banking Costs
The introduction of IMPS charges coincides with other banking fee hikes. For instance, posts on X highlight ICICI Bank’s increased minimum balance requirements and ATM charges, sparking debates about rising costs for digital services. These changes reflect banks’ efforts to offset operational expenses amid growing digital infrastructure demands. However, they also raise concerns about affordability, particularly for low-income customers who rely on instant payment systems like IMPS.
Conclusion
The revised IMPS charges introduced by SBI, HDFC Bank, PNB, and Canara Bank from August 2025 mark a shift toward cost recovery for instant digital transactions. While small-value transfers remain free or low-cost, higher-value transactions now attract nominal fees, with variations across online and branch channels. Customers can mitigate these costs by leveraging online banking, exemptions for premium accounts, or alternatives like UPI for smaller amounts. As India’s digital payment landscape evolves, staying informed about bank-specific charges is crucial for managing your finances effectively. Before making IMPS transactions, check your bank’s latest fee structure to avoid surprises and ensure cost-efficient transfers.
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