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IDBI Balance Check Number: SMS, Missed Call & More 2026

The IDBI Bank balance check number is one of the easiest options to get your account balance. Apart from this, IDBI Bank offers alternative ways to track your balance:

SMS banking
Missed call service
Net banking
Mobile banking

You can run an IDBI Bank account balance check instantly using any of these options above. Remember, you must register your mobile number to enjoy these services.

Read the online and offline IDBI Bank balance checking options and their steps.

Different Ways to Check IDBI Bank Balance

Missed Call Service: Give a missed call to 1800 843 1122 from your registered mobile number

SMS Banking: Send ‘BAL’ to 9820346920

Mobile Banking App: Log in to the IDBI Bank GO Mobile+ app to view your balance

Net Banking: Access your account through IDBI’s internet banking portal

ATM: Visit any ATM and check your balance using your debit card

Customer Care: Call IDBI Bank customer care and follow the instructions

Branch Visit: Walk into your nearest IDBI Bank branch

Here are a few ways described in detail with steps to check your IDBI Bank balance:

IDBI Bank Account Balance Check via Toll-Free Number

All IDBI Bank customers can make a balance enquiry by calling these toll-free numbers from their registered mobile number.

1800-209-4324

1800-22-1070

Once your call connects, follow this process:

Select your preferred language for the enquiry process

Follow the IVR instructions

Provide the required details for authentication

Get your account balance instantly

IDBI Balance Check Number via the Missed Call Service

Here is a step-by-step process to initiate an IDBI Bank account balance check through a missed call:

Step 1: Call 1800-843-1122

Step 2: Wait for the call to disconnect after two rings

Step 3: Wait for an SMS notification

Step 4: Check your account balance via SMS

IDBI Balance Enquiry Number Through Net Banking

To make an IDBI Bank balance enquiry online, follow these steps:

Step 1: Visit the IDBI Bank website

Step 2: Click on the ‘Login’ button

Step 3: Select ‘Personal’

Step 4: Enter your user ID and password

Step 5: Go to ‘Account Details’

Step 6: Select the ‘Account Balance’ option

Following these steps, you can view your account balance, among other account details.

Also Read: Download IDBI Bank Statement Online

Check IDBI Bank Balance Through Mobile Banking

This is another option to check your account balance instantly. All you have to do is follow this process:

Step 1: Download the IDBI Go Mobile+ App

Step 2: Open the App and tap on ‘Activate App’ button

Step 3: Enter customer ID and click on ‘Confirm’

Step 4: Enter OTP for verification

Step 5: Set the MPIN

Step 6: Log in with your customer ID and MPIN

Once you log in, you’ll receive a confirmation SMS, allowing you to check your account balance anytime.

IDBI Bank Balance Check Number Via UPI Apps

Follow these steps to check your account balance:

Step 1: Launch the UPI app

Step 2: Enter the passcode to log in

Step 3: Select the IDBI Bank account

Step 4: Click on the ‘Check Account Balance’

Step 5: Enter the UPI PIN

After entering the UPI PIN, your balance will be displayed on your screen instantly.

IDBI Bank Account Balance Check Through WhatsApp Banking

Check your balance by following these steps if you choose this option:

Step 1: Save 886-004-5678 in your contacts

Step 2: Open WhatsApp

Step 3: Open the IDBI Bank WhatsApp chat box

Step 4: Send ‘Hi’

Following these, you can easily register for WhatsApp banking. After this, you can interact with the chatbot to enjoy a host of banking facilities.

IDBI Balance Check Number Via SMS Services

To enjoy this facility, get your mobile number registered in the bank database by visiting your nearest branch. Then, follow this process:

Type ‘BAL <space> your customer ID <space> Account PIN number <space> [account number]’

Send this text to 9820346920 or 9821043718

Add the account number if you have more than one account at IDBI Bank.

IDBI Bank Account Balance Check by Updating Passbook

This is what you have to do to check your balance:

Visit your nearest IDBI Bank branch

Request the banking executive to update your passbook

IDBI Bank Balance Enquiry at ATM

Here are the steps to check your account balance using your debit card:

Step 1: Go to your nearest ATM

Step 2: Swipe the debit card

Step 3: Enter your ATM PIN

Step 4: Select the ‘Balance Enquiry’ or similar option

Step 5: View your outstanding account balance

You can choose from any of the above options; whichever is most convenient to you and stay updated on your account balance for seamless payments. If your balance runs low and you need additional funds, you can apply at Fibe for a Personal Loan.

You can get up to ₹5 lakhs with minimum documents. You can also enjoy affordable interest rates and quick approval, so you can get urgent funds for all your immediate financial requirements. Simply download the Fibe App or visit our website to apply for a loan!

FAQs on IDBI Bank Balance Check

How can I check my IDBI account balance by missed call?

Follow this process to get your balance:

Dial 1800-209-4324 or 1800-22-1070 and give a missed call. Get your IDBI savings account balance through SMS.

How do I get my IDBI Bank statement by SMS?

To get your account statement via SMS, you can opt for SMS or missed call banking services.

How do you check the IDBI Bank passbook online?

You can either download the IDBI Bank’s mPassbook or log into your net banking account on the IDBI Bank official website. Banking. 8 Jan 2024. Our top picks.

How to Check Bank Balance Online
HDFC Balance Check Number	Bank of Baroda Balance Check Number
Central Bank Balance Check Number	Canara Bank Balance Check Number
SBI Balance Check Number	Kotak Mahindra Bank Balance Check Number

Prepayment, Pre-Closure and Part Payment: Everything you need to know

Making a part payment of a personal loan or choosing any of the other prepayment options offers many benefits. It reduces your interest burden and makes you credit-free early. You can choose the right option to increase your savings by understanding how they differ.

Read on to learn the difference between these loan repayment methods.

What is the Part Payment of a Personal Loan?

Part-payment, as the name suggests, means repaying a part of the total loan amount when you have idle funds. This reduces the outstanding balance; hence, your EMIs and interest amount also decrease.

Consider the following example:

You get a loan of ₹10 lakhs for 5 years
The interest and EMI are calculated on ₹10 lakhs, which is the borrowed amount

Say you get surplus funds and plan to make a part payment of a personal loan of ₹5 lakhs after 2 years. Then, the interest and EMI will be calculated on the remaining ₹5 lakhs for 3 years. This helps decrease your interest outgo and minimise your borrowing costs for the remaining loan tenure.

What is the Prepayment of a Personal Loan?

Prepaying your loan is also called foreclosing. It refers to when you repay the entire loan before the loan tenure ends. Usually, financial companies allow borrowers to fully prepay the principal amount after the first year of repayment.

The prepayment of a loan can be beneficial as you save on interest. Consider the following scenario:

Loan amount: ₹2 lakhs
Interest rate: 15%
Tenure: 5 years

Here’s what you’ll need to pay:

EMI: ₹4,758
By the end of year 1: ₹29,039 towards the principal amount and ₹28,057 as interest

In the aforementioned hypothetical example, prepaying the entire loan will save you approximately ₹57,422 as interest.

What is the Pre-closure of a Personal Loan?

The option of pepaying the outstanding amount in a single instalment before the loan term ends is what this means. You can reduce your interest liability and close your loan account before the term, helping you save additional funds.

The financial institution will calculate the balance after considering the following parameters:

Total outstanding amount
Remaining loan term
Interest paid

Remember to collect the ‘No-dues’ certificate after the pre-closure of a personal loan as well as the original documents from the financial institution.

Consider the following situation:

You take a loan of ₹5 lakhs for 5 years
You pre-close the loan in a single instalment after 2 years
Then, you will save on interest payments for 3 years once you pre-close your loan

Difference Between Part Payment, Prepayment and Pre-closure

Check out this table to understand how these prepayment methods differ:

Parameter	Part Payment of a Loan	Prepayment of a Loan	Pre-closure of a Loan
Principle loan amount	The principal amount of your loan reduces	The principal amount of your loan reduces	Repayment of the entire outstanding loan amount
EMI	The EMI payment will decrease	The EMI payment will decrease	No EMIs since the entire loan amount is paid off
Interest rate	Remains the same	Reduces	The rate of interest remains the same, but you do not need to pay any interest since the entire loan amount is paid off

What to Consider Before Prepaying Your Loan?

Before making a loan prepayment, note the following criteria:

Current interest rates of the loan
Remaining tenure of the loan
Future financial goals and fund requirements
Your finances and repayment capacity
Terms and conditions of the lender, such as prepayment fees

By understanding these practices of prepaying loans, you can service your debt easily and manage your finances effectively. Try to plan for prepayment right when you are applying for a personal loan.

With Fibe’s Instant Cash Loan, you can get up to ₹5 lakhs at affordable rates and zero pre-closure charges. Download the Personal Loan App or log in to our website today to get the required funds with ease!

FAQs on Part Payment Vs Prepayment Vs Pre-Closure

How are prepayment and pre-closure different?

Here’s how these financial terms differ:

Prepayment means repaying a part or the full loan before the end of a loan tenure
Pre-closure means repaying the full loan amount in a single instalment before the end of the loan tenure

Is foreclosing and pre-closing a personal loan the same thing?

Yes, these terms can be used interchangeably since, in both cases, you repay the borrowed amount as a lump sum and close your loan account early. This helps you save on interest charges. However, you should only proceed after factoring in the fees levied by the financial institution.

How is partial prepayment and full prepayment different?

Here’s how:

Partial payment means repaying only a part of a loan amount before the tenure ends
Full prepayment means repaying the total loan amount in a lump sum before the end of the tenure

Is pre-closure of a loan good or bad?

It can be beneficial for you to pre-close a loan since it:

Helps decrease your interest costs
Makes you debt-free earlier

Remember, you must consider this option only when you have surplus funds and do not deplete all your emergency funds.

Union Bank of India Balance Enquiry Number

Keeping tabs on your Union Bank account balance is simpler than you think. Whether you prefer a quick missed call, an SMS or checking online, there are multiple ways to get your balance in seconds. You don’t even need to visit a branch. Just make sure your mobile number is registered with the bank and you’re good to go.

Read on to learn more about these options.

Different Modes Available to Check Union Bank Account

Here’s a snapshot of all the methods available before we get into the details:

Method	How It Works
Missed Call	Dial 09223008586 from your registered number and get your balance via SMS
SMS Banking	Send a text with the right code to 09223008486 and receive balance details instantly
ATM	Insert your debit card, enter your PIN and select Balance Check or Mini Statement
WhatsApp Banking	Send ‘Hi’ to 9666606060 on WhatsApp and follow the prompts for balance enquiry
Net Banking	Log in to the Union Bank portal and click on Balance Enquiry
Passbook	Visit your nearest branch and get your passbook updated by an executive

6 Ways to Check the Union Bank Account Balance

Checking your Union Bank balance is a quick and pretty simple process. Here’s a step-by-step breakdown of every method so you can pick what works best for you:

Check Union Bank Balance Through a Missed Call

The easiest way – no typing, no login, just a quick call.

Step 1: Dial 09223008586 from your registered mobile number
Step 2: Let it ring once and disconnect
Step 3: You’ll receive an SMS with your latest account balance shortly

Please note: An SMS charge of ₹2.50 + GST applies for domestic SMS and ₹1.20 + GST for international SMS.

Union Bank of India Balance Enquiry Via SMS

Prefer texting? Here’s how to check your balance via SMS.

For primary account balance:
- Step 1: Open your SMS app
- Step 2: Type UBAL and send it to 09223008486
- Step 3: You’ll receive your balance details via SMS
For other account balance:
- Step 1: Type UBAL<space>Account Number
- Step 2: Send it to 09223008486
For mini statement:
- Step 1: Type UMNS<space>Account Number
- Step 2: Send it to 09223008486
- Step 3: Your last few transactions will be sent to you via SMS

Please note: An SMS charge of ₹2.50 + GST applies for domestic SMS and ₹1.20 + GST for international SMS.

Also Read: How to Get Your Bank Account Statement

Check Union Bank Balance at the ATM

Have your debit card handy? Here’s how to use the ATM for a quick balance check.

Step 1: Go to your nearest Union Bank ATM
Step 2: Insert your debit card and enter your PIN
Step 3: Select the ‘Account Statement or Balance Check’ option
Step 4: Your balance and recent transactions will appear on screen

To find your nearest Union Bank ATM:

Type UATM<space>Pin Code<space>Location/City
Send it to 09223008486

Also Read: Union Bank of India Bank Statement

Union Bank of India Balance Check Via WhatsApp Banking

Union Bank offers balance enquiry through its WhatsApp service called Union Virtual Connect (UVConn).

Step 1: Save 9666606060 as a contact on your phone
Step 2: Open WhatsApp and send ‘Hi’ to this number
Step 3: Complete the one-time registration process
Step 4: Send ‘Hi’ again once registered
Step 5: Select the number corresponding to ‘Balance Inquiry’ from the menu

Your balance will be shared right there in the chat.

Union Bank of India Balance Enquiry Using Net Banking

For those who prefer checking online, the net banking portal makes it simple.

Step 1: Visit the official Union Bank of India website
Step 2: Click on ‘Internet Banking’
Step 3: Enter your User ID and password to log in
Step 4: Click on the ‘Balance Enquiry’ option
Step 5: Your current account balance will be displayed on screen

Also Read: How to Check Bank Balance Online?

Union Bank Account Balance Using a Passbook

Prefer the old-school way? Your passbook works just fine.

Step 1: Carry your passbook and visit your nearest Union Bank branch
Step 2: Request the bank executive to update your passbook
Step 3: Once updated, you can see your current balance and all recent transactions

Also Read: How to Download Bank Account Statement as a PDF?

[Source: Balance Enquiry – Union Bank]
[Source: Balance Enquiry – Union Bank]

Checking your bank account balance is essential to track your spending and cut down on unnecessary expenses. It helps you know whether you can make a purchase or need additional funds for that.

To get excess funds, you can opt for an Instant Cash Loan of up to ₹10 lakhs from Fibe. You can enjoy quick sanctions with a simple application process and minimal paperwork. Download the Fibe Personal Loan App or visit our website to get your journey started.

FAQs on Union Bank of India Balance Check

What is the missed call number to get the Union Bank account mini statement?

The UBI balance check number for the missed call facility to get your account balance is 09223008586.

How can I check my Union Bank balance online?

You can check it online through the Vyom- Union Bank of India application or the net banking portal. Log in to your account using the User ID and password. Click on the ‘Account Statements’ option.

How can I check my Union Bank of India balance by missed call?

All you have to do is dial this number, 09223008586, which is the Union Bank balance check number.

How to check the Union Bank passbook online?

You can check the passbook online through the Vyom- Union Bank of India application or the net banking portal.

How do I check my Union Bank balance via SMS?

To check the balance of your primary Union Bank account, send ‘UBAL’ to 09223008486.

How do I register my mobile number with the Union Bank of India?

To register your mobile number with the bank, you will have to fill in a form at your home branch.

What is the customer care number for Union Bank balance inquiries?

You can check your UBI account balance by giving a missed call. The balance check number of Union Bank is 09223008586.

What is the cost of using the Union Bank of India missed call service?

You will have to pay an SMS charge of ₹2.50 + GST for domestic SMS and ₹1.20 + GST for international SMS. Banking. 8 Jan 2024. Our top picks.

EMI Full Form: What is EMI, Meaning & How It Works?

EMI stands for Equated Monthly Instalment, which is the fixed money amount borrowers pay to repay a loan over a chosen repayment tenure. An EMI includes both the principal amount and the interest charged by the lender.

EMIs are commonly used for:

Personal loans

Home loans

Car loans

Education loans

Consumer durable financing

The EMI amount depends on factors such as:

Loan amount

Interest rate

Repayment tenure

Understanding how EMI works can help you:

Plan your monthly budget better

Compare different loan options

Choose a suitable repayment tenure

Manage repayments efficiently

In this guide, we’ll explain the meaning of EMI, how it works, the different types of EMI structures, EMI calculation methods, factors affecting your EMI and the advantages of paying through EMIs.

EMI Full Form: What Does EMI Stand for?

EMI stands for Equated Monthly Instalment. It is one of the most common and convenient methods used to repay loans in India.

While there are other repayment methods such as balloon payments and interest-only repayment structures, EMIs are preferred because they make repayment predictable and manageable.

With EMIs, borrowers pay a fixed amount every month. This amount is calculated based on:

The principal loan amount

The applicable interest rate

The selected repayment tenure

Since the EMI amount remains fixed, borrowers can plan their monthly expenses more effectively.

In banking, EMI meaning refers to a structured repayment mechanism where borrowers repay both the borrowed amount and the interest through equal monthly instalments over a predefined tenure.

Each EMI consists of 2 components:

Principal Amount

Interest Amount

During the initial months of repayment, a larger portion of the EMI goes towards interest. Over time, the principal component gradually increases while the interest component reduces.

Types of EMI

There are 2 primary types of EMI structures offered by banks and financial institutions in India:

1. EMI in Advance

Under this structure, the EMI is paid at the beginning of the billing cycle or loan tenure period. This means the borrower starts repaying immediately after the loan is disbursed. Since payments begin early, the interest burden may be slightly lower compared to EMI in arrears.

Commonly Used For:

Vehicle loans

Consumer durable loans

Leasing arrangements

2. EMI in Arrears

This is the most commonly used EMI structure in India.

In this method, the EMI is paid at the end of the billing cycle, usually after one month from the loan disbursement date.

Interest is calculated on the outstanding loan amount during the repayment period.

Commonly Used For:

Personal loans

Home loans

Education loans

Business loans

How Does EMI Work?

When you take a loan, the lender adds interest to the borrowed amount based on the applicable interest rate and repayment duration. The total repayment amount is then divided into equal monthly instalments.

Here’s what your repayment may look like if you take a loan of ₹1,00,000:

Particulars	Details
Loan Amount	₹1,00,000
Interest Rate	14%
Tenure	12 months
Total Interest Applied	₹7,748
Total Repayment Amount	₹1,07,748
EMI for 12 Months	₹8,979

Keep the following in mind:

The EMI amount usually stays fixed throughout the loan tenure

As you pay each instalment, your outstanding balance reduces

After the final EMI payment, the lender closes the loan account

Always collect a No Objection Certificate (NOC) after repayment

Check your credit report to ensure the loan account is marked as closed

A properly closed loan can also improve your credit score over time.

EMI Calculation: Formula & Methods

Lenders generally use 2 methods to calculate EMI amounts.

1. Flat Rate (Fixed) Method

Under this method, interest is calculated on the entire principal amount throughout the loan tenure.

The total principal and total interest are added together and divided equally across the repayment tenure.

Since the interest remains fixed, both the principal and interest portions of the EMI remain constant throughout the loan period.

Formula: EMI = (P X R X N) + P / N X 12

Where:

P = Principal loan amount

R = Rate of interest

N = Loan tenure

Worked Example

Suppose you borrow ₹2,00,000 at an annual interest rate of 12% for 2 years.

Principal = ₹2,00,000

Interest = ₹48,000

Total repayment = ₹2,48,000

Monthly EMI: ₹2,48,000/24 = ₹10,333

So, your EMI would be approximately ₹10,333 per month.

2. Reducing Balance Method (Most Common in India)

This is the most widely used EMI calculation method in India.

Under this method, interest is calculated only on the outstanding loan amount after every EMI payment.

As the outstanding principal reduces over time:

The interest component decreases

The principal repayment component increases

However, the total EMI amount remains fixed.

Formula: EMI = P X R X (1+R)^N / [(1+R)^N -1]

Where:

P = Principal amount

R = Monthly interest rate

N = Loan tenure in months

This method is considered more borrower-friendly because interest is charged only on the remaining balance.

Key Factors That Affect Your EMI

Several factors determine your monthly EMI amount.

Principal Amount

This is the total amount you borrow from the lender.

Higher loan amount = Higher EMI

Lower loan amount = Lower EMI

Interest Rate

The interest rate is the additional amount charged by the lender on the borrowed amount.

Higher interest rate = Higher EMI

Lower interest rate = Lower EMI

Loan Tenure

Loan tenure refers to the repayment duration.

Longer tenure = Lower EMI but higher total interest paid

Shorter tenure = Higher EMI but lower total interest paid

Credit Score

Your credit score reflects your repayment history and credit worthiness.

A high credit score may help you:

Get lower interest rates

Secure better loan offers

Reduce your EMI burden

A low credit score may lead to:

Higher interest rates

Lower loan eligibility

Higher EMIs

Monetary Policy (RBI Repo Rate)

The Reserve Bank of India (RBI) influences lending rates through changes in the repo rate.

When the RBI increases the repo rate:

Borrowing costs for lenders increase

Loan interest rates may rise

EMIs may become higher

When the RBI reduces the repo rate:

Loan interest rates may decrease

Borrowers may benefit from lower EMIs

Floating-rate loans are more directly impacted by repo rate changes compared to fixed-rate loans.

Advantages of EMI

EMIs offer several benefits for borrowers.

Easy Repayment Planning

Fixed monthly instalments help borrowers manage finances and maintain budget discipline.

Affordable Borrowing

Instead of paying a large amount upfront, borrowers can spread repayments over a comfortable tenure.

Flexible Loan Tenures

Most lenders allow borrowers to choose repayment tenures based on affordability and repayment capacity.

Improves Credit Score

Timely EMI payments help build a strong repayment history and improve your credit score.

Access to Higher-Value Purchases

EMIs make expensive purchases like homes, cars, smartphones and appliances more affordable.

Better Financial Liquidity

Borrowers can preserve savings and emergency funds instead of spending large amounts at once.

EMI vs Loan: Key Differences

Many borrowers confuse EMI with a loan, but they are different concepts.

Basis	EMI	Loan
Meaning	Monthly repayment amount	Borrowed financial amount
Purpose	Repayment method	Financial assistance
Includes	Principal + Interest	Principal amount
Duration	Paid monthly during tenure	Provided for a fixed tenure
Role	Helps repay the loan	Provides funds to borrower

Understanding EMI structures can help you choose a suitable repayment plan and avoid financial stress. Since interest rates significantly affect your EMI amount, it’s important to compare lenders and choose affordable loan options.

With Fibe’s Instant Cash Loan, you can get up to ₹10 lakhs at competitive interest rates with minimal documentation and a fully digital application process. You can apply online through the Fibe website or Personal Loan App and get quick access to funds.

FAQs on EMI

What is the formula used for calculating EMI on loans?

Under the flat-rate method: EMI = (P X R X N) + P / N X 12

Under the reducing balance method: EMI = P X R X (1+R)^N / [(1+R)^N -1]

Where:

P = Principal amount

R = Interest rate

N = Loan tenure

How is EMI deducted?

Most lenders automatically deduct the EMI amount from your registered bank account on the scheduled payment date through auto-debit or ECS mandates.

Is EMI a good or bad option?

EMIs are generally considered a convenient repayment option because they allow borrowers to repay loans gradually instead of paying a lump sum amount upfront.

What is the difference between an EMI and a loan?

A loan is the borrowed amount provided by a lender, while EMI is the monthly repayment amount used to repay that loan over time.

What is the meaning of the EMI levy date?

The EMI levy date is the specific date on which the lender deducts your monthly instalment from your bank account.

What is EMI in banking?

In banking, EMI (Equated Monthly Instalment) refers to the fixed monthly payment borrowers make to repay a loan over a specified tenure, including both principal and interest components.

Does making a part-prepayment reduce my EMI?

Yes, part-prepayment can reduce your EMI amount or shorten your loan tenure, depending on the lender’s policies and the repayment option you choose.

What happens if I miss an EMI payment?

Missing an EMI payment may:

Attract late payment charges

Negatively impact your credit score

Increase your debt burden

Lead to recovery actions by the lender

It’s advisable to pay EMIs on time to maintain a healthy credit profile.

What Is IMPS? – Full Form, Features, Steps, Charges and More

What is IMPS Transfer, Timings, and Limit

The full form of IMPS in banking is Immediate Payment Service. This fund transfer facility gives you real time updates on your online payments, including bills, fees, tickets, merchants and more. Knowing what is IMPS is important for transferring funds easily as you can use this facility for urgent needs.

However, there are limits, charges and timings that you should know when making hassle-free transfers. Now that you know the full form of IMPS in banking, read on to learn about more.

What is IMPS Transfer?

Following are some points to give you a complete overview of this facility:

It was launched by the National Payment Corporation of India (NPCI) on 22nd November 2010
It’s an electronic money transfer facility for making interbank fund transfers
You can opt for it on mobile, Internet, ATM and SMS banking channels
Only the banks licenced by the Reserve Bank of India (RBI) can provide this facility
With this feature, you can monitor payments in real time, even when banks are closed
It is among the most accessible options for secure and cost-effective banking
It enables you to move money at any time and any place of your choosing

Features of IMPS

Now that you know the meaning of IMPS, here are some of its features.

Secure: It follows encryption and authentication protocols to protect your funds
Flexible: This facility is available 24/7, even on bank and gazetted holidays
Accessible: Available through net banking, mobile banking and more
Versatile: Can initiate Peer-to-Peer (P2P) or Person-to-Merchant (P2M) payments easily
Instant: Funds get transferred instantly, in real time, so you do not have to wait
Easy: You can transfer funds effortlessly with the recipient’s banking or contact details

Types of IMPS Transfers

Here are different channels through which you can make an IMPS fund transfer:

Mobile Banking: Send money with the recipient’s mobile number linked to a bank account and a seven-digit MMID number
Net Banking: With beneficiary’s account number and IFSC code, you can easily send money online
Bank’s ATM: ATMs allow you to transfer money, given that you have the beneficiary’s mobile number and MMID
SMS: Send a text based on the bank’s prescribed format using the beneficiary’s MMID number to initiate a fund transfer

IMPS Transaction Limit and Timings

While IMPS is a quick and easy option, it has some restrictions regarding timing and amount. In terms of the IMPS transaction limit, the RBI allows up to ₹5 lakhs per day on transactions, except for SMS and IVRS. Similarly, the IMPS facility is available for all hours of the day, but a few banks have restricted timing for adding beneficiaries.

This helps banks avoid any fraudulent activities and take immediate action. So, ensure you check the timings when adding a beneficiary for easy payments.

IMPS Transaction Charges

Here are the charges for IMPS levied by some prominent banks in the country:

Bank	Charges
Axis Bank	₹2.5 – ₹10 per transaction
HDFC Bank	₹3.50 – ₹15 per transaction
ICICI Bank	₹2.5 – ₹15 per transaction
Kotak Mahindra Bank	₹2.5 – ₹15 per transaction
Punjab National Bank	₹5 – ₹12 per transaction
State Bank of India	Nil
YES Bank	₹5 – ₹15 per transaction

Disclaimer: Note that these charges for IMPS transfer are exclusive of GST. They also depend on your transaction amount and are also subject to change at the bank’s discretion. Furthermore, they are for outward transactions only. So, make sure to check with your bank before initiating the transfer.

How to Transfer Money Through IMPS

Here are the steps to follow for IMPS transfer:

Log in to your bank’s net or mobile banking platform
Click on the ‘Transfer’ option
Select ‘Add Beneficiary’ or ‘One Time Transfer’
Select ‘IMPS’ as the transfer method
Add required beneficiary details (MMID, account and mobile number, etc.)
Enter the amount and add a remark
Click on ‘Confirm’ to receive OTP on your registered mobile number
Enter the OTP to complete the transaction

Advantages of IMPS

Whether it’s a personal or business transaction, IMPS offers flexibility, speed, and reliability, making it an essential tool for modern banking needs. Here’s what makes IMPS stand out:

Speed and Security: IMPS processes transactions in real time and employs advanced security protocols to ensure safe and fast fund transfers
Convenient Access: IMPS is accessible via internet banking and mobile platforms, giving you the flexibility to manage transactions from anywhere
Always Available: This service operates 24/7, including weekends and public holidays, making it ideal for urgent money transfers
Effortless Beneficiary Setup: Adding beneficiaries is simple—just use the recipient’s mobile number and MMID for quick setup without the need for account details
Real Time Alerts: Both sender and receiver get immediate notifications, keeping you informed about the transaction status
Multi-Purpose Tool: IMPS isn’t just for fund transfers; you can also use it for merchant payments, mobile banking, and other financial activities

Points to Remember for IMPS

In addition to the timing, transfer limit and charges for IMPS, here are some other key points to note:

You can only make an IMPS transfer if you have registered for mobile banking services
You must have the Mobile Money Identifier (MMID) and MPIN
You can also make fund transfers with bank account number and IFSC

How to Register for IMPS in 2024

The registration process for IMPS is as follows:

Download your bank’s mobile banking app
Register for mobile banking
Note the MMID and MPIN number for your account

Using this, you can receive money into your account as well as send funds up to ₹5 lakhs.

With these steps, it is easy, fast and convenient to transfer money. This is why many lenders opt for this option to disburse funds to the borrower, allowing them to give instant loans, like those offered by Fibe.

With the Fibe Instant Cash Loan, you can get up to ₹5 lakhs in a few minutes as we have a quick approval and minimum documentation policy. You also enjoy pocket-friendly rates with no prepayment charges. Download our Personal Loan App or go to our website to apply now to get the required funds!

FAQs on IMPS Transfer

What is IMPS and how does it work?

It’s a real time fund transfer facility which stands for Immediate Payment Service. For this, you have to register for mobile banking. Additionally, you require the receiver’s mobile number and Mobile Money Identifier (MMID) or bank account details. Using these details, you can send or receive funds instantly.

What is an example of an immediate payment service?

Immediate Payment Service (IMPS), Real Time Gross Settlement (RTGS) and UPI are some examples of instant payment options available in India.

What is the IMPS transfer limit?

As per the RBI guidelines, the maximum daily limit for IMPS transfer is ₹5 lakhs except for SMS and IVRS, but it can vary depending on the banks.

What happens if IMPS is not credited?

If the transaction fails, wait a few minutes before initiating another transaction. If the amount isn’t credited to the beneficiary’s account but debited from your account, it will get reversed within two working days.

What is a Cheque Bounce? Causes and Prevention Tips

what is cheque bounce and cheque bounce charges

Under the Negotiable Instruments Act of 1881, cheque bounce is categorised as an offensive act. If your cheque bounces for any reason, you must face consequences such as monetary penalties, imprisonment or both. It can also impact your credibility and lead to other such negative effects.

Read on to learn about the meaning of cheque bounce, its reasons and the charges.

What is a Bounced Cheque?

A cheque bounce happens when a cheque payment fails due to reasons like insufficient funds, signature mismatch or an expired cheque. The meaning of cheque bounce is that the bank cannot process the payment, causing the cheque to be returned unpaid. A cheque is a written promise from the payer (the person issuing it) to the payee (the person receiving it) but if it doesn’t go through, it results in a cheque return or cheque bounce.

Here are some important points to know:

Your bank transfers the amount from your bank account to the payee’s account.
The Reserve Bank of India (RBI) released a new rule regarding this in August 2021. As per this rule, individuals who plan on using cheques need to maintain a minimum bank balance.
If you don’t maintain the required balance, the issued cheque will bounce. This rule applies to all private and national banks.

Why Do Cheques Bounce?

Check out the various reasons that can lead to a bounced cheque:

Insufficient Funds

A cheque can return or bounce if your account needs more funds. Since it is an offence according to the Negotiable Instrument Act of 1881, it attracts a penalty. Besides the monetary penalty, it can also lead to imprisonment for some years.

Expired Cheques

The date mentioned on a cheque states its validity. If you present a cheque to a bank for payment after its expiration date, the cheque will be returned.

Damaged Cheques

Another reason for cheque return is damaged or disfigured cheques. The financial institution may return your cheque if it is torn or folded or if the written details are not visible. To avoid these circumstances, try not to fold the cheque and keep it safe from damage.

Payer Stops Payment

The payer can request the financial institution to stop payment on the cheque. The bank will return the cheque in such a case.

Mismatch of Details

A financial institution can also return a cheque if the information, like the account number or the signature, doesn’t match their records. It creates concerns about the authenticity of the cheque, and therefore, the bank will return it.

Check Bounce Penalty

Here are the consequences of a cheque bounce:

The payee can take legal action against you if you fail to make the payment within 30 days of the official notification
A bounced cheque can lead to monetary penalties as well as imprisonment in some cases

What are the Charges for a Bounced Cheque?

Here are the cheque bounce charges levied by top financial institutions:

Bank	Charges
Axis Bank	Cheques deposited for local clearing at the home branch: ₹500
Bank of Baroda	Inward Return: Up to ₹1 lakh: ₹150Above ₹1 lakh to less than ₹1 crore: ₹250More than ₹1 crore: ₹500 Outward Return:Up to ₹1 lakh: ₹250Above ₹1 lakh to less than ₹1 crore: ₹500More than ₹1 crore: ₹750 Technical Reason: NIL
HDFC Bank	Insufficient Funds:1st- ₹450 for regular citizens and ₹400 for senior citizens2nd- ₹500 for regular citizens and ₹450 for senior citizens3rd onwards- ₹550 for regular citizens and ₹500 for senior citizens Funds Transfer Cheque Return:₹350 for regular citizens and ₹315 for senior citizens Technical Reason: ₹50 for regular citizens and ₹45 for senior citizens
SBI	Cheques returned unpaid by others (outstation/ local):Up to ₹1 lakh: ₹150 + GST Above ₹1 lakh: ₹250 + GST Cheques drawn to SBI returned due to inadequate funds: For PB & TBU customers: ₹500 + GST (irrespective of the amount)For SME Customers: ₹500 + GST (irrespective of the amount) for the first 3 cheque returns and ₹1,000 + GST from 4th cheque return onwards Cheque drawn to SBI was returned due to technical reasons: ₹150 + GST (No charges if the customer isn’t at fault)
ICICI Bank	Outward Return:₹200 (financial reasons) Inward Return:₹500 (financial reasons)₹50 (non-financial reasons except verification of signatures)

Note that the above charges are subject to change at the bank’s discretion.

Now that you know the meaning of cheque bounce and the reasons for it, take proactive steps to avoid it. This helps avoid any unnecessary financial liabilities and other severe consequences. In case your cheque bounces and you require funds to bridge your monetary gaps, get an Instant Personal Loan from Fibe.

You can get a loan of up to ₹5 lakhs instantly at affordable interest rates with easy-to-meet eligibility criteria and minimal documentation. To get your hands on the funds with ease, download the Personal Loan App or log in to our website!

FAQs on Cheque Bounce

How can I avoid cheque bounce charges?

Here’s how you can steer clear of these charges:

Ensure that you have adequate funds in your bank account and keep an eye on the account balance regularly.
Make sure that your cheque is not damaged or torn and all the details match as per the bank’s records.
Request help from the bank if you’re unsure about your registered signature to prevent errors.
Double-check that the numerical and word formats of the amount on the cheque match.
Ensure that you’ve written the accurate date on the cheque and you have funds in your account on that date.

When is the payee charged for a bounced cheque?

The payee also needs to pay cheque bounce charges in case of:

Insufficient funds
Signature mismatch
Other technical reasons

Note that this may vary depending on the bank.

Can I get bail in a cheque bounce case?

Yes, you can get bail in a cheque bounce case.

What if my cheque bounces due to insufficient balance?

Here’s what happens in such cases:

You may face legal proceedings if your cheque returns due to insufficient funds.
The payee may allow you to re-issue a cheque within 3 months.
In case of a cheque dishonour, you may face imprisonment.
The bank may also apply a monetary penalty for the cheque bounce.

Who pays cheque bounce charges?

The person who issues the cheque is responsible for paying the penalty charges for a cheque bounce. In some cases, both the parties need to pay the charges.

How to Block or Unblock Your ATM Card: 5 Methods (Online & Offline)

You can block your ATM card instantly via customer care, net banking, the mobile app, SMS or a branch visit and unblock it the same way, usually within minutes to 24 hours. Once you are confident your card is secure, you can easily unblock it to regain full access to your funds. A block can be temporary (reversible by you) or permanent/hotlisted (the card is cancelled and you’ll need a replacement).

This guide covers when to block your card, exact steps to block and unblock it, bank-wise processes for SBI, HDFC, ICICI and Axis and habits that lower your risk in the first place.

When Should You Block Your ATM Card?

Consider blocking your card if:

You notice suspicious or unrecognised transactions
Your card is lost, misplaced or stolen
You suspect skimming at an ATM or POS terminal
You’ve shared card details on a phishing link or fake call
You want to pause use for a while, for extra safety

If you’re only unsure, say, the card might just be at home — a temporary block is the safer first step, since it’s reversible the moment you find it.

Temporary Block vs Permanent Hotlisting: What’s the Difference?

Feature	Temporary Block	Permanent Block (Hotlisting)
Best for	Misplaced card, short-term suspicion	Confirmed theft, loss or fraud
Reversible?	Yes, anytime via app/net banking	No — card is cancelled
New card needed?	No	Yes, a replacement is issued
Speed	Instant	Instant, but card is unusable forever

Rule of thumb: If your card details may have been exposed to someone else, hotlist it permanently instead of just placing a temporary block.

How to Block Your ATM Card: 5 Ways Online & Offline

Customer Care: Call the helpline, verify your identity and the bank blocks the card immediately, confirming by SMS or email.
At the Branch: Visit the nearest branch and ask a representative to block the card after identity verification — useful if you’ve lost your registered mobile number too.
Net Banking: Log in → find the ‘block card’ option → select the card → give a reason → confirm.
Mobile Banking App: Once registered, most apps show a block/manage-card option right on the dashboard.
SMS Banking: Send an SMS in your bank’s fixed format (e.g., BLOCK <last 4 digits>) to its designated number and get a confirmation once done.

Automatic blocks can also happen if you enter the wrong PIN more than three times, a purchase would take your balance to zero, your card has expired or the bank detects a security breach.

How to Block ATM Card: Bank-Wise Steps (SBI, HDFC, ICICI, Axis & More)

Bank	Customer Care	SMS Format	App/Net Banking
SBI	1800 1234 / 1800 2100	BLOCK DC <last 4 digits> to 7308080808	YONO App → Cards → Block
HDFC Bank	1800 202 6161	BLOCK <last 4 digits> to registered SMS number	NetBanking → Cards → Block/Replace
ICICI Bank	1860 120 7777	HOT <last 4 digits> to 5676766 or WhatsApp 8640086400	iMobile App → Manage Card
Axis Bank	1860 419 5555	UBLOCK <last 4 digits> to bank’s SMS number	Axis Mobile → Block & Replace

Numbers and SMS keywords change occasionally, verify the current one on your bank’s official website or the back of your card.

How to Unblock Your ATM Card: 4 Methods

Wondering how to unblock a debit card online? Here are your options:

Automatic Unblock: A card blocked for three wrong PIN attempts typically unblocks itself after 24 hours.
Bank Branch: If net or mobile banking isn’t working for you, visit the branch with ID proof and card details for manual unblocking.
Online Mode: Log in to net banking or the app, go to ‘unblock,’ and select your card — usually the fastest self-service route.
SMS: Some banks unblock via a specified SMS keyword from your registered number, with confirmation once complete.

For an ATM card unblock application at a branch, keep your registered mobile number, ID proof and card/account details ready to speed up verification.

Why Was Your ATM Card Blocked?

If you didn’t request the block, check whether you recently entered the wrong PIN multiple times, your card has expired, the bank flagged a suspicious transaction or there was a wider security incident on the bank’s network. Your app usually shows the exact reason under ‘manage cards,’ which is faster than calling customer care.

Safety Tips to Follow When Using Your Debit Card

Use a secure, private network for online transactions
Set up two-factor authentication
Never write down or share your ATM PIN
Change your PIN periodically
Turn on SMS/app transaction alerts
Don’t hand your card to a cashier out of sight

Whether it’s a debit or credit card, security should be a top priority. The Fibe Axis Bank Credit Card stands out here — it’s a numberless card, so the card number isn’t printed on the physical card, meaningfully cutting the risk of skimming and shoulder-surfing at ATMs or checkout counters.
It’s a Rupay UPI-enabled, offers up to 3% cashback with zero annual or joining fees, plus complimentary lounge access and dining discounts. Download the Fibe App or visit the website to apply.

FAQs on Blocking and Unblocking ATM Cards

1.How can I block my ATM card by SMS?

Send a text in your bank’s required format to its designated number from your registered mobile number; the exact format is on your bank’s website.

2.Can we unblock ATM cards online?

Yes, if the block was temporary via net banking or the mobile app. Hotlisted cards can’t be unblocked.

3.How can I block my ATM card immediately?

Call customer care or log in to net banking; both block the card almost instantly.

4.How do I withdraw money from a blocked account?

If it’s your card that’s blocked, wait up to 24 hours for auto-unblock or unblock it manually online before withdrawing.

5.Why was my ATM card blocked and how can I find out the reason?

Check your net or mobile banking app or call customer care for specifics.

6.Will I receive a notification if my ATM card is blocked?

Yes, you’ll get a confirmation SMS or email once the block is processed.

7.What is the difference between blocking and hotlisting an ATM card?

Blocking (temporary) is reversible by you. Hotlisting is a permanent cancellation requiring a new card.

8.How do I unblock my ATM card if I forgot my net banking password?

Reset it via ‘forgot password’ using your registered mobile number and email or visit a branch with ID proof.

9.Can I block my ATM card if I am abroad?

Yes, customer care helplines and the mobile app work from anywhere with network access.

10.Will blocking my ATM card affect my bank account?

No. Only the card is disabled; your balance and other services stay unaffected

What is an Issuer Identification Number and How Does It Work?

Wondering what an Issuer Identification Number or IIN is? Well, it’s an important component of payment cards, like credit and debit cards. The number helps identify the card issuer and your card’s processing network. Apart from this, you get to enjoy several other benefits, making this an important part of your payment card.

Here’s a brief snapshot of IIN, its importance and how it works.

What do you mean by an issuer Identification Number (IIN)?

An Issuer Identification Number is the first 6 to 8 digits you can find in a payment card. It is generally placed before your Primary Account Number (PAN) on the card. The IIN indicates the card network and the industry it’s associated with.

With the help of this number, merchant banks manage transactions effectively. It also helps reduce the chances of error and financial fraud. The alternate name of IIN is Bank Identification Number or BIN.

Here is an example for better clarity regarding the IIN. Suppose your credit card number is 5526 7184 3412 3720. If the credit card issuer uses a 6-digit IIN, then the IIN for your card will be 552 671. If your credit card issuer uses an 8-digit IIN, then the IIN for your card will be 5526 7184.

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How does an issuer Identification Number (IIN) work?

To understand how an IIN works, you need to break it into two parts:

Major Industry Identifier (MII)
BIN

The first digit of the IIN is the MII, which indicates the network with which the card is associated. Other digits make up the BIN, which helps identify the credit card issuer.

Here is a table of MII that you can use to understand which network your card is a part of:

First Digit of IIN	Associated Industry/Credit Card Company
1	Airlines
2	Mastercard
3	Entertainment and travel
4	Visa
5	Mastercard
6	Discover
7 to 9	Healthcare, petroleum and other such industries

Why is the issuer Identification Number (IIN) important?

The IIN number of a payment card holds high significance because of several reasons, some of these include:

Streamlines Processing of Payments

The IIN allows the identification of the processing network used for a transaction made by a card. This, in turn, ensures that your payments are processed efficiently and smoothly.

Prevents Fraudulent Activities

The number helps make your transactions more secure as it helps verify and authenticate the payment card’s status. This layer of security also helps prevent unauthorised transactions and other fraud.

Helps in Better Management of Payment Cards

The IIN number has also improved the management of payment cards and the transactions executed using these cards. It aids in quicker identification of the card issuer, allowing reduced errors and processing time for transactions.

Boosts Confidence in Payments

The verification and authentication that IIN helps ensure that only authorised cardholders who have adequate funds can carry out transactions. With this optimum verification, merchants and customers consider these transactions reliable and secure. Thus, it helps boost the confidence of all the parties associated with the transactions.

Now that you know the IIN full form and what is an IIN number in a bank or otherwise issued card, you have a clearer understanding of how payment cards work. However, despite the security that these features add, the numbers on your credit card still make it vulnerable to fraud. Thankfully, you can now get a numberless card and ensure that your finances are secure.

The Fibe Axis Bank Credit Card is India’s first numberless credit card, enabling you to make secure transactions easily. That’s not all. With this credit card, you can get discounts of up to 3% on every transaction, 15% on dining with partner restaurants and much more! You can also link with UPI apps to make seamless payments. Download the Fibe App or log in to our website to apply.

FAQs on Issuer Identification Number

Why is an Issuer Identification Number important?

The IIN number helps know the card company and the industry a payment card is associated with. The number also helps streamline payments, prevent fraud, support identification and more.

What is the difference between IIN and BIN?

There is no difference between the Issuer Identification Number (IIN) and the Bank Identification Number (BIN).

What is the Bank Identification Number or BIN?

A Bank Identification Number, or BIN, is the initial digits on a credit card or any other payment card that helps identify the issuing institution and industry.

6 Reasons Why Your Credit Card Application Declined & how to improve

If your credit card application is declined, it isn’t the end of the world. Nowadays, applying for a credit card is easier, thanks to fintech advancements that allow you to get quick approval from the comfort of your home. Despite the easy access, issuers have specific eligibility criteria that you must fulfil.

All financial institutions issuing credit cards can reject your application for eligibility-related reasons. Knowing them well in advance can help avoid unnecessary rejections on your application.

Read on to know some common reasons why issuers may deny your credit card application, what to do when your credit card application is declined and more.

Reasons why your application may get rejected

Here are some of the most common reasons why issuers may reject your application.

Poor Credit Score

Your credit score is a three-digit numerical summary of your creditworthiness. Lenders consider this a vital criterion before approving any form of credit. The score ranges between 300 and 900, with a score above 750 being optimal.

While some financial institutions may approve if you have a score of 700 or above, a value less than 650 may result in the rejection of credit card or loan approval. So, check and improve your credit score before applying for a credit card or loan to avoid rejection.

No Credit History

Card issuers review your credit history to assess your ability to handle credit and your repayment strategies. This allows them to evaluate the risk of providing the credit card. Thus, being new to credit can pose a hurdle in getting a credit card.

In such cases, some issuers allow you to apply for a secured credit card. This is a type of credit card for which you need to pledge collateral, such as a fixed deposit. Using this card, you can build a credible history before applying for a regular credit card.

Insufficient Income

Credit card providers check your income proof to ensure that you have sufficient repayment capacity. Hence, issuers insist you provide a salary slip, income tax return or Form 16 document when applying for a credit card. If you meet the required income eligibility parameter, you have a higher chance of getting the credit card on favourable terms.

However, in certain situations, despite having a decent income, your application may still get rejected due to the debt-to-income (DTI) ratio. A high debt-to-income ratio indicates that most of your salary goes into paying bills and dues, so you cannot afford another EMI. Thus, it’s essential that you maintain a DTI ratio of less than 30%.

Unstable Employment

Most credit card issuers prefer applicants with stable job profiles and employment history. If you frequently change your jobs every 6 months, you may find it difficult to get approval for a credit card.

Error in Application Details

Any minor error in your application can lead to rejection, so you must fill out your application accurately. Re-check your application before submitting it and provide complete information. If you have any doubts, you must contact the issuer immediately.

Multiple Applications

When applying for a credit card, ensure you don’t apply simultaneously with different issuers. Each time you apply, the issuer runs an inquiry into your credit history that can cause a dip in your credit score. Hence, to avoid your credit card application being declined, apply with one issuer at a time.

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What to do after your Credit Card application is declined?

Now that you have a solution to the query, ‘Why my credit card application declined,’ here are a few tips to improve your chances of approval.

Ask the issuer the reason for your credit card application getting declined
Review your credit report and score regularly
Pay your credit card bills on time and reduce your debt-to-income ratio
Re-check your application to spot errors and rectify them at the earliest

In conclusion, you must work on your creditworthiness before applying for a credit card. All credit card issuers set varying terms and conditions you need to match before getting approval. Hence, visiting their website and reading these terms carefully before applying is better.

If you plan to get a new credit card, consider the Fibe Axis Bank Credit Card. As India’s first numberless credit card, it allows you maximum security against identity theft and fraud. With zero annual and joining fees, this UPI-enabled credit card offers up to 3% cashback on all your transactions, along with other perks such as complimentary lounge access and much more. Download the Fibe App or apply on our website to get started!

FAQs on Credit Card Application Rejection

What happens if I get rejected for a credit card?

If your credit card application is declined, it does not affect your credit score. So, you can reapply once you understand the exact reason for rejection.

Can we apply for a credit card after rejection?

Yes, you can re-apply with the same or different issuer, but it’s best to wait before applying for a card immediately after rejection.

What is the percentage of credit card rejection?

Since your chances of approval or rejection depend on your eligibility and issuer’s terms, there is no fixed percentage for credit card rejections. Also, these criteria may vary from one issuer to another.

Hence, maintaining a spotless credit history and an optimal score is one of the various strategies you can adopt to avoid credit card rejections.

How do I get approval for a credit card?

You must fulfil the following conditions if you want to get approval for a credit card:

Meet the issuer’s eligibility criteria
Provide accurate and complete information on the form
Have a good credit score and history

Repo Rate & Reverse Repo: Meaning & Key Differences Explained

Reverse repo rate and repo rate set by the RBI are specific monetary policy tools. The policies that govern these rates help manage the country’s overall economy. Specific factors like inflation, currency rate changes and money flow influence these rates.

Read the information below to define repo rate and reverse repo rates and learn how they impact the economic situation within the country.

Current Repo Rates

At present, the repo rate in India is 6.50%. This remains unchanged after the RBI’s announcement on August 8, 2024. This updated rate came after the last change in February 2023, when it was 6.25%.

Reserve Bank of India Repo Rate

The revised repo rates, according to the Reserve Bank of India, are:

Repo Rate Today	6.50%
Reverse Repo Rate	3.35%
Bank Rate	6.75%
Marginal Standing Facility Rate	6.75%

Disclaimer: These rates are current as of December 2024. Since rates are updated regularly, make sure to check the latest rates.

What is the Repo Rate?

The abbreviation ‘repo’ stands for Repurchasing Option or Repurchasing Agreement. The Reserve Bank of India (RBI) fixes the repo rate for commercial banks to borrow funds against collateral.

To deal with volatile market situations or to maintain liquidity, commercial banks borrow funds from the RBI, according to this rate. According to the announcement in December 2023, the repo rate has remained unchanged from the previous rate of 6.50%.

Impact of Repo Rate Change on Borrowers

A change in the repo rate is directly reflected over the cost of borrowing. If the repo rate increases, your cost of borrowing also increases. Similarly, the cost of borrowing will decrease with a declining repo rate.

Why? When the repo rate increases, it becomes difficult or costs more for banks to get capital from RBI and so, banks increase the interest rates. Likewise, you get loans at affordable rates if the RBI lowers the repo rate.

Relationship Between Repo Rate and Inflation

This rate plays a crucial role in maintaining stability and keeping control over the economic flow of money. The RBI increases the repo rate to regulate cash flow and incline borrowing costs, specifically with the rise of inflation.

When the overall money supply within the economy declines, the lending activities by banks also reduce. This reduction can lead to less overall consumer spending, investment and demand. Thus, it controls price stability and inflation.

What is the Reverse Repo Rate?

To control the overall market supply of money the reverse repo rate is another useful tool. As the name states, it is the rate at which the RBI borrows money from banks within the country. Placing funds with RBI is a safe option that most commercial banks have.

Commercial banks can get more incentives for depositing funds with the Central Bank when the reverse repo rate by the RBI increases. Overall, this can lead to a decrease in the availability of loans as well as the money supply within the economy.

As per the latest announcements, the reverse repo rate in India is stable at 3.35%. It is important to understand that reverse repo rates are always lower than the repo rates.

Difference Between Reverse Repo Rate and Repo Rate

Check the following table to know the differences between repo and reverse repo rates in India:

Parameter	Repo Rate	Reverse Repo Rate
Lender and Borrower	The RBI offers money to commercial banks	The RBI borrows money from commercial banks
Operational Mechanism	Banks offer their securities as collateral to gain funds and buy them back	The RBI pledges its securities to deposit funds and get loans
Objective	To promote price stability and money deficiency	To control the availability of money
Impact of Rate Hike	A hike in repo rate discourages banks from borrowing; as the repo rate rises, the interest rate increases too	Banks prefer to deposit surplus funds with the RBI to earn interest, leading to a fall in the money supply
Impact of Decrease in Rate	Lower repo rates encourage lending with lower interest rates	Banks reduce deposits with the RBI and lend more to the public

As mentioned above, an upward repo rate can increase your loan’s interest. An increase in the reverse repo rate can also impact its availability. Such changes can impact your ability to receive desired loan amounts. To equip yourself to deal with financial needs during such times, it is best to create an emergency fund. You can also invest in liquid options, be it mutual funds or fixed deposits.

FAQs on Repo and Reverse Repo Rate

What is the current repo and interest rate?

As per the recent changes in December 2023, the repo rate in India is 6.50%. An increase in repo rate allows for an increase in interest rates on loans.

Who sets the reverse repo rate?

The Reserve Bank of India sets the reverse repo rate. It is a monetary policy instrument to control the money supply in the economy by the RBI.

What is a repo rate with an example?

The current repo rate is 6.50%. So, if a commercial bank borrows ₹1 lakh from the RBI, it will have to pay an interest of ₹6,500.

Is the repo rate good or bad?

While the repo rate may affect borrowing costs, it is an essential tool to control the money supply and promote price stability in the economy.

Is the reverse repo rate fixed?

The reverse repo rate is currently unchanged by the RBI, stable at 3.35%, whereas the repo rate is unchanged at 6.50%.