When announcing the monetary policy, RBI Governor Shaktikanta Das said the central bank has increased the limit per transaction in the Immediate Payment Service (IMPS) from ??2 lakh to ??5 lakh for channels other than SMS and IVRS (interactive voice response system).
“The move will drive an increase in digital payments and provide customers with an added ease to make digital payments beyond ??2 lakh, “RBI said in its statement on development and regulatory policies released Oct. 8.
The National Payments Corporation of India’s IMPS is an essential payment system that provides 24/7 instant domestic money transfer facility. It is also accessible through various channels such as online banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS.
IMPS has steadily gained ground as a payment service due to the ease with which it enables transactions.
According to RBI’s annual report, “In 2021, the number of IMPS transactions completed ??32 trillion to exceed NEFT transactions and were worth more ??29 trillion. “
Why has the limit been increased?
IMPS settlements are processed by the RTGS of member banks.
Adhil Shetty, Managing Director of BankBazaar.com, said: “Real-time gross settlement (RTGS) at banks is processed continuously throughout RTGS’s business hours, which has now been increased to 24 hours a day. 24. As a result, the settlement period for IMPS has also decreased. As settlement cycles have increased, the RBI has increased the maximum amount that can be transferred through all channels such as online banking, mobile banking apps, branch offices, ATMs, etc. ??5 lakh against the earlier limit of ??2 lakh. “
“With RTGS now operational 24 hours a day, there has been a corresponding increase in IMPS settlement cycles, thereby reducing credit and settlement risks,” the RBI statement said.
What does this mean to you?
Increasing the amount that can be transferred through IMPS will provide customers with an additional opportunity to make digital payments beyond ?? 2 lakh.
Shetty added: “The announcements – today’s as well as previous ones – viewed from a 30,000-foot perspective have implications for the transfer of money not only within the borders of the United States. India but also outside. This is all the more important as the idea of digital currencies is taking hold on a global scale and the regulator is ensuring that digital transfers of rupees are increasingly secure, accessible, compliant and traceable. As a result, customers will be able to move large quantities around the clock, securely, instantly, whether within the country or abroad. “
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