IMPS per transaction limit increased to ₹ 5 lakh from ₹ 2 lakh: RBI (Reserve Bank Of India)
While announcing the monetary policy, RBI Governor Shaktikanta Das said that the central bank has increased the per transaction limit of Immediate Payment Service (IMPS) system to ₹ 5 lakh from ₹ 2 lakh earlier. The decision to increase the limit has been taken in view of the "importance of the IMPS system" and for "enhanced consumer convenience", Das added.
IMPS system was first introduced in 2010. It allows 24x7 real-time money transfer online
The Reserve Bank of India Governor Shaktikanta Das on Friday proposed to increase limit on Immediate Payment Service (IMPS) transaction to ₹ 5 lakh per transaction from the current limit of ₹ 2 lakh. "Immediate Payment Service (IMPS) offers instant domestic funds transfer facility 24x7 through various channels. In view of the importance of the IMPS system and for enhanced consumer convenience, it is proposed to increase the per transaction limit from ₹ 2 lakh to ₹ 5 lakh," Governor Das said at the end of the bi-monthly Monetary Policy Committee (MPC) review meeting that started on Wednesday.
Five things to know about proposed changes to IMPS limit:
- The Reserve Bank has proposed to increase the transaction limit for IMPS from ₹ 2 lakh to ₹ 5 lakh for customers accessing IMPS service via internet banking, mobile banking apps, bank branches and ATMs.
- The transaction limit to access IMPS services via SMS and IVRS is ₹ 5,000 per transaction, the Reserve Bank of India noted in a press release.
- Meanwhile, in order to ensure wider availability of payments acceptance (PA) through point of sale (PoS) terminals and quick response (QR) codes, the RBI has proposed to introduce a framework for leveraging geo-tagging technology to target areas with deficient PA infrastructure.
- Earlier this month, Reserve Bank of India's revised auto debit rules came into force. As per the new auto debit rules, all kinds of repetitive payments, made especially through credit and debit cards and valued at ₹ 5,000 and above, are preceded by a notification 24 hours in advance informing the customers about the scheduled payment.
- In December last year, Real Time Gross Settlement System (RTGS), used for large value transactions, was made available round-the-clock. The move was aimed at supporting the ongoing efforts aimed at global integration of the country's financial markets, facilitating the efforts to develop international financial centres and providing wider payment flexibility to domestic corporates and institutions.
