New Delhi, Oct 7: The Reserve Bank of India (RBI) on Friday said that the daily limit of Immediate Payment Service (IMPS) transactions will be increased to Rs 5 lakh from earlier Rs 2 lakh.
The announcement has been made by RBI Governor Shaktikanta Das on Friday while announcing the decisions made in the Monetary Policy Meeting.
It can be noted that Immediate Payment Service (IMPS) of National Payments Corporation of India (NPCI) is an important payment system providing 24×7 instant domestic funds transfer facility and is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS.
With RTGS now operational round the clock, there has been a corresponding increase in settlement cycles of IMPS, thereby reducing the credit and settlement risks.
“In view of the importance of the IMPS system in processing of domestic payment transactions, it is proposed to increase the per-transaction limit from Rs 2 lakh to Rs 5 lakh for channels other than SMS and IVRS,” RBI said in a statement.
This will lead to further increase in digital payments and will provide an additional facility to customers for making digital payments beyond Rs 2 lakh. Necessary instructions in this regard would be issued separately, it added.
RBI also decided to keep benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance even as the economy is showing signs of recovery after the second Covid-19 wave.
Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with RBI.
As per the information provided by RBI, the per-transaction limit in IMPS, effective from January 2014, is currently capped at Rs 2 lakh for channels other than SMS and IVRS. The per-transaction limit for SMS and IVRS channels is Rs 5000.
