IMPS Per Transaction Limit Increased To ₹5 Lakh From ₹2 Lakh: RBI

Mumbai: While announcing the monetary policy, RBI Governor Shaktikanta Das said that the central bank has increased the per transaction limit of the Immediate Payment Service (IMPS) system to ₹5 lakh from ₹2 lakh earlier.

In view of the importance of IMPS, RBI Governor Shaktikanta Das during his Monetary Policy Committee (MPC) outcome address on Friday said that the Immediate Payment Service (IMPS) transaction limit will be increased, which will enable domestic 24*7 funding.

“Given the importance of IMPS system in the 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. This will further enhance digital payments and provide additional convenience for customers to make digital payments above Rs 2 lakh,” Governor Das said in a statement.

IMPS is a real-time payment service for inter-bank transfers which is available at all times including weekends and public holidays. It was launched by the National Payments Corporation of India (NPCI) on November 22, 2010, to facilitate real-time fund transfer. It is used by millions of people to transfer funds instantly to the beneficiary’s accounts through the internet or mobile banking.

This is the most preferred route for retail customers as the other two systems come with some limitations. NEFT, for example, transfers money with intervals and RTGS does not allow payments of less than Rs 2 lakh.

To promote digital payments, the central bank will also introduce a framework for offline retail digital payment solutions. Das said it will help remote areas with low internet connectivity and expand the reach of digital payments, thereby opening up new opportunities.

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