New Delhi | Jagran Business Desk: In order to boost digital payments across the country, the Reserve Bank of India (RBI) on Friday enhanced the transaction limit using Immediate Payment Service (IMPS) of banks to Rs 5 lakh from the previous limit of Rs 2 lakh. Now bank customers can transfer Rs 5 lakh for making any immediate money transfer on a day.
The decision came after repeated demands by the bank consumers to increase the limit as IMPS offers the convenience of banking transfers immediately all throughout the year and has become an important tool even among businesses for money transfers.
What is IMPS and why it is important in digital transactions?
IMPS of National Payments Corporation of India (NPCI) is an important payment system providing 24x7 instant domestic funds transfer facility and is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS.
The per-transaction limit in IMPS, effective from January 2014, has been increased to Rs 5 lakh from Rs 2 lakh for channels other than SMS and IVRS. The per-transaction limit for SMS and IVRS channels is Rs 5,000. 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.
The RBI said that this will lead to a further increase in digital payments and will provide an additional facility to customers for making digital payments beyond Rs 2 lakh. Necessary instructions to banks by RBI will be issued separately.
Apart from this, the RBI has also introduced another cohort in its regulatory Sandbox. Reserve Bank's Regulatory Sandbox (RS) has so far introduced three cohorts.
Six entities have successfully exited the First Cohort on 'Retail Payments' while under the Second Cohort on 'Cross Border Payments', eight entities are undertaking tests. The application window for the Third Cohort of 'MSME Lending' is currently open.
(With Agencies Inputs)
Posted By: Talibuddin Khan