The Reserve Bank of India has raised the limit of IMPS transactions to Rs 5 lakh from Rs 2 lakh. This step has been taken for the convenience of the consumers in the case of digital transfers. It had made the changes to the RTGS transfers, used for the transaction of higher value, 24*7.
Started in 2010, IMPS, is a 24*7 service for money transfer in real-time. It permits the transfer of funds immediately within banks across states, which is not only safe but economical too.
Points to Know About Changes in IMPS Limit:
Shaktikanta Das, RBI Governor on Friday increased the daily limit of immediate payment service (IMPS) for the digital payment mode and it will make it convenient for consumers to transfer a higher amount of money without any hassle.
The RBI had also made the National Automated Clearing House (NACH) available on all days effective August 1, 2021. It’s a bulk payment system used for one-to-many credit transfers such as payment of interest, dividend, salary & pension.
Meanwhile, RBI decided to keep key policy rates intact in its monetary policy announcement today and held the growth projections unchanged at 9.5%.
With RTGS now operational round the clock, there has been a corresponding rise in settlement cycles of IMPS, thereby decreasing the credit and settlement risks.
“In view of the importance of the IMPS system in the processing of domestic payment transactions, it is proposed to increase the per-transaction limit from ₹2 lakh to ₹5 lakh for channels other than SMS and IVRS. This will lead to a further increase in digital payments and will provide an additional facility to customers for making digital payments beyond ₹2 lakh," the RBI said in a statement.
Moreover, RBI decided to keep the benchmark interest rate unchanged at 4 percent but maintained an accommodative stance even as the economy is showing signs of recovery after the second COVID wave.
This is the 8th time in a row that the Monetary Policy Committee headed by RBI Governor has maintained the status quo.
