RBI Raises IMPS limit from ₹2 lakh to ₹5 lakh to Promote Digital Transactions
- ByManjeet Singh | October 8, 2021
RBI raises IMPS limit from ₹2 lakh to ₹5 lakh to promote digital transactions The Reserve Bank of India on Friday proposed increasing the maximum transaction limit for Immediate Payment Service (IMPS) from Rs 2 lakh to Rs 5 lakh in order to promote digital transactions.
A major payment system managed by NPCI, IMPS allows 24×7 instant domestic funds transfers. It can be accessed through various channels, including internet banking, mobile apps, ATMs, SMS, and IVRS. With the 24/7 operation of RTGS, IMPS settlement cycles have increased correspondingly, reducing credit and settlement risks.
After the Bi-Monetary Monetary Policy Review, RBI Governor Shaktikanta Das announced measures to increase the limit per transaction to the equivalent of five lakhs. This is to increase consumer convenience.
In addition to increasing digital payments, this will also lead to the availability of additional payment options for customers beyond the threshold of *2 lakh, he said, adding that instructions on this matter would be issued separately. As part of the Reserve Bank’s proposal, an online payments framework will also be introduced across the country.
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