The Reserve Bank of India(RBI) today increased the daily limit of IMPS transactions to Rs 5 lakh from earlier Rs 2 lakh earlier for the ease of consumers.

The Reserve Bank of India(RBI) today increased the daily limit of IMPS transactions to Rs 5 lakh from earlier Rs 2 lakh earlier for the ease of consumers.

“Immediate Payment Service (IMPS) offers instant domestic funds transfer facility 24×7 through various channels. Given the importance of the IMPS system and for enhanced consumer convenience, it is proposed to increase the per transaction limit from Rs 2 lakh to Rs 5 lakh,” said RBI governor Shaktikanta Das.

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. 

“Because of the importance of the 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 lead to a further increase in digital payments and will provide an additional facility to customers for making digital payments beyond Rs 2 lakh,” the RBI said in a statement. 

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Immediate Payment Service (IMPS) of National Payments Corporation of India (NPCI) is a vital 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. The per-transaction two limits 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.

Meanwhile, the RBI on Friday decided to keep the 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 wave.

This is the eighth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo.

RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.

MPC decided to keep the benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review. Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with RBI.

Das said MPC voted unanimously for keeping the interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.