For the convenience of users, the Reserve Bank of India (RBI) increased the daily maximum of IMPS transactions to 5 lakh from 2 lakh previously.
“The Immediate Payment Service (IMPS) provides instant domestic cash transfer through a variety of channels 24 hours a day, seven days a week.” It is proposed to increase the per transaction limit from 2 lakh to 5 lakh in light of the importance of the IMPS system and for increased consumer convenience,” said RBI governor Shaktikanta Das.
With RTGS now available 24 hours a day, IMPS settlement cycles have increased, lowering credit and settlement risks.
“Given the importance of the IMPS system in the processing of domestic payment transactions, it is requested that the per-transaction limit for channels other than SMS and IVRS be increased from 2 lakh to 5 lakh.” The RBI stated in a statement that “this will contribute to a further increase in digital payments and would give customers with an extra opportunity for making digital payments exceeding 2 lakh.”
The National Payments Corporation of India’s (NPCI) Immediate Payment Service (IMPS) is a vital payment system that allows for instant domestic funds transfers 24 hours a day, seven days a week, through a variety of channels including internet banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS. For methods other than SMS and IVRS, the per-transaction 2 limits in IMPS has been set at 2 lakh since January 2014.
The SMS and IVRS channels have a per-transaction limitation of Rs.5,000.
The government has taken a variety of steps to make payment systems like IMPS more appealing in order to boost payments through digital means.