imps: RBI more than doubles limit on IMPS to Rs 5 lakh

imps: RBI more than doubles limit on IMPS to Rs 5 lakh

The Reserve Bank of India on Friday more than doubled the limit on Immediate Payment Service (IMPS) to Rs 5 lakh from the current Rs 2 lakh. The central bank had recently made the real-time gross settlement system or RTGS operational round-the clock and increased the settlement cycles of IMPS, to reduce credit and settlement risks.

“In view of the importance of the IMPS system in 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 Interactive Voice Response System (IVRS),”the RBI said as part of its monetary policy announcement. “This will lead to further increase in digital payments and will provide an additional facility to customers for making digital payments beyond Rs 2 lakh.”

IMPS which has been developed by the National Payments Corporation of India (NPCI) provides 24×7 instant domestic funds transfer facility. The service accessible through internet banking, mobile banking, bank branches, ATMs, SMS and IVRS. The per-transaction limit for SMS and IVRS channels continues to remain capped at Rs 5000.

RBI keeps policy rate unchanged 8th time in a row; maintains accommodative stance

RBI’s Monetary Policy Committee (MPC) decided to keep key rates unchanged, said Governor Shaktikanta Das, announcing the outcome of the three-day bi-monthly review on Friday. Das said the MPC voted to keep the repo rate unchanged at 4% and maintained an accommodative stance to support growth. Reverse repo rate also remains unchanged at 3.35%.

In addition to this, the central bank also said it will soon launch a framework to carry our retail digital paymenrs in the offline mode across the country, this after the RBI conducted three pilot tests in different parts of the country during the period from September 2020 to June 2021 involving small-value transactions covering a volume of 2.41 lakh for value Rs 1.16 crore.

“The learnings indicate that there is a scope to introduce such solutions, especially in remote areas. Given the experience gained from the pilots and the encouraging feedback, it is proposed to introduce a framework for carrying out retail digital payments in offline mode across the country,” the RBI said.

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