- Date : 08/10/2021
- Read: 2 mins
The increase in IMPS daily transaction limit from Rs 2 to Rs 5 lakh is available via mobile banking apps, NetBanking platforms, bank branches, and ATMs.
During the bi-monthly monetary policy meeting on October 8, 2021, RBI Governor Shaktikanta Das announced the proposed increase in the daily transaction limit under the Immediate Payment Service (IMPS) from the existing Rs 2 lakh to Rs 5 lakh.
IMPS is a payment system that facilities immediate funds transfer, any time round-the-clock. The system is managed by the National Payments Corporation of India (NPCI) and is available across various online and offline channels.
What is expected?
The increase in IMPS transaction limit from Rs 2 to Rs 5 lakh is available via mobile banking apps, NetBanking platforms, bank branches, and ATMs. IMPS payments via SMS and IVRS have been capped at Rs 5000 per transaction.
The RBI is also working on various initiatives to promote and expand the accessibility of digital payments across the country. It is also considering an offline framework by leveraging geo-tagging technology for retail digital payments at locations that have a deficient payment acceptance.
"Given the encouraging experience gained from the pilot test, it is proposed to introduce a framework for retail digital payments in offline mode across the country. This will further expand the reach of digital payments and open up new opportunities for individuals and businesses," said Mr Das, according to a media report.
Daily transaction limits for IMPS, NEFT, RTGS and UPI.
What are the other changes?
Starting October 01, 2021, the RBI introduced new auto-debit rules linked to recurring debit and credit card payments. All payments exceeding Rs 5000 will be preceded by a 24-hour advance notice regarding the scheduled debit and will have to be validated by the payee.
In December 2020, the Real Time Gross Settlement (RTGS) payment system was also made available 24x7. Uninterrupted access to IMPS and RTGS payments will support the RBI’s efforts to globally integrate the country’s financial markets and offer greater payment flexibility to retail as well as corporate users.