IMPS transaction limit increased to Rs 5 lakh
The Reserve Bank of India (RBI) has made a big change in the internet banking and online payment sector few days back. During the announcement of RBI’s Monetary Policy on Friday, RBI Governor Shaktikanta Das said that the central bank has increased the limit for transactions done under IMPS i.e. Immediate Payment Service. Till now, users were able to do transactions up to 2 lakhs at a time under this system, but RBI has increased its limit to 5 lakhs. That is, customers will be able to do up to 5 lakh transactions from IMPS at a time.
Immediate Payment Service or IMPS provides 24×7 instant domestic fund transfer facility between multiple mediums. In this, you can transfer money from your account anywhere in the country instantly. This facility is available on Internet Banking, Mobile Banking Apps, Bank Branch ATMs, SMS and IVRS. This is the most popular transaction system among private and general customers. The National Payments Corporation of India or NPCI looks after its operation. Apart from this, the option of RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer) is also available for internet banking, whose rules are different.
Limit will not increase for SMS and IVRS
Excluding SMS and IVRS, the transaction limit of 2 lakhs is applicable from January 2014. The limit for each transaction on SMS and IVRS modes is up to Rs 5,000. The RBI Governor said today that keeping in mind the importance of the IMPS system and the convenience of the customers, this limit has been increased from 2 lakhs to 5 lakhs. However, there has been no change in the transaction limit for SMS and IVRS.
What is the purpose of change?
RBI says that this will further accelerate digital payments and customers will also get an additional facility for making payments above 2 lakhs. RBI will issue further necessary instructions in this regard.
