The Buyt Desk
The Reserve Bank of India has increased the transaction limit of IMPS transfers from Rs.2 Lakhs to Rs 5 Lakhs. IMPS is an Immediate Payment Service that enables instant transfer of funds between two accounts. Whenever you transfer money online your bank gives you 3 ways to conduct the transaction. These 3 methods are Real Time Gross Settlement(RTGS), National Electronic Transfer of Funds(NEFT) and IMPS. RTGS enables large value transactions of money. A minimum transfer of Rs 2 Lakhs is mandatory if you opt for RTGS. As far as NEFT is concerned the transfer happens in batches of half an hour to 1 hour. But IMPS on the other hand is an immediate transfer. On the convenience, scale IMPS scores more as it enables instant transfer and is available 24×7. Looking at its popularity RBI has enhanced its limit to Rs 5 lakhs.
The RBI, in its statement, has said, “Considering the significance of the IMPS system in the domestic payment processing transactions, RBI has proposed to increase the per-transaction limit from Rs 2 Lakh to Rs 5 Lakh from channels different from IVRS and SMS. This initiative will further increase the digital payment among customers and will provide an additional benefit to customers for making payments above 2 Lakhs.”
IMPS is the service of the National Payments Corporation of India (NPCI). It is an important payment service for domestic fund transfers. The service works round the clock and is accessible through multiple channels such as internet banking, bank branches, SMS, ATM, mobile banking apps, IVRS, etc.
The limit for per-transaction in IMPS has been effective from January 2014, and at present, which was capped at Rs 2 Lakh for different channels except for IVRS and SMS. The limit for transactions for these two platforms is Rs 5000.
IMPS is one of the most used services of RBI for digital payment transfer. The revised transaction limit will
