Monday, October 18th, 2021

The Reserve Bank of India has increased the transaction limit for the IPMS to 5 lakhs

The Reserve Bank of India (RBI) has increased the transaction limit for the Immediate Payment Service (IMPS) mode of money transfer from Rs 2 lakh to Rs 5 lakh, in response to the increasing popularity of the IMPS way of money transfer.

The National Payments Corporation of India’s (NPCI) IMPS is a vital payment system that offers 24×7 instant domestic funds transfer and is accessible via a variety of channels such as internet banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS. It enables users to transfer money immediately across India via banks and RBI-authorized Prepaid Payment Instrument Issuers (PPI).

The IMPS is one of the most extensively utilize money transfer methods, but the maximum transaction limit of Rs 2 lakh is becoming a major impediment for many clients who desire to conduct larger transactions.

Here are five things you should know about the proposed adjustments to the IMPS limit:

  1. The Reserve Bank has recommended raising the IMPS transaction limit from 2 lakh to 5 lakh for clients who use internet banking, mobile banking apps, bank offices, and ATMs.
  2. The Reserve Bank of India stated in a news release that the transaction limit for accessing IMPS services via SMS and IVRS is 5,000 per transaction.
  3. In the meanwhile, the RBI has recommended introducing a framework for utilising geo-tagging technology to target locations with poor PA infrastructure in order to enable greater availability of payments acceptance (PA) through point of sale (PoS) terminals and quick response (QR) codes.
  4. The Reserve Bank of India’s amended auto debit guidelines went into effect earlier this month. According to the new auto debit guidelines, all types of recurring payments, particularly those made with credit and debit cards and valued at $5,000 or more, must be accompanied by a notification 24 hours in advance advising customers of the scheduled payment.
  5. In December of last year, the Real Time Gross Settlement System (RTGS), which is utilize for large-value transactions, is made available 24 hours a day, seven days a week. The action was intend to help ongoing attempts to globalize the country’s financial markets, facilitate efforts to build international financial centers, and provide greater payment flexibility to domestic corporations and organizations.

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