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RBI proposes to increase IMPS transaction limit to Rs 5 lakh

Reserve Bank of India Governor Shaktikanta Das on Friday proposed to increase the limit on Immediate Payment Service (IMPS) transactions to Rs 5 lakh per transaction from the existing limit of Rs 2 lakh.

“Instant Payment Service (IMPS) facilitates 24×7 instant domestic money transfer through various channels. In view of the importance of IMPS system and enhanced consumer convenience, it is proposed to increase the per transaction limit from Rs.2 lakh to Rs.5 lakh. Governor Das said at the end of the bi-monthly Monetary Policy Committee (MPC) review meeting that began on Wednesday.

“Given 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 IVRS. This will further increase digital payments and customers. will provide an additional facility for making digital payments above Rs 2 lakh,” the Reserve Bank of India said.

Meanwhile, in order to ensure wider availability of Payment Acceptance (PA) through Point of Sale (PoS) terminals, Quick Response (QR) codes etc., RBI has leveraged geo-tagging technology to target those sectors. A framework has been proposed for Lack of PA infrastructure.

Earlier this month, the Reserve Bank of India’s revised auto debit rules came into force. As per the new auto debit rules, all types of repetitive payments, especially those made through credit and debit cards and the value of which are Rs 5,000 and above, shall be notified to the customer by a notification 24 hours in advance. being informed. .

Meanwhile, the Reserve Bank of India maintained status quo on interest rates for the eighth time in a row, while asserting that rates would remain unchanged “as long as is necessary to revive growth.” The repo rate – the rate at which the central bank lends short-term money to banks – is unchanged at 4 per cent and the reverse repo rate remains the same at 3.35 per cent, the RBI governor said.

The central bank has also maintained an ‘accommodative’ monetary stance, i.e. willingness to cut rates or keep them stable depending on the evolving situation.

The Reserve Bank last cut its policy rates on May 22, 2020, in an off-policy cycle when the COVID-19 pandemic rocked the country for the first time.

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