IMPS transaction daily limit increased to ₹5 lakh from ₹2 lakh, says RBI

The Reserve Bank of India (RBI) on Friday said that the limit to transfer money under IMPS has been increased from ₹2 lakh to ₹5 lakh. The announcement was made by RBI governor Shaktikanta Das at a press briefing on the monetary policy committee outcomes.

“Immediate Payment Service Transaction Limit to be increased from ₹2 Lakh to ₹5 Lakh considering the importance of IMPS, which enables instant domestic 24*7 fund transfer and to enhance consumer convenience,” Das said at the press conference.

“This will lead to further increase in digital payments and will provide an additional facility to customers for making digital payments beyond ₹2 lakh,” he added.

IMPS is an instant interbank electronic fund transfer service that can be accessed through mobile phones, internet banking, bank branches, ATMs, SMS, and IVRS. IMPS is an important payment system providing 24×7 instant domestic funds transfer facility.

The ₹2 lakh limit was introduced by the RBI in January 2014. This was, however, other than the SMS and IVRS channels.

The per-transaction limit for SMS and IVRS channels is ₹5000.

Meanwhile, the RBI on Friday decided to keep the benchmark interest rate unchanged at 4 percent but maintained an accommodative stance even as the economy is showing signs of recovery after the second COVID wave.