RBI raises IMPS transaction limit to Rs 5 lakh

The Reserve Bank on October 8 increased the transaction limit on Immediate Payment Service (IMPS) of the National Payments Corporation of India (NPCI) to Rs 5 lakh from Rs 2 lakh.

IMPS provides round-the-clock instant domestic funds transfer facility and is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS.

The transaction limit of Rs 2 lakh was capped in January 2014 for the channels and for SMS and IVRS the limit is Rs 5,000.

With availability of Real Time Gross Settlement (RTGS) round the clock, RBI Governor Shaktikanta Das said that there has been a corresponding increase in settlement cycles of IMPS, reducing the credit and settlement risks.

"In view of the importance of the IMPS system in processing of domestic payment transactions, it is proposed to increase the per-transaction limit from ₹2 lakh to ₹5 lakh for channels other than SMS and IVRS," he said.

The increase in limit will give further rise to digital payments and create an additional facility to customer for making digital payments beyond Rs 2 lakh. The central bank will soon issue necessary instructions separately.