RBI increases Daily limit of IMPS Transaction to Rs 5 Lakh

In order to make big-ticket fund transfer easier, on Friday, the Reserve Bank of India (RBI) has announced to enhance the limit the Immediate Payment Service (IMPS). With the latest update, bank customers can now transfer Rs 5 lakh via IMPS. Earlier the limit for IMPS transfer was restricted at Rs 2 lakh, other than SMS and IVRS.

While making the announcement, RBI Governor Shaktikanta Das said, "Immediate Payment Service (IMPS) offers instant domestic funds transfer facility 24×7 through various channels. In view of the importance of the IMPS system and for enhanced consumer convenience, it is proposed to increase the per-transaction limit from ₹2 lakh to ₹5 lakh." 

In a statement, RBI mentioned, "With RTGS now operational round the clock, there has been a corresponding increase in settlement cycles of IMPS, thereby 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." 

According to National Payments Corporation of India (NPCI), "IMPS was the stepping stone of seamless mobile banking service in the country. It was launched to make banking transfer simpler with just the mobile number of the beneficiary. It was one of the earlier initiatives to enable bank customers to use mobile instruments as a channel for accessing their banks accounts and remit funds." 

In order to use IMPS fund transfer, a customer needs to register with the mobile banking service of the bank. The mobile number and mobile money identifier (MMID) from the bank or bank account and IFSC code or Aadhaar will be required to transfer money seamlessly. This is a real-time money transfer facility which is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS. 

Further, RBI added, "This will lead to further increase in digital payments and will provide an additional facility to customers for making digital payments beyond ₹2 lakh. Necessary instructions in this regard would be issued separately."