Mumbai: In a bid to make big-ticket fund transfer easier, the Reserve Bank of India (RBI) on Friday enhanced the limit the Immediate Payment Service (IMPS).
From now on, bank customers can transfer Rs 5 lakh via IMPS. Earlier the limit for IMPS transfer was restricted at Rs 2 lakh, other than SMS and IVRS. “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,” RBI Governor Shaktikanta Das said while announcing the measure.
Introduced in 2010, IMPS or Immediate Payment Service is a 24X7 service is one of the most-used banking facility to transfer money real time. It usually takes a few hours to transfer money to the beneficiary account via National Electronic Funds Transfer (NEFT). The transfer takes place in half-hourly batches. Real-Time Gross Settlement (RTGS) is a real-time settlement of fund transfers, however, it is not instant. In IMPS, beneficiary accounts usually receive the funds in real time as soon as funds are transferred by the remitting bank.
“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,” RBI mentioned in a statement.
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, as per National Payments Corporation of India (NPCI).
To use IMPS fund transfer, user 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 real-time money transfer facility is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS. IMPS transaction allows customers to transfer money instantly through banks and RBI authorised Prepaid Payment Instrument Issuers (PPI) across India.
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, RBI further added.