What will be the impact of RBI’s decision to increase the IMPS limit on customers?

“The decision will enhance digital payments and provide an added convenience for customers to make digital payments” ₹2 lakh,” RBI said in its statement on development and regulatory policies issued on October 8.

National Payments Corporation of India’s IMPS is an important payment system that provides 24×7 instant domestic fund transfer facility. It can also be accessed through various channels like Internet Banking, Mobile Banking App, Bank Branches, ATM, SMS and IVRS.

IMPS is easily gaining traction as a payment service due to which it allows transactions.

As per RBI’s annual report, “In 2021, the number of IMPS transactions exceeded” ₹32 trillion were worth more to overtake NEFT transactions ₹29 trillion.”

Why was the limit raised?

IMPS settlement is processed through RTGS of member banks.

Adil Shetty, CEO, BankBazaar.com said, “Real-time gross settlement (RTGS) in banks is processed continuously throughout the business of RTGS, which has now been extended round the clock. As a result, settlement of IMPS is done. As the settlement cycle has increased, RBI has increased the maximum amount that can be transferred through all channels like internet banking, mobile banking apps, bank branches, ATMs etc. ₹5 lakh against the earlier limit of ₹2 lakhs.”

“With RTGS now operational round the clock, there has been a corresponding increase in the settlement cycle of IMPS, thereby reducing credit and settlement risk,” the RBI statement said.

What does it mean for you?

Increasing the amount that can be transferred through IMPS will provide an additional facility for customers to make digital payments ₹ 2 lakhs.

Shetty further added, “Today’s announcements—as well as the previous ones—from 30,000 feet of view have implications for the transfer of money not only within India’s borders but also outside. The level is gaining ground, and the regulator is ensuring that digital transfers of rupee are increasingly secure, accessible, compliant and traceable. Hence, customers can make large amounts round the clock, securely, instantly, whether domestic or Going to be able to move huge amounts abroad.”