RBI increases IMPS transaction limit to Rs 5 lakh per transaction


The Reserve Bank of India (RBI) increased the transaction limit for the National Payments Corporation of India’s (NPCI) Immediate Payment Service (IMPS) from Rs 2 lakh to Rs 5 lakh on Friday.

IMPS is a critical payment system that enables instant domestic cash transfers 24 hours a day, seven days a week. It is accessible via a variety of channels, including internet banking, mobile banking apps, bank branches, ATMs, SMS, and Interactive Voice Response (IVR) (IVRS).

According to the RBI, prior to today’s change, effective January 2014, the per-transaction limit in IMPS was Rs 2 lakh for channels other than SMS and IVRS, and Rs 5000 for SMS and IVRS channels.

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With Real Time Gross Settlement (RTGS) now active 24 hours a day, the settlement cycles of IMPS have increased proportionately, thereby mitigating credit and settlement risks.

Given the importance of the IMPS system in processing domestic payment transactions, it was proposed to enhance the per-transaction limit for channels other than SMS and IVRS from Rs 2 lakh to Rs 5 lakh.

“This will result in an increase in digital payments and provide customers with an extra option for digital payments beyond Rs 2 lakh. Separate instructions will be issued in this regard “According to the RBI.

Additionally, the RBI added another cohort to its regulatory sandbox. Three cohorts have been introduced thus far through the Reserve Bank’s Regulatory Sandbox (RS).

Six organisations have successfully exited the First Cohort on ‘Retail Payments,’ while eight entities are conducting testing under the Second Cohort on ‘Cross Border Payments.’

Applications for the Third Cohort of ‘MSME Lending’ are now being accepted.

To help prepare the fintech eco-system, the Fourth Cohort’s topic has been presented as ‘Prevention and Mitigation of Financial Frauds’. The emphasis would be on reducing the latency between the occurrence and detection of frauds, strengthening the fraud governance structure, and shortening the time required to respond to frauds. This cohort’s application window will open in due time.

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Shaktikanta Das, Governor of the Reserve Bank of India, launched today a new plan for retail digital payments in the offline mode.

“In August 2020, a scheme to test technologies that enable digital payments in rural areas with no or limited internet connectivity was announced. Given the positive results of the pilot testing, it is proposed to implement a framework for retail digital payments in the offline mode throughout the country. This will extend the reach of digital payments even farther and create new opportunities for individuals and businesses “‘He stated.

The Reserve Bank allowed small value offline transactions using cards and mobile devices for single payments of up to Rs 200 on a test basis in August last year.

Payment System Operators (PSO), banks, and non-banks may offer digital payments offline under the trial scheme (payments that do not require internet connectivity to take effect).


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