The Reserve Bank of India (RBI) on Friday increased the IMPS limit from Rs 2 lakh to Rs 5 lakh. As per that, the daily limit of the IMPS fund transfer mechanism has been enhanced for the bank customers and will further aid in a seamless money transfer.
As informed by RBI Governor Shaktikanta Das, the Immediate Payment Service or IMPS transfer limit will be now increased considering the importance of IMPS in the COVID-19 pandemic. It will further enable instant domestic fund transfer and enhance consumer convenience, he added.
Das while addressing the Monetary Policy Committee on Friday further announced that a framework will be also introduced for offline retail digital payment solutions. The introduction will help to reach the remote areas of the country which has very little internet connectivity and thus will expand the digital payments.
Immediate Payment Service or IMPS is a 24/7 service for transferring real-time money. It was introduced in 2010 and allows the transfer of funds instantly across India from one bank to another. Not just it is a safe medium of transfer but is also very economical.
As stated by the National Payments Corporation of India (NPCI), IMPS is a big step towards building a seamless mobile banking service in India. It is also one of the earliest initiatives taken by the Central government enabling bank customers to use their mobile phones as a channel for accessing bank accounts and transactions.
Meanwhile, anyone who needs to use the IMPS service needs to register with the mobile banking service of their respective bank. Later, the Mobile Money Identifier and MPIN from the bank will be needed for transactions. Later on, the user will need to download the mobile banking application and thereafter will be able to transfer money via IMPS.