“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 Rs 2 lakh to Rs 5 lakh,” said RBI governor Shaktikanta Das.
The government has been promoting payments through digital means for which it is taking a number of initiatives like increasing the IMPS limit. It is one of the most-used banking facilities to transfer money in real-time.
Meanwhile, briefing on the monetary policy committee outcomes RBI Governor Shaktikanta Das informed that the central bank kept key interest rates (repo and reverse repo) steady at record lows.
What is IMPS?
Immediate Payment Service (IMPS) is an important payment system providing 24×7 instant domestic funds transfer facility.
IMPS service can be accessed through mobile phones, internet banking, bank branches, ATMs, SMS and IVRS.
This service allows transferring of funds instantly within banks across India which is not only safe but also economical.
IMPS or Immediate Payment Service was first introduced by the Reserve Bank of India (RBI) in 2010.
The Rs 2 lakh limit on transfers through the instant interbank electronic fund transfer mode was introduced by the RBI in January 2014.