New Delhi: The Reserve Bank of India (RBI) on Friday proposes to increase the limit per transaction under direct payment services (IMP) from Rs 2 Lakh to RS 5 Lakh.
The decision was announced by the Governor of the Shaktikanta Das Reserve Bank while revealing the results of a bi-monthly monetary policy meeting.
“Given the importance of the IMP system in processing domestic payment transactions, it is proposed to increase the transaction limit from Rs 2 Lakh to RS 5 Lakh for channels other than SMS and IVR,” he said.
The proposal will lead to further improvements in digital payments and also provide additional facilities to customers to make such transfers outside Rs 2 Lakh, Das added.
Imps is a system that facilitates 24×7 instant funds.
It can be accessed by various channels such as Internet Banking, mobile banking applications, bank branches, ATMs, SMS and IVR.
The system is managed by the National Pay Corporation of India (NPCI).
The Governor of RBI increasingly notes that with the RTGS operating all the time, there has been an increase in the Imps settlement cycle, which reduces credit and completion risk.
In addition, bank reserves also propose to introduce a framework for retail digital payments in offline mode throughout the country.
“Given the exciting experience of the pilot test, it is proposed to introduce a framework for digital retail payments in offline mode throughout the country.
This will further expand the reach of digital payments and open new opportunities for individuals and businesses,” Das said.
Many initiatives have been taken by the central bank to promote and expand PurView digital payments and improve security.
In December last year, real time brute settlement (RTGS) facilities were used to transfer funds up to RS 2 Lakh – made 24×7.
(With input from agency)