The IMPS is one of the most widely used money transfer mediums, however, the maximum limit of Rs 2 lakh was becoming a big roadblock for many customers who make higher transactions.
Taking into account the rising popularity of the Immediate Payment Service (IMPS) mode of money transfer, the Reserve Bank of India (RBI) has increased the transaction limit from Rs 2 lakh to Rs 5 lakh.
The IMPS of the National Payments Corporation of India (NPCI) is an important payment system providing 24×7 instant domestic funds transfer facility and is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS. It allows customers to transfer money instantly through banks and RBI authorised Prepaid Payment Instrument Issuers (PPI) across India.
The IMPS is one of the most widely used money transfer mediums, however, the maximum limit of Rs 2 lakh was becoming a big roadblock for many customers who wanted to make higher transactions.
“The per-transaction limit in IMPS, effective from January 2014, is currently capped at Rs 2 lakh for channels other than SMS and IVRS. The per-transaction limit for SMS and IVRS channels is Rs 5000. With RTGS now operational round the clock, there has been a corresponding increase in settlement cycles of IMPS, thereby reducing the credit and settlement risks. In view of the importance of the IMPS system in processing of domestic payment transactions, it is proposed to increase the per-transaction limit from Rs 2 lakh to Rs 5 lakh for channels other than SMS and IVRS. This will lead to further increase in digital payments and will provide an additional facility to customers for making digital payments beyond Rs 2 lakh. Necessary instructions in this regard would be issued separately,” as per As per the RBI’s Statement on Development and Regulatory Policies.
IMPS transactions are channel independent and can be initiated from Mobile/ Internet / ATM channels. Customers get the debit & credit confirmation by SMS. It is a service which is available 24 X 7 including on Sundays and holidays. One needs a mobile number and mobile money identifier or bank account and IFSC code or Aadhaar to make payments through IMPS. Payments can be made using internet banking, mobile banking or ATMs.
It usually takes a few hours in NEFT transfer for the amount to be credited to intended beneficiary. Even with RTGS the transfer is often not instant. Under normal circumstances, the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank must credit the beneficiary’s account within 30 minutes of receiving the funds transfer message.
Banks levy the charge for customers using IMPS transactions. However, certain banks offer IMPS free of cost depending on type of accout held by the customers or using IMPS via Internet banking.