The Governor of the Reserve Bank of India (RBI) announced on 8 October 2021 that the Immediate Payment Service (IMPS) transaction limit is changing. It will now be increased to Rs.5 lakh from Rs.2 lakh for channels other than SMS and IVRS (Interactive Voice Response System).
The change is because IMPS has been gaining popularity due to its ease of usage. Further, according to the governor, this increase is likely to increase digital payments and provide customers with additional facilities for making transactions beyond Rs.2 lakh.
Compared to IMPS, NEFT is available at all hours. However, the transfer occurs in batches of half an hour, and there are no maximum limits set by the RBI on remittance, although different banks may have their limits. For RTGS, the minimum remittance allowed is Rs.2 lakh and has no upper limit. The transfers are continuous.
The IMPS is a payment system handled by the National Payments Corporation of India that provides round a clock instant domestic transfer facility. The accessibility of the system is through mobile banking apps, ATMs, SMS, internet banking, and IVRS.
It enables customers to use mobile instruments to access their bank accounts and remit funds to sub-serve the goal of the RBI in the electronification of retail payments. It also aims to simplify the process of payments and banking based services for the beneficiaries safely and securely. The participants of IMPS are the remitter, beneficiary, banks and National Financial Switch-NPCI (National Payments Corporation of India).
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