In a bid to promote digital transactions, the Reserve Bank on Friday proposed to increase the per transaction limit from Rs 2 lakh to Rs 5 lakh through Immediate Payment Service (IMPS).
The per transaction limit on payments through the IMPS network, other than those done through the short message services and interactive voice response service route, will be raised, the central bank said as part of a statement on developmental and regulatory policies along with the monetary announcement policy.
"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," RBI Governor Shaktikanta Das said while announcing measures after the bi-monthly monetary policy review.
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, he said, adding, necessary instructions in this regard would be issued separately.
IMPS managed by the National Payments Corporation of India (NPCI) is an innovative real-time payment service that is available round the clock. It empowers customers to transfer money instantly through banks and RBI authorized Prepaid Payment Instrument Issuers (PPI) across India.
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 addition, the Reserve Bank also proposed to introduce a framework for retail digital payments in offline mode across the country.
As per the announcement, customers who face internet connectivity issues, which don't allow them to make payments using online digital modes such as UPI, IMPS, RTGS etc., will now be able to use the offline payment mechanisms to make payments in due course. As per the Statement on Development and Regulatory Policies, "The Statement on Developmental and Regulatory Policies dated August 06, 2020 had announced a scheme to conduct pilot tests of innovative technology that enables retail digital payments even in situations where internet connectivity is low / not available (offline mode)