The daily transaction limit has been increased to Rs 5 lakh, says RBI

In a bid to make big-ticket fund transfer easier, the Reserve Bank of India (RBI) on Friday enhanced the limit the Immediate Payment Service (IMPS). From now on, bank customers can transfer Rs 5 lakh via IMPS. Earlier the limit for IMPS transfer was restricted at Rs 2 lakh, other than SMS and IVRS. “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 ₹2 lakh to ₹5 lakh," RBI Governor Shaktikanta Das said while announcing the measure.

IMPS has been the springboard of non-stop mobile banking service in the country. It was created to simplify bank transfers using just the recipient's cell phone number. According to the National Payments Corporation of India (NPCI), this was one of the earlier initiatives that allowed bank customers to use mobile instruments as a conduit to access their bank accounts and transfer funds.

In order to be able to use the IMPS transfer, the user must register with the bank's mobile banking service. For a smooth money transfer, the mobile phone number and the Mobile Money Identifier (MMID) of the bank or bank account as well as the IFSC or Aadhaar code are required. The money transfer facility can be accessed through various channels such as internet banking, mobile banking applications, bank branches, ATMs, SMS and IVRS. it will lead to a further increase in digital payments and give customers additional opportunities to make digital payments beyond 2 lakh. The necessary instructions for this are given separately, added the RBI.