1 / 10In a good news for consumers, Reserve Bank of India (RBI) today proposed to increase the transaction limit for round-the-clock Immediate Payment Service (IMPS) to Rs 5 lakh.2 / 10“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 Rs 2 lakh to Rs 5 lakh,” RBI Governor Shaktikanta Das announced on Friday.3 / 10IMPS is a round the clock service offered by National Payments Corporation of India (NPCI).4 / 10It is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS.5 / 10The benefits of IMPS are that the service is available even on holidays, safe and secure, easily accessible and cost effective and users get debit and credit confirmation by SMS.6 / 10In its statement on “Developmental and Regulatory Policies” – “Payment and Settlement Systems” dated October 8, 2021, RBI has mentioned “Enhancing Transaction Limit in IMPS to Rs 5 lakh”. The per-transaction limit in IMPS, effective from January 2014, is currently capped at Rs 2 lakh for channels other than SMS and IVRS, RBI stated.7 / 10The per-transaction limit for SMS and IVRS channels is Rs 5,000, according to details provided by RBI.8 / 10With Real Time Gross Settlement (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, RBI said in the statement.9 / 10This 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, RBI stated.10 / 10