The decision was announced by Reserve Bank governor Shaktikanta Das while revealing the outcome of the bi-monthly monetary policy meet.
“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,” he said.
The proposal will lead to further increase in digital payments and also provide an additional facility to customers for making such transfers beyond Rs 2 lakh, Das added.
IMPS is a system that facilitates instant 24×7 fund transfer. It is accessible various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS.
The system is managed by National Payments Corporation of India (NPCI).
The RBI governor further noted that with RTGS operational round the clock, there has been a corresponding increase in settlement cycles of IMPS, which reduces 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.
“Given the encouraging experience gained from the pilot tests, it is proposed to introduce a framework for retail digital payments in offline mode across the country. This will further expand the reach of digital payments and open up new opportunities for individuals and businesses,” Das said.
Many initiatives have been taken by the central bank to promote and expand the purview of digital payments as well as enhance security.
In December last year, the real time gross settlement (RTGS) facility — which is used for fund transfers up to Rs 2 lakh — was made 24×7.
(With inputs from agencies)