New Delhi: The Reserve Bank of India (RBI) on Friday (October 8, 2021) announced that it is increasing Immediate Payment Service (IMPS) daily transaction limit increased from Rs 2 lakh to Rs 5 lakh.
What is IMPS?
Immediate Payment Service (IMPS) is an innovative real time payment service that is available round the clock. This service is offered by National Payments Corporation of India (NPCI) that empowers customers to transfer money instantly through banks and RBI authorized Prepaid Payment Instrument Issuers (PPI) across India. IMPS offers instant domestic funds transfer facility 24×7 through various channels viz –Mobile phones, Smartphone- Bank App/ SMS / WAP/USSD (NUUP), Basic phone-SMS/USSD (NUUP), Internet- Bank’s Internet banking facility, and ATM-By Using ATM Card at Banks ATM.
What is RTGS?
RTGS is a financial transaction system, where there is continuous and real-time settlement of fund transfers, individually on a transaction-by-transaction basis. RTGS transactions or transfers have no amount cap.
What is the minimum amount to be remitted through RTGS?
The minimum amount to be remitted through RTGS is Rs 2 lakh with no upper or maximum ceiling.
What is NEFT?
NEFT is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.
What is the minimum amount to be remitted through NEFT?
Although there is no limit imposed by the RBI for funds transfer through NEFT system, some banks may place amount limits based on their own risk perception with the approval of its Board.
Since July 2019, RBI stopped levying charges on transactions through NEFT and RTGS, with an aim to promote digital transactions in the country.