New Delhi: The Reserve Bank of India (RBI) recently increased the Immediate Payment Service (IMPS) transaction limit from Rs 2 lakh to Rs 5 lakh. This measure has been announced in order to make large-scale fund transfers more accessible.
“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 had said on October 8 this year.
The National Payments Corporation of India is in charge of the Immediate Payment Service (IMPS) (NPCI). It is a payment technique that allows for instant domestic financial transfers 24 hours a day, seven days a week. Internet banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS are just few of the ways to use IMPS.
However, IMPS isn’t the only way to send money across the country in a matter of seconds. Other platforms in India that can be utilised to complete the same task include National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS). Citizens can use these transaction processes at any time, and they do not require the transfer of money by a bank employee.
Individuals in India can send money across the country in a matter of seconds using the Instant Money Transfer System (IMPS). This service is available every day of the week, including holidays, 24 hours a day, seven days a week.
Banks require companies interested in using IMPS to have a valid Reserve Bank of India banking or prepaid payment instrument licence. The user must first register for mobile banking in order to use this service. IMPS requires an IFSC code or an Aadhaar number to facilitate transactions.
The RBI has changed the maximum transaction limit for IMPS, which was formerly Rs 2 lakh. Users can now deposit up to Rs 5 lakh using this payment method.
The National Electronic Funds Transfer (NEFT) system is owned and operated by the Reserve Bank of India. The National Electronic Funds Transfer (NEFT) system is a nationwide electronic funds transfer system. It covers the entire country and has a huge network of different types of bank branches.
NEFT transactions are not subject to any restrictions imposed by the Reserve Bank of India. Before making a payment, the user must confirm that his or her bank is a NEFT member. The money that is sent through this site is sent in batches. They’re then split into 48 half-hourly time segments.
The user must connect into their bank portals to add the recipient as a beneficiary. Before the monies may be moved to the beneficiary’s account, the beneficiary’s details must be entered.
The financial transfer is settled in a continuous and real-time manner under this system. This is done on a transaction-by-transaction basis, with no netting involved. Payments made through RTGS are irreversible and final because the money are settled in the Reserve Bank of India’s books.
The Real Time Gross Settlement has no upper limit, but users must transfer a minimum of Rs 2 lakh through this platform.