The Reserve Bank of India Governor Shaktikanta Das on Friday proposed to increase limit on Immediate Payment Service (IMPS) transaction to Rs 5 lakh per transaction from the current limit of Rs 2 lakh.
“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,” Governor Das said at the end of the bi-monthly Monetary Policy Committee (MPC) review meeting that started on Wednesday.
Meanwhile, in order to ensure wider availability of payments acceptance (PA) through point of sale (PoS) terminals, quick response (QR) codes, etc. the RBI has proposed to introduce a framework for leveraging geo-tagging technology to target areas with deficient PA infrastructure.
Earlier this month, Reserve Bank of India’s revised auto debit rules came into place. As per the new auto debit rules all kinds of repetitive payments, especially made through credit and debit cards and which are of value of Rs 5,000 and above, are being preceded by a notification, 24 hours in advance, informing the customer about the scheduled payment.
Meanwhile, the Reserve Bank of India maintained status quo on interest rates for the eighth consecutive time, while asserting that the rates will remain unchanged “as long as necessary to revive growth.” The repo rate – the rate at which the central bank lends short-term money to banks – is unchanged at 4 per cent and the reverse repo rate is the same at 3.35 per cent, the RBI Governor said.
The central bank also retained an ‘accommodative’ monetary stance i.e. a willingness to either cut the rates or keep them steady, depending on the evolving situation.
The Reserve Bank last cut its policy rates on May 22, 2020, in an off-policy cycle when the covid-19 pandemic first shook the country.