IMPS provides robust and real-time fund transfer which offers an instant, 24X7, interbank electronic fund transfer service that could be accessed on multiple channels like mobile, internet, ATM, SMS.
New Delhi: The State Bank of India has increased the IMPS (Immediate Payment Service) transaction limit to ₹5 lakh as per the directions of Reserve Bank of India (RBI), reported the livemint. Let us remind our readers that the RBI, in its October policy, raised the IMPS transaction limit to ₹5 lakh from earlier ₹2 lakh.
However, SBI will charge ₹20 plus GST on IMPS transactions above ₹2 lakh till ₹5 lakh, it said in a statement. IMPS provides robust and real-time fund transfer which offers an instant, 24X7, interbank electronic fund transfer service that could be accessed on multiple channels like mobile, internet, ATM, SMS. It also allows transferring of funds instantly within banks across India which is not only safe but also economical. Currently on IMPS, 639 members are live, which includes banks and PPIs, the mint report added.
Several banks levy the charge for customers using IMPS transactions. However, certain banks offer IMPS free of cost depending on the type of account held by the customers or using IMPS via Internet banking.
What are the objectives of IMPS transactions?
- To enable bank customers to use mobile instruments as a channel for accessing their banks accounts and remit funds.
- Making payment simpler just with the mobile number of the beneficiary.
- To sub-serve the goal of Reserve Bank of India (RBI) in electronification of retail payments.
- To facilitate mobile payment systems already introduced in India with the Reserve Bank of India Mobile Payment Guidelines 2008 to be inter-operable across banks and mobile operators in a safe and secured manner.
- To build the foundation for a full range of mobile based Banking services.
