IMPS daily limit increased from Rs 2 lakhs to Rs 5 lakhs

The Reserve Bank of India (RBI) recently upped the daily limit of IMPS transactions to 5 lakh from the previous maximum of 2 lakh in order to make it more convenient for users.

Following the announcement by Reserve Bank of India Governor Shaktikanta Das, the Immediate Payment Service or IMPS transfer limit will be enhanced in light of the relevance of IMPS in the COVID-19 pandemic. He went on to say that it will further enable instant domestic fund transfers and increase consumer convenience.

 

IMPS, or Immediate Payment Service, was introduced in 2010 and is a 24-hour-a-day, seven-day-a-week service that is one of the most widely utilised banking facilities for transferring money in real time. It normally takes a few hours for money to be transferred to a beneficiary’s account using the National Electronic Funds Transfer system (NEFT). The transmission is carried out in half-hourly batches throughout the day. However, Real-Time Gross Settlement (RTGS) is not an instantaneous settlement of fund transfers; rather, it is a real-time settlement of fund transfers. Beneficiary accounts in IMPS often receive funds in real time, as soon as monies are transferred by the remitting bank to the beneficiary account.

In most cases, it takes a few hours for the amount to be credited to the designated beneficiary when using a NEFT transfer. Even when using RTGS, the transfer is not always instantaneous. Under normal circumstances, the beneficiary branches should anticipate to receive the cash in real time as soon as the funds are transferred by the remitting bank to the beneficiary branch’s bank account. Following receipt of the fund transfer message, the beneficiary bank must credit the recipient’s account within 30 minutes of receiving the fund transfer message.

Customers who use IMPS transactions are subject to a fee levied by their financial institutions. However, depending on the type of account held by the user or whether the consumer is using IMPS through Internet banking, some banks may provide IMPS at no charge.

According to the National Payments Corporation of India (NPCI), the introduction of IMPS is a significant step forward in the development of a seamless mobile banking service in India. As a result, it is one of the first measures launched by the Central government that allows bank clients to use their mobile phones to access their bank accounts and conduct transactions.

What is IMPS money transfer ?

Immediate Payment Service ( IMPS) is an easy mode of currency transfer within the Indian banking system without involving a hassle. It is based on the National Financial Switch, operated by NPCI (NCPI), and accepted by the Reserve Bank of India. The payment services are offered through credit cards or debit cards, which can be accessed by anyone with Internet access. Immediate payment service is used mainly for online transactions and remittance, which include remittance to the UK and other European countries.

Using Imps For Money Transfer

To begin, go to the website of an IMPS provider and select the country to which you want to transfer funds. Then, choose the appropriate recipient. Following the selection of the desired bank account number, you will be prompted to enter your account information, including the routing number. Follow the website’s instructions for the routing number and the amount to be transferred. You can also enter the currency code if it is available. When the imps money transfer tab appears, you can select the currency that will be credited to your foreign bank account.

Following the selection of the currency, you will be asked to specify the amount to be transferred as well as the amount of currency to be transferred. Payment instructions are sent via email, and you can choose to pay the amount using a single banking account or to remit the funds instantly via the Internet. Unlike traditional money transfers, this is a real-time process. It enables you to choose the best mode of payment from a variety of options on the market, such as immediate payment service, non-banking account transfers, and international money transfers.

The majority of people use Indian ATMs to transfer money. However, some ATMs accept foreign currency, such as Pounds, Dollars, and Yen. When these currencies are exchanged, these ATMs typically charge a slightly higher service fee. For more information on these ATMs, visit their website or contact the local branch of a bank that offers internet banking to inquire about the availability of these ATMs.

Moxie, a mobile application service, is a relatively new way of making an international money transfer. A mobile application allows users to transfer money using their smartphones, the web, or a special mobile app. Users can also use their laptops, tablets, and other internet-connected devices to access this service. Travelers who want to keep track of their receipts and payments will appreciate this feature.

Sending money via SMS is generally less expensive than sending money through traditional banks and money transfer agents. Fees vary depending on the currency transferred, ranging from ten to forty rupees per transaction. The only currency that charges higher fees is the Euro, which can reach 150 Rupees per day. Importers of goods from the United Kingdom must display the British Pound Sterling logo on their websites to facilitate transactions from this country. Importers of Indian property and goods, as well as those from Sri Lanka and Pakistan, are required to display the Indian rupee symbol.

IRD Guarantee, HDFC, ING Direct, ICICI Bank Limited, and NationalPay are some of the indirect payment providers (ODP) that can be used for bank-to-bank transfers. Bilateral transfers are carried out between Indian financial institutions and their customers, which include PSP networks, banks, and other approved gateways. The Money Transfer Market (MTM), an online clearinghouse, is currently processing OTPs. Various OTPs are currently being tested and developed in the field by Indian financial institutions.

Importers are required to adhere to all of the Reserve Bank of India’s norms and rules (ROI). The importer must provide clear information about the products imported, their total quantity, product identification, expiry dates of goods, and shipment details. The ROI requires the importer to notify the BMPS of any proposed changes to the proposed price list, customs-cleaning details, and any other relevant information. The importer must also explain the need for any special treatment, including exceptions, for accepting BMPS offers of credits and debit notes. Furthermore, the importer must submit all receipts and vouchers for the imported goods.