On Friday, Reserve Bank of India Governor Shaktikanta Das suggested raising the ceiling on Immediate Payment Service (IMPS) transactions from the existing maximum of 2 lakh to 5 lakh. “The Immediate Payment Service (IMPS) provides immediate domestic money transfer through a variety of channels 24 hours a day, seven days a week.”
It is suggested to increase the per transaction limit from 2 lakh to 5 lakh in light of the importance of the IMPS system and for increased consumer convenience.” Governor Das made the remarks after the MPC’s bi-monthly review meeting, which began on Wednesday.
Read also: Growth Rebound: RBI retains FY22 GDP growth projection at 9.5%
Meanwhile, the RBI has suggested introducing a framework for utilizing geotagging technology to target regions with weak PA infrastructure to guarantee a greater availability of payments acceptance (PA) through the point of sale (PoS) terminals and rapid response (QR) codes.
The Reserve Bank of India’s updated auto-debit regulations went into effect earlier this month. According to the new auto-debit guidelines, all types of recurring payments, notably those made with credit and debit cards and valued at $5,000 or more, are preceded by a message 24 hours before the planned payment alerting consumers of the payment.
Meanwhile, the Reserve Bank of India kept interest rates steady for the eighth meeting in a row, stating that they will remain constant “as long as required to restore growth.” According to the RBI Governor, the repo rate, which is the rate at which the central bank loans short-term money to banks, remains at 4%, while the reverse repo rate remains at 3.35 percent.
Read also: New RBI rule on recurring payment not to impact transactions with compliant merchants
The central bank also maintained an ‘accommodative monetary policy stance, which means it is prepared to lower or hold interest rates depending on the scenario. When the covid-19 epidemic initially rocked the country on May 22, 2020, the Reserve Bank reduced its policy rates in an off-policy cycle.
