SBI Enhances IMPS transaction limit to ₹ 5 lakh.
Why in news:
- The State Bank of India has increased the limit on IMPS (Immediate Payment Service) transactions from Rs 2 lakh to Rs 5 lakh.
- IMPS, offered by National Payments Corporation of India, empowers customers to transfer money instantly through banks and RBI authorised Prepaid Payment Instrument Issuers (PPI) across India.
What is the decision:
- The motive behind the move was to encourage customers towards digital banking.
- For transactions below Rs 2 lakh at the banks, transaction charges are nil, while for between Rs 2-5 lakh, it is kept at Rs 20 plus the Goods and Service Taxes applicable.
- However, charges are nil for transactions done through net banking or SBI’s application ‘YONO’.
- “In case of Branch Channels, there has been no change in the service charges for IMPS done through the Branch Channel in the existing slabs.
- However, a new slab for Rs 2,00,000 to Rs 5,00,000 has been added and the proposed service charges for this slab is Rs 20 + GST w.e.f 01.02.2022,” the bank said in a statement.
About IMPS:
- Immediate Payment Service(IMPS) is an instant payment inter-bank electronic funds transfer system in India.
- IMPS offers an inter-bank electronic fund transfer service through mobile phones.
- The service is available 24×7 throughout the year including bank holidays.
- It is managed by the National Payments Corporation of India (NPCI) and is built upon the existing National Financial Switch network.
About NPCI:
- National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organisation for operating retail payments and settlement systems in India.
- Headquarters – Mumbai
- MD and CEO – Dilip Asbe
- Non exe chairman -Biswamohan Mahapatra
- An initiative of RBI and IBA under the provisions of the Payment and Settlement Systems Act, 2007, NPCI was initiated for creating a robust payment and settlement infrastructure in the country.
- It has changed the way payments are made in India through a bouquet of retail payment products such as RuPay card, Immediate Payment Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), BHIM Aadhaar, National Electronic Toll Collection (NETC) and NPCI Bharat BillPay Limited (NBBL).
- NPCI also launched UPI 2.0 to offer more secure and comprehensive services to consumers and merchants.
- NPCI is focused on bringing innovations in the retail payment systems through the use of technology and is relentlessly working to transform India into a digital economy.
- It is facilitating secure payments solutions with nationwide accessibility at minimal cost in furtherance of India’s aspiration to be a fully digital society.
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