SBI announces new slab for IMPS transfer

Hyderabad: State Bank of India(SBI) has announced that it has increased the Immediate Payment Service (IMPS) limit for money transfers done at its bank branches. According to the SBI website, IMPS charges for sending amounts between Rs 2 lakh and Rs 5 lakh will be Rs 20 plus GST, effective from February 1, 2022. In October 2021, the Reserve Bank of India (RBI) increased the transaction limit from Rs 2 lakh to Rs 5 lakh for amount transferred via IMPS. As per RBI's statement on Development and Regulatory Policies, in view of the importance of the IMPS system in processing of domestic payment transactions, it is proposed to increase the per-transaction limit from Rs 2 lakh to Rs 5 lakh for channels other than SMS and IVRS. This will lead to further increase in digital payments beyond Rs 2 lakh.

The per-transaction limit in IMPS, effective from January 2014, is currently capped at Rs 2 lakh for channels other than SMS and IVRS. The per-transaction limit for SMS and IVRS channels is Rs 5000. With RTGS now operational round the clock, there has been a corresponding increase in settlement cycles of IMPS, thereby reducing the credit and settlement risks.

The IMPS of the National Payments Corporation of India (NPCI) is an important payment system providing 24x7 instant domestic funds transfer facility and is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS. It allows customers to transfer money instantly through banks and RBI authorised Prepaid Payment Instrument Issuers (PPI) across India. Customers get the debit and credit confirmation by SMS. It is a service which is available 24 X 7 including on Sundays and holidays. One needs a mobile number and mobile money identifier or bank account and IFSC code or Aadhaar to make payments through IMPS.