RBI increases IMPS limit to Rs 5 lakh from Rs 2 lakh

The Reserve Bank of India on Friday increased the daily limit of immediate payment service (IMPS) to Rs 5 lakh from current Rs 2 lakh.

Introduced in 2010, IMPS is a 24X7 service to transfer money real-time. It allows transferring of funds instantly within banks across India, which is not only safe but also economical.

Meanwhile, RBI decided to keep key policy rates unchanged but maintained an accommodative stance. RBI’s policy-making body, MPC, has kept repo rate steady at 4 percent.

This is the eighth consecutive time the MPC is maintaining a status quo in rates.

The RBI’s Monetary Policy Committee has decided to maintain the Repo Rate at 4 percent in the October policy.

The policy rate decision was unanimous, stance decision was 5:1, said Governor Das. The announcement is in line with the Street's expectations.

The Governor also announced that Marginal Standing Facility (MSF) has been unchanged at 4.25 percent. He added that the July-September CPI inflation was "lower than anticipated".

The RBI has pegged Q2FY22 GDP growth at 7.9 percent compared to 7.3 percent earlier; Q3FY22 GDP growth at 6.8 percent against 6.3 percent earlier and retained the GDP growth at 6.1 percent for Q4FY22.

The apex bank has lowered its FY22 CPI Inflation target to 5.3 percent from the earlier 5.7 percent. It also saw July-September CPI inflation at 5.1 percent compared to the 5.9 earlier. The October-December CPI Inflation is estimated at 4.5 percent compared to the 5.3 percent earlier.