PayNearby’s view on RBI raising transaction limit to Rs. 5 lakh

“IMPS started with Rs 5 lakh limit but the limit was reduced to Rs 2 lakh because of delayed settlement on next day as the beneficiary bank would suffer float loss. Now that there are multiple IMPS settlements in a day, RBI’s move will help people using NEFT for transactions over Rs 2 lakh, move to IMPS because NEFT transactions still takes half an hour. While largely P2P transactions were taking place on IMPS the increase in limit may result in lot of B2B payments gaining speed too. We can see RBI unifying and optimising the payment infrastructure limits appropriately with the increase in the limit of various payment platforms and hope the Domestic Remittance limit for poor will also be revised from the year 2011 limit of 25,000 to 50,000 now to catch up with inflation.” – Anand Kumar Bajaj, MD & CEO, PayNearby