New Delhi: The Reserve Bank of India Governor Shaktikanta Das proposed to increase limit on Immediate Payment Service (IMPS) transaction to ₹ 5 lakh per transaction from the current limit of ₹ 2 lakh. “Immediate Payment Service (IMPS) offers instant domestic funds transfer facility 24×7 through various channels. In view of the importance of the IMPS system and for enhanced consumer convenience, it is proposed to increase the per transaction limit from ₹ 2 lakh to ₹ 5 lakh,” Governor Das said at the end of the bi-monthly Monetary Policy Committee (MPC) review meeting that started on Wednesday.
Meanwhile, in order to ensure wider availability of payments acceptance (PA) through point of sale (PoS) terminals and quick response (QR) codes, the RBI has proposed to introduce a framework for leveraging geo-tagging technology to target areas with deficient PA infrastructure.
Earlier this month, Reserve Bank of India’s revised auto debit rules came into force. As per the new auto debit rules, all kinds of repetitive payments, made especially through credit and debit cards and valued at ₹ 5,000 and above, are preceded by a notification 24 hours in advance informing the customers about the scheduled payment.
Meanwhile, the Reserve Bank of India maintained status quo on interest rates for the eighth consecutive time, while asserting that the rates will remain unchanged “as long as necessary to revive growth.” The repo rate – the rate at which the central bank lends short-term money to banks – is unchanged at 4 per cent and the reverse repo rate is the same at 3.35 per cent, the RBI Governor said.
The central bank also retained an ‘accommodative’ monetary stance i.e. a willingness to either cut the rates or keep them steady, depending on the evolving situation.
The Reserve Bank last cut its policy rates on May 22, 2020, in an off-policy cycle when the covid-19 pandemic first shook the country.
RBI maintains status quo for 8th time; retains repo rate at 4 per cent
Mumbai: The Reserve Bank of India (RBI) decided to keep benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance even as the economy is showing signs of recovery after the second Covid wave.
This is the eighth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained status quo. The RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low. The MPC decided to keep benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review.
Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with the RBI. Das said the MPC voted unanimously for keeping interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target. Amidt the rising fuel prices, the retail inflation stood at 5.3 per cent in August. The MPC has been given the mandate to maintain annual inflation at 4 per cent until March 31, 2026, with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent.AGENCIES
