RBI working on offline digital payments framework, hikes IMPS limit to Rs 5 lakh

The per-transaction bounds successful IMPS, effectual from January 2014, is presently capped astatine Rs 2 lakh for channels different than SMS and IVRS, for which it stands astatine Rs 5,000.

The Reserve Bank of India (RBI) connected Friday made a bid of announcements connected the payments system, including an summation successful the per-transaction bounds for Immediate Payment Service (IMPS) to Rs 5 lakh from Rs 2 lakh and the instauration of geo-tagging for outgo strategy interaction points.

The per-transaction bounds successful IMPS, effectual from January 2014, is presently capped astatine Rs 2 lakh for channels different than SMS and IVRS, for which it stands astatine Rs 5,000. “With RTGS present operational circular the clock, determination has been a corresponding summation successful colony cycles of IMPS, thereby reducing the recognition and colony risks. In presumption of the value of the IMPS strategy successful processing of home outgo transactions, it is projected to summation the per-transaction bounds from Rs 2 lakh to Rs 5 lakh for channels different than SMS and IVRS,” the cardinal slope said successful its connection connected developmental and regulatory policies.

Madhusudanan R, co-founder, M2P Fintech, said that the summation successful the IMPS transaction bounds is important due to the fact that the Unified Payments Interface (UPI) is based connected that strategy and a full big of peer-to-peer (P2P) payments and archetypal nationalist connection (IPO) payments volition beryllium simplified arsenic a result. “It volition besides assistance instrumentality immoderate of the load disconnected the RTGS strategy and let banks to absorption amended connected liquidity management. This takes attraction of astir 90% of retail payments,” helium said.

To guarantee a balanced dispersed of acceptance infrastructure crossed the country, it is indispensable to ascertain determination accusation of existing outgo acceptance infrastructure, the RBI said. In this regard, geo-tagging technology, by providing determination accusation connected an ongoing basis, tin beryllium utile successful targeting areas with deficient infrastructure for focussed argumentation action. The cardinal slope accordingly projected to laic down a model for geo-tagging, oregon capturing of geographical coordinates, of carnal outgo acceptance infrastructure, specified arsenic constituent of merchantability (PoS) terminals and speedy effect (QR) codes utilized by merchants. This would complement the Payments Infrastructure Development Fund (PIDF) model by amended deployment of acceptance infrastructure and wider entree to integer payments, the RBI said.

Industry players said that portion the reasoning down this regularisation was not instantly clear, the regulator whitethorn beryllium looking astatine it arsenic a means of making non-bank fintech players much liable for the merchants they acquire. Geo-tagging volition beforehand wider deployment of outgo infrastructure specified arsenic POS terminals and QR codes, said Shivaji Thapliyal, pb expert — organization equities, Yes Securities. “This volition beryllium affirmative for interest income for banks successful the agelong tally connected the acquirer broadside business,” helium said.

Additionally, the RBI said that nether a strategy to behaviour aviator tests for enabling retail integer payments successful the offline mode, 3 pilots were successfully conducted successful antithetic parts of the state betwixt September 2020 and June 2021. The pilots progressive small-value transactions covering a measurement of 2.41 lakh for a worth of Rs 1.16 crore. The cardinal slope concluded that determination is simply a scope to present specified solutions, particularly successful distant areas. “Given the acquisition gained from the pilots and the encouraging feedback, it is projected to present a model for carrying retired retail integer payments successful offline mode crossed the country,” the RBI said.

The cardinal slope announced that the 4th cohort nether its regulatory sandbox volition beryllium connected prevention and mitigation of fiscal frauds. The absorption would beryllium connected utilizing exertion to trim the lag betwixt the occurrence and detection of frauds, strengthening the fraud governance operation and minimising effect clip to frauds, the RBI said. Further, based connected the acquisition gained and the feedback received from stakeholders, the cardinal slope plans to facilitate on-tap exertion for themes of cohorts earlier closed. The 3 cohorts were connected retail payments, cross-border payments and MSME lending.