Digital payments for business have got a big boost with RBI hiking the limit for immediate payment service to Rs 5 lakh from Rs 2 lakh. The central bank also sought to widen the horizons for digital payments by creating a framework to allow electronic payments even when there is no connectivity. To ensure a balanced spread of digital acceptance, RBI made it mandatory for payment service providers to geotag every card swipe machine and QR code acceptance they deploy.
According to Amrish Rau, CEO, Pine Labs, the hike in IMPS limit opens the opportunity to bring digital payments into the B2B segment, along with high-value retail transactions. “I see this benefitting in inward remittance transactions too. I can see in future UPI limits increasing too and this will mean a lot of high-value transactions will move especially on collections to UPI or IMPS,” said Rau. He added that outward payments by vendors or business partners will have more digitisation.
“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. In view of the importance of the IMPS system in the processing of domestic payment transactions, it is proposed to increase the per-transaction limit from Rs 2 lakh to Rs 5 lakh,” RBI said.
The increase in digital payments has resulted in a corresponding increase in digital frauds. To counter this RBI has decided to rope in fintech expertise to develop fraud mitigation measures.