NEWS
RBI MORE THAN DOUBLES LIMIT ON IMPS TO RS 5 LAKH
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he Reserve Bank of India on Friday more than doubled the limit on Immediate Payment Service (IMPS) to INR 5 lakh from the current INR 2 lakh. The central bank had recently made the real-time gross settlement system or RTGS operational round-the clock and increased the settlement cycles of IMPS, to reduce credit and settlement risks. “In view of the importance of the IMPS system in processing of domestic payment transactions, it is proposed to increase the per-transaction limit from INR 2 lakh to INR 5 lakh for channels other than SMS and Interactive Voice Response System (IVRS),”the RBI said as part of its monetary
policy announcement. “This will lead to further increase in digital payments and will provide an additional facility to customers for making digital payments beyond INR 2 lakh.” IMPS which has been developed by the National Payments Corporation of India (NPCI) provides 24×7 instant domestic funds transfer facility. The service accessible through internet banking, mobile banking, bank branches, ATMs, SMS and IVRS. The per-transaction limit for SMS and IVRS channels continues to remain capped at INR 5000. In addition to this, the central bank also said it will soon launch a framework to carry our retail digital paymenrs in the offline
mode across the country, this after the RBI conducted three pilot tests in different parts of the country during the period from September 2020 to June 2021 involving smallvalue transactions covering a volume of 2.41 lakh for value INR 1.16 crore. “The learnings indicate that there
is a scope to introduce such solutions, especially in remote areas. Given the experience gained from the pilots and the encouraging feedback, it is proposed to introduce a framework for carrying out retail digital payments in offline mode across the country,” the RBI said.
ICICI BANK EXECUTES FIRST TERM LOAN DERIVATIVE DEAL LINKED TO SOFR
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CICI Bank lately announced that it has executed its first term loan and cross-currency swap derivative transactions linked to Secured Overnight Financing Rate (SOFR). The transactions were carried out with a corporate client through the Bank’s International offices. These transactions indicate the Bank’s preparedness towards a smooth transition from USD LIBOR (London Interbank
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Offered Rate) to transactions linked to Alternative Reference Rates (ARR). In January 2021, the Bank had executed its first interbank money market transaction linked to SOFR, which has been identified as the replacement for USD LIBOR.
November 2021
Commenting on the transaction, MrAnujBhargava, Head - Global Clients Group, ICICI Bank said, “The Bank has been actively working with its clients for a seamless transition from LIBOR to ARRs. These transactions are just the start of the move towards the ARRs and we are confident that increasingly Indian corporates will move towards ARR based transactions."
Mr B. Prasanna, Group Head Global Markets, Sales, Trading and Research, ICICI Bank said, “With the slew of measures announced by regulators globally, there is an increased shift towards ARR linked products in markets. As the cessation deadline approaches, the liquidity in ARR linked products will increase and ICICI Bank is ready to widen its product suite to meet the customer requirements."
