What is the maximum amount that can be processed through the FPS in a single day?

The maximum amount that can be processed through the Faster Payments Service (FPS) in a single day is indeed £1,000,000. This limit applies to a single transaction for an individual customer using the service, reflecting the system's capabilities and its primary purpose of facilitating quick and efficient payments.

FPS is designed for real-time payments between banks and is particularly geared towards urgent transactions, such as bill payments and peer-to-peer transfers. Setting this limit at £1 million allows consumers and businesses to make significant transactions without lengthy processing times while maintaining a level of security and risk management.

While higher amounts can be significant, they are often not practical for most day-to-day transactions, and other payment methods may be more appropriate for larger sums. The option of a lower limit would restrict the usage of FPS for larger business transactions, while higher values could introduce increased risk in terms of fraud and transaction errors.

In contrast, limits such as £250,000, £500,000, and £2,000,000 would either be too conservative or exceed the risk thresholds established by the framework in which FPS operates. Hence, the limit of £1,000,000 strikes a balance between accommodating substantial payments and managing associated risks effectively.