business-standard.com 08 Apr, 2021 18:30 am

Payments banks can now hold max balance of Rs 2 lakh per customer

Payments banks can now hold max balance of Rs 2 lakh per customer
Read more about Payments banks can now hold max balance of Rs 2 lakh per customer on Business Standard. The RBI has doubled the limit of maximum balance that an individual customer can hold with payments banks to Rs 2 lakh from Rs 1 lakh earlier with immediate effect

strong payments banks | Banking sector | MSMEs Press Trust of India  | Mumbai Last Updated at April 8, 2021 21:49 IST ALSO READ BS Technology Round Table: Covid-19 pandemic sends digital payments soaring Promote competition BS Banking Annual: Total assets to interest income, here're the key numbers RBI Monetary policy highlights: Inflation outlook uncertain, says RBI guv RBI monetary policy announcements: Highlights and key takeaways The RBI has doubled the limit of maximum balance that an individual customer can hold with payments banks to Rs 2 lakh from Rs 1 lakh earlier with immediate effect to expand the ability of such lenders to cater to the needs of MSMEs and other businesses.The extant norms allow payments banks (PBs) to hold a maximum balance of Rs 1 lakh per individual customer.The decision to double the limit was based on a review of the performance of payments banks and with a view to encourage their efforts for financial inclusion and to expand their ability to cater to the needs of their customers, including MSMEs, small traders and merchants.There are about half a dozen payments banks in the country.

Digital Editor Read our full coverage on payments banks"Considering the progress made by PBs in furthering financial inclusion and with the objective of giving more flexibility to the PBs, it has been decided to enhance the limit of maximum balance at the end of the day from Rs 1 lakh to Rs 2 lakh per individual customer of PBs with immediate effect," the Reserve Bank of India said in a circular.

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