RBI doubles payments bank balance limit to Rs 2 lakh


Now, payment banks customers can keep a balance of up to Rs 2 lakh

Reserve Bank of India (RBI) Governor Shaktikanta Das.

Reserve Bank of India (RBI) Governor Shaktikanta Das.

The Reserve Bank of India (RBI) on April 7 announced that small payments bank can now allow individual customers to keep a balance of up to 2 lakh.

“With a view to furthering the financial inclusion and to expand the ability of payments bank to cater to the growing needs of their customers, the current limit on maximum end of day balance of Rs 1 lakh is being increased to Rs 2 lakh per customer with immediate effect,” RBI governor Shaktikanta Das said.

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Payments banks had earlier urged the RBI to review the customer’s deposit limit. Jointly, payments banks had requested RBI to increase the deposit limit from Rs 1 lakh to Rs 5 lakh.

At present, payments banks are a type of savings account that can offer deposit services but cannot offer loans to the customers. Some of the most popular payments banks include Paytm Payments Bank, Airtel Payments Bank, India Post Payments Bank.

Meanwhile, the RBI Monetary Policy Committee (MPC) on April 7 kept the key policy rates unchanged at 4 percent indicating that a status-quo will desirable at this juncture when the growth-inflation scenario remains uncertain.

(This is a developing story. Please check back for more details)

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