The Reserve Bank of India has doubled the current deposit limit of payments banks to ₹2 lakh.
“With a view to furthering financial inclusion and to expand the ability of payments banks to cater to the growing needs of their customers, the current limit on maximum end of day balance of ₹1 lakh per individual customer is being increased to ₹2 lakh,” RBI Governor Shaktikanta Das said on Wednesday.
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The move is with immediate effect, he further said.
“The extant ‘Guidelines for Licensing of Payments Banks’ issued on November 27, 2014 allow payments banks to hold a maximum balance of ₹1 lakh per individual customer,” noted the Statement on Developmental and Regulatory Policies.
Based on a review of 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, it has been decided to enhance the limit of maximum balance at end of the day from ₹1 lakh to ₹2 lakh per individual customer, it further said, adding that a circular in this regard shall be issued separately.