Hike in deposit limit: Payment banks likely to attract bigger clients

Industry sources said banks had made a case for increasing the limit to Rs 5 lakh in line with the hike in deposit insurance cover

The RBI’s decision to double the maximum balance per day for each individual customer at payment banks to Rs 2 lakh will enhance such firms’ ability to attract bigger customers like MSMEs and small traders and merchants and enhance the viability of the business, said experts.
 
The average balance per account may not rise drastically, but the ability to get clients with higher turnover especially from those owning retail space would grow, said a senior executive with Mumbai-based payment bank. The RBI on Wednesday said the limit of maximum balance has been raised based on a review of payments