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

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

payments banks | Banking sector | MSMEs

Press Trust of India  |  Mumbai 

online banking

The RBI has doubled the limit of maximum balance that an individual customer can hold with 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 and other businesses.

The announcement in this regard was made by RBI Governor Shaktikanta Das after the meeting of the Monetary Policy Committee on Wednesday.

The extant norms allow (PBs) to hold a maximum balance of Rs 1 lakh per individual customer.

"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 said in a circular.

The decision to double the limit was based on a review of the performance of 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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, April 08 2021. 21:31 IST