SME Times News Bureau | 07 Apr, 2021
In a major boost to operations of the Payments Banks,
the Reserve Bank of India on Wednesday doubled the limit of maximum
balance that an individual customer can hold with them.
Accordingly, Payments Banks can now hold a maximum balance of Rs 2 lakh per individual customers at the end of the day.
The
Guidelines for Licensing of Payments Banks issued on November 27, 2014
allowed such banks to hold a maximum balance of Rs 1 lakh per individual
customer earlier.
RBI in its statement on developmental and
regulatory policies said that the changes have been made 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.
A circular proposing the changes will be issued by RBI separately.
