RBI Increases Exceptional Deposit Limits In Wallets, Payment Banks To Rs 2 Lakh
The Reserve Bank of India has raised unpaid deposit limits in wallets and payment banks, with the aim of fostering financial inclusion and expanding the ability of these lenders to meet the growing needs of their clients.
Customers will be allowed to hold balances up to Rs 2 lakh in their payment bank accounts against the current limit of Rs 1 lakh, Shaktikanta Das, governor of the country’s central bank, said at a press briefing after that the Monetary Policy Committee announced its policy decision. . The improved end-of-day deposit limit, Das said, will apply immediately.
Payment banks are a form of differentiated banking services licensed by the RBI.
The central bank will also make it mandatory for issuers of prepaid payment instruments that fully comply with your know your customers standards to be fully interoperable with other payment acceptance infrastructures, Das said. This will enhance interoperability between payment instruments, which is currently not at a satisfactory level.
To encourage PPI issuers to migrate to full KYC compliance, the central bank will also allow customer balances up to Rs 2 lakh for these instruments. Currently, a client with a fully KYC compliant PPI can hold a balance worth Rs 1 lakh in the instrument.
“The industry was asking the regulator for a higher deposit limit. Directionally, however, this shows that the RBI is increasingly comfortable allowing payment banks and PPI issuers to hold higher customer deposits. This is certainly a great advantage for payment banks as well as their customers, ”said Rishi Gupta, Managing Director and CEO of Fino Payments Bank.
The RBI will also allow cash withdrawals on fully KYC-compliant PPIs issued by non-banks. Under current standards, only KYC compliant PPIs issued by banks are allowed to facilitate cash withdrawals for customers.
“This measure, coupled with the interoperability mandate, will drive the migration to fully KYC PUPs and also complement the acceptance infrastructure at Level III-VI centers,” said Das.
The banking regulator will issue detailed regulations regarding PPI issuers, which will allow sufficient time for the transition to an interoperable and fully KYC-compliant system, he said.