ECONOMY

RBI Raises Outstanding Deposit Limits In Wallets, Payments Banks To Rs 2 Lakh

The Reserve Bank of India raised the outstanding deposit limits in wallets and payments banks, in a move to aid financial inclusion and expand the ability of such lenders to cater to the growing needs of their customers.

Customers will be allowed to hold balances up to Rs 2 lakh in their payments bank accounts against the current limit of Rs 1 lakh, Shaktikanta Das, governor at the nation’s central bank, said during a media briefing after the Monetary Policy Committee announced its policy decision. The enhancement of end-of-day deposit limit, Das said, will be applicable immediately.

Payments banks are a form of differentiated banking services licensed by the RBI.

The central bank will also make it mandatory for prepaid payment instrument issuers that are fully compliant with know your customer norms to be fully interoperable with other payments acceptance infrastructure, Das said. That will enhance interoperability between payment instruments, which is currently not at a satisfactory level.

To incentivise PPI issuers to migrate to full KYC compliance, the central bank will also allow customer balances up to Rs 2 lakh for such instruments. Currently, a customer with a fully KYC-compliant PPI can hold up to Rs 1 lakh worth balance in the instrument.

The RBI will also allow cash withdrawals from fully KYC-compliant PPIs issued by non-banks. Under the current norms, only KYC-compliant PPIs issued by banks are allowed to facilitate cash withdrawals for customers.

“This measure, in conjunction with the mandate for interoperability, will boost migration to full-KYC PPIs and will also complement the acceptance infrastructure in tier III-VI centres,” Das said.

The banking regulator will release detailed regulations with respect to PPI issuers, which will give adequate time for transition to an interoperable, fully KYC-compliant system, he said.

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