Payment Bank client’s balance limit doubled

The RBI has doubled the limit of maximum balance that an individual customer can hold with payments banks (PBs) to ₹2 lakh from ₹1 lakh earlier with immediate effect to expand the ability of lenders to cater to the needs of MSMEs 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 payments banks (PBs) to hold a maximum balance of ₹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 from ₹1 lakh to ₹2 lakh per individual customer with immediate effect,” the RBI said.

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

There are about half a dozen payments banks in the country.

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