RBI hikes Payments Banks deposit limit per customer from Rs 1 lakh to Rs 2 lakh

New Delhi: The Reserve Bank of India (RBI) on Wednesday doubled the limit of maximum balance that an individual customer can hold with Payments Banks.

Henceforth, Payments Banks can hold a maximum balance of Rs 2 lakh per individual customers at the end of the day.

“The extant “Guidelines for Licensing of Payments Banks” issued on November 27, 2014 allow payments banks to hold a maximum balance of ₹ 1 lakh per individual customer. 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, it has been decided to enhance the limit of maximum balance at end of the day from ₹1 lakh to ₹2 lakh per individual customer. A circular in this regard shall be issued separately,” an RBI statement said.

Announcing the Monetary Policy on Wednesday, the central bank decided to keep benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance. Consequently, the Marginal Standing Facility (MSF) rate and the bank rate remain unchanged at 4.25 per cent. The reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with RBI.