MUMBAI: The RBI has doubled the restrict of utmost balance that an person customer can maintain with payments banking institutions to Rs 2 lakh from Rs 1 lakh before with instant effect to develop the ability of these kinds of loan companies to cater to the desires of MSMEs and other businesses.
The announcement in this regard was made by RBI governor Shaktikanta Das right after the meeting of the Financial Policy Committee on Wednesday.
The extant norms enable payments banking companies (PBs) to maintain a greatest balance of Rs 1 lakh for every particular person customer.
“Taking into consideration the development designed by PBs in furthering economical inclusion and with the objective of offering more overall flexibility to the PBs, it has been made the decision to greatly enhance the limit of highest stability at the end of the working day from Rs 1 lakh to Rs 2 lakh for each individual buyer of PBs with rapid result,” the Reserve Bank of India explained in a circular.
The final decision to double the limit was dependent on a assessment of the overall performance of payments financial institutions and with a check out to inspire their endeavours for fiscal inclusion and to grow their capability to cater to the needs of their prospects, such as MSMEs, smaller traders and merchants.
There are about 50 percent a dozen payments banking companies in the place.