RBI doubles maximum balance limit to Rs 2 Lakh in payment banks

The Reserve Bank of India (RBI) has enhanced the maximum balance at the end of the day for payments banks to Rs 2 lakh per customer with immediate effect.

The development comes a day after RBI Governor Shaktikanta Das announced the central bank’s decision to enhance the limit.

“Considering the progress made by PBs (payments banks) 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 at the end of the day from Rs 1 lakh to 2 lakh per individual customer of PBs with immediate effect,” the RBI said in a circular to the CEOs of payments banks. Previously, the payments banks were restricted to hold a maximum balance of Rs 1 lakh per individual customer at the end of the day. It was also indicated in the guidelines that after gauging the performance of the payments banks, that RBI may consider increasing the maximum balance limit, the circular said.