The Reserve Bank of India (“RBI”) vide a circular dated April 08, 2021 (“Circular”) enhanced the limit of maximum balance per customer of a payment bank at the end of the day from Rs. 1,00,000 (Rupees one lac) to Rs. 2,00,000 (Rupees two lac).
Guidelines for Licensing of payments banks issued on November 27, 2014 (“Guidelines”) allowed payments banks to hold a maximum balance of Rs. 1,00,000 (Rupees one lac) per individual customer at the end of the day.
The RBI’s decision to enhance the limit of maximum balance for the customers of payments bank was 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 medium and small enterprises, small traders and merchants.
Please find a copy of the Circular here and a copy of the Guidelines here.
This update has been contributed by Anurag Prasad (Associate).
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