The Reserve Bank of India (RBI) on Wednesday said that the central bank has decided to enhance the limit of maximum balance at end of the day from Rs1 lakh to Rs2 lakh per individual customer.
RBI takes the decision based on a review of the performance of payments banks and 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.
In November 2014, RBI issued “Guidelines for Licensing of Payments Banks” which allowed payments banks to hold a maximum balance of Rs1 lakh per individual customer.
RBI will release a circular in this regard separately.
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