India’s growth outlook is supported by robust domestic engines: RBI
The global economy remained resilient in the first half of 2024, with declining inflation supporting household spending, it said in its October Bulletin.
The Reserve Bank of India has hiked the limit of maximum end of day balance for payment banks to Rs 2 lakh from Rs 1 lakh earlier with immediate effect. This decision aims to expand the ability of such lenders to cater to the needs of MSMEs and other businesses.
The announcement was made by RBI Governor Shaktikanta Das after the meeting of the Monetary Policy Committee on Wednesday.
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The news was well received by the payment banks as they have been seeking an increase in deposit limits for some time now.
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The Reserve Bank of India in its circular said, “Considering the progress made by PBs 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 Rs 2 lakh per individual customer of PBs with immediate effect.”
The decision to double the limit was based on a review of the 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. There are about half a dozen payments banks in the country.
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