BIG change! Keep Rs 2 lakh in your wallet now - Amazon Pay, Paytm, PhonePe, MobiKwik, PayU and Ola Pay
RBI Monetary Policy: A major step has been taken by the RBI today in its bi-monthly Monetary Policy announcements. The Central Bank Governor Shaktikanta Das today announced that amounts up to Rs 2 lakh will be allowed to held in the accounts of the users who use payment wallets. Presently, individuals can keep a maximum balance of Rs 1 lakh
RBI Monetary Policy: A major step has been taken by the RBI today in its bi-monthly Monetary Policy announcements. The Central Bank Governor Shaktikanta Das today announced that amounts up to Rs 2 lakh will be allowed to held in the accounts of the users who use payment wallets. Presently, individuals can keep a maximum balance of Rs 1 lakh.
“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 MSMEs, small traders and merchants, it has been decided to enhance the limit of maximum balance at end of the day from Rs 1 lakh to Rs 2 lakh per individual customer,” the RBI Governor said.
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A circular in this regard shall be issued separately, he further said.
It has also allowed cash withdrawal facility in pre-paid instruments of non-banks, subject to a limit, for full-KYC PPIs of non-bank PPI issuers as well. Presently, cash withdrawal is allowed only for full-KYC PPIs issued by banks and this facility is available through ATMs and PoS terminals.
This has been done to incentivise digital banking and discourage people to carry less cash, the RBI Governor said. “The measure, in conjunction with the mandate for interoperability, will give boost to migration to full-KYC PPIs and would also complement the acceptance infrastructure in Tier III to VI centres. Necessary instructions will be issued separately,” the Governor said during his Monetary Policy Speech.
The reserve bank has also done this to facilitate digital payments further. Good news for those who use online banking modes like the RTGS and NEFT for making payments. The RBI today also increased the ambit of the RTGS and NEFT payment modes to non-bank entities payment space including Prepaid Payment Instrument (PPI) issuers, Card Networks, White Label ATM (WLA) operators, Trade Receivables Discounting System (TReDS) platforms).
Non-bank payment system operators include Amazon Pay, Paytm, PhonePe, MobiKwik, PayU and Ola Pay etc. This will enable the users of these services to transfer funds via RTGS and NEFT modes.
The membership to the RBI-operated Centralised Payment Systems (CPSs) – RTGS and NEFT – till now were limited to banks, with a few exceptions like clearing corporations and select development financial institutions.
RBI has acknowledged the role of non-bank entities which has grown in importance and volume with new innovated services by leveraging technology that have helped them offer customised solutions.
The inclusion of non-banks for RTGS and NEFT payments will be done in a phased manner, RBI Governor Shaktikanta Das has said during his Monetary Policy speech.
The non-bank entities will now be able to take direct membership in CPSs. “This facility is expected to minimise settlement risk in the financial system and enhance the reach of digital financial services to all user segments,” the RBI Governor said.
“These entities will, however, not be eligible for any liquidity facility from the Reserve Bank to facilitate settlement of their transactions in these CPSs,” he said.
As expected, the RBI in its bi-monthly Monetary Policy 2021 announcements on Wednesday left interest rates unchanged while maintaining an accommodative stance as the economy faces a renewed threat to growth due to the resurgence of coronavirus cases. The central bank kept the benchmark repurchase rate unchanged at 4 per cent and maintained an accommodative policy stance to support growth.
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