RBI increases limit of maximum balance for payment banks

The limit of maximum end-of-day balance for the payment banks is increased from Rs. 1 lakh per individual to Rs. 2 lakh with an immediate effect.

Created On: Apr 9, 2021 11:21 ISTModified On: Apr 9, 2021 11:21 IST
Balance limit for payment banks

The Reserve Bank of India on April 7, 2021, enhanced the limit of maximum end-of-day balance for the payment banks from Rs. 1 lakh per individual to Rs. 2 lakh with an immediate effect.

According to the RBI Governor Shaktikanta Das, the step has been taken to further the financial inclusion and for expanding the ability of the payment banks to cater to the customer’s growing needs.

The RBI Governor while commenting on the recent surge in the COVID-19 cases stated that the hope generated by the vaccination drives in several countries at the start of 2021 has been somewhat taken backstage amid the rising infections and the new mutant strains.

However, he added, the speed with which the world mobilized to develop the vaccine and pandemic-related protocols, gives hope and confidence that we all will sail together through this second/third surge.

Other Key Decisions:

Membership to centralized payment systems allowed for non-bank payment institutions

The membership to the Reserve Bank of India-operated centralized payment systems NEFT and RTGS has now been allowed for the non-bank payment institutions as well.

The facility by RBI has been expected to minimize the settlement risk in the financial system. It will also help in enhancing the reach of the digital financial services to all the user segments.

Support to the continued flow of credit

According to RBI to nurture the still-nascent growth impulses, it is required to support the continued flow of credit to the real economy.

It further added that the liquidity support of Rs. 50,000 crores will be provided to the financial institutions for the fresh lending during 2021-22: Rs. 25,000 crores to NABARD, Rs. 15,000 crores to SIDBI and Rs. 10,000 crores to NHB.

Deadline for TLTRO on-tap liquidity scheme extended

The apex bank has decided to extend the deadline for TLTRO on-tap liquidity scheme to September 30, 2021, from March 31. The decision has been taken to increase the focus of liquidity measures on the revival of the activity in particular sectors.

Committee to review the asset reconstruction companies

The RBI Governor has informed about the formation of the committee that will do a comprehensive review of the working of asset companies. It will also recommend measures to help them in meeting the growing requirement of the financial sector.

Proposal for financial inclusion index

The Reserve Bank of India has also suggested constructing and publishing a financial inclusion index that will be based on multiple parameters. The index will be published in July every year for the financial year ending previous March.

Take Weekly Tests on app for exam prep and compete with others. Download Current Affairs and GK app

एग्जाम की तैयारी के लिए ऐप पर वीकली टेस्ट लें और दूसरों के साथ प्रतिस्पर्धा करें। डाउनलोड करें करेंट अफेयर्स ऐप

AndroidIOS
Comment ()

Post Comment

3 + 5 =
Post

Comments

    Whatsapp IconGet Updates

    Just Now