Business

RBI enhances limit of maximum balance for payments banks

ANI | April 07, 2021 11:41 AM
Punjab Tribune Bureau

Mumbai (Maharashtra) [India], April 7 (ANI): The Reserve Bank of India (RBI) on Wednesday enhanced the maximum end-of-day balance limit for payment banks from Rs 1 lakh per individual to Rs 2 lakh with immediate effect.

This has been done to furthering financial inclusion and to expand the ability of payments banks to cater to the growing needs of customers, said RBI Governor Shaktikanta Das.

At the same time, membership to RBI-operated centralised payment systems RTGS and NEFT has been allowed for non-bank payment institutions.

This facility is expected to minimise settlement risk in the financial system and enhance the reach of digital financial services to all user segments, said Das.

To nurture the still nascent growth impulses, the RBI said it is necessary to support the continued flow of credit to the real economy.

Accordingly, liquidity support of Rs 50,000 crore for fresh lending during 2021-22 will be provided to financial institutions: Rs 25,000 crore to NABARD, Rs 10,000 crore to NHB and Rs 15,000 crore to SIDBI.

The RBI also extended the deadline for TLTRO on-tap liquidity scheme to September 30 from March 31. This has been done to increase the focus of liquidity measures on the revival of activity in specific sectors.

Besides, said Das, a committee will be formed to undertake a comprehensive review of the working of asset reconstruction companies and recommend measures to enable them to meet the growing requirements of the financial sector.

The RBI has also proposed to construct and publish a financial inclusion index based on multiple parameters. This will be published in July every year for the financial year ending previous March.

Das said the hope generated by vaccination drives in several countries at the start of the year 2021 has been somewhat offset by rising infections and new mutant strains worldwide.

"Yet, the speed and collective endeavour with which the world mobilised scientific energies to develop vaccines, and pandemic-related protocols, that have now become a way of life, give us hope and confidence that we will sail through this renewed second/third surge." (ANI)

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