The Reserve Bank of India made key announcements in its monetary policy meet held on 7th April 2021. The main agenda of the meeting was to encourage the non-bank financial institutions for example payments banks, mobile wallets, etc. Moreover, RBI has also extended the NEFT and RTGS facilities, hiked the maximum end of day balance for payment banks, etc. Let us know in detail about the key announcements:
Hike of Payments Bank Deposit Limit Up To Rs. 2 lakh
The maximum end of day balance for payment banks which earlier was Rs. 1 Lakh has been increased to Rs. 2 lakh by the RBI with immediate effect.
RTGS and NEFT Can Now be Used by Non-Bank Payment Operators Also
In order to enable the non-bank payment system operators such as Prepaid Payment Instrument (PPI), Card Networks, White label ATM Operators, and Trade Receivables Discounting System (TReDS) platforms have been regulated by RBI to take direct memberships in CPSs.
Full-KYC Mandatory for PPIs
As per RBI, full KYC is now mandatory for PPIs to promote the optimal utilization of payment instruments such as cards and wallets. It has also given the scarce acceptance infrastructure like ATMs, QR Codes, PoS devices, etc.
Limit of Mobile Wallets Doubled
The Reserve Bank of India has increased the limit of the outstanding balance in PPIs which is currently at Rs. 1 lakh to Rs. 2 lakh. However, the required instructions will be issued separately.
Non-Banks to Issue Cash Withdrawal from Full KYC PPIs
Currently, the cash withdrawal is only allowed for full-KYC Prepaid Payment Instruments (PPIs) issued by banks. The cash withdrawal facility is now also available via ATMs and PoS devices and the users can withdraw cash per the requirement.