As amid the pandemic, the use of e-wallets expanded and now to make it more easier for users, the RBI in its first MPC decision announced that the maximum end of day balance can be now Rs. 2 lakh as against Rs. 1 lakh earlier.
So, now in payment banks or e-wallet that allow only deposits and do not provide loans, customers can now maintain a maximum of Rs. 2 lakh. These wallets can be Paytm, India Post Payments Bank, PayWorld Money and Airtel Payments Bank among others.
For it the RBI statement on Wednesday said this is done to "promote optimal utilisation of payment instruments like cards, wallets as infrastructures such as PoS devices, ATM, QR codes, and bill-payment touchpoints are still scarce." Also, this facility of enhancing the outstanding limit in such pre-paid instruments can be availed if there is migration to full-KYC.
The move will enable to expand payments banks as well help in their financial inclusion and this way will be able to cater to small traders, merchants and MSMEs alike.
Now notably, said this increase in PPI full KYC limit to Rs. 2 lakh will help in the migration to complete KYC. At the same time, wallet customers will be able to withdraw money from any nearby cash POS or ATM instead of having any bank account for withdrawing cash.
"This will enable a deep-rooted penetration of payment wallets into India's vast rural areas as well as increase the adoption of digital payments as the wallet holder, now, has the option of withdrawal - which was hitherto unavailable", said Ketan Doshi, managing director at PayPoint India.