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    Now, you can keep up to Rs 2 lakh in your mobile wallets. Here's how

    Now, you can keep up to Rs 2 lakh in your mobile wallets. Here's how

    Now, you can keep up to Rs 2 lakh in your mobile wallets. Here's how
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    By Anshul   IST (Updated)

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    This means customers will soon be able to keep up to Rs 2 lakh in their mobile wallets such as Paytm Payments Bank, Airtel Payments Bank, India Post Payments Bank, PayWorld Money, among others.

    With the rising prominence of payments banks, the Reserve Bank of India (RBI) doubled their maximum end-of-day balance to Rs 2 lakh from the earlier limit of Rs 1 lakh.
    This means customers will soon be able to keep up to Rs 2 lakh in their mobile wallets such as Paytm Payments Bank, Airtel Payments Bank, India Post Payments Bank, PayWorld Money, among others.
    Payment banks, as we know, are savings account that can offer deposit services but cannot offer loans and advances to the customers.
    In a statement regarding the new initiative, RBI on Wednesday said this is 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."
    The central bank said it will incentivise the migration of prepaid payment instruments (PPIs) to full-KYC by increasing the limit of the outstanding balance in such PPIs from the current Rs 1 lakh to Rs 2 lakh.
    According to Sonam Chandwani, Managing Partner at KS Legal & Associates, this move takes a large stride to promote digital payments banks in the country and also encourage their efforts for financial inclusion of Indians across rural and urban areas.
    "This move is likely to augment the expansion plans of payment banks and cater to the needs of their customers, including MSMEs, small traders and merchants. This will not only increase access to a greater client base for payment banks but will also boost digital transactions across the country," Chandwani said.
    Praveen Dhabhai, director and COO, Payworld Money – a full KYC wallet - hailed this move and said their customers will soon be able to withdraw money from any nearby Cash POS or ATM rather than having a bank account to withdraw cash.
    Secondly, Dhabhai said, the increase in PPI full KYC limit to Rs 2 lakh will also help in migration of PPI to full KYC and would complement acceptance of infrastructure in smaller towns and rural India.
    At present, the facility is allowed only for full KYC PPIs issued by banks through ATMs and Point of Sales terminals, which decreases a customer’s propensity to carry cash.
    The new move by the RBI, Naveen Kukreja, CEO and co-founder, Paisabazaar.com opines, will help in deepening financial inclusion and address the growing banking needs of account holders of payment banks.
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