RBI’s Latest Reforms: Big Boost For Payments Banks; RTGS, NEFT Opened Up
After the RBI released its Master Directions in October 2017, digital wallets were expected to become interoperable within six months. Payments Banks Limits EasedAnother issue that has been a drag on the fintech sector’s growth is the restriction of allowing payments banks to hold a maximum balance of INR 1 lakh per individual customer. Users will also be allowed to withdraw cash up to a certain limit from their digital wallets so as to encourage more digital adoption, the RBI added. RTGS, NEFT Opened Up For Fintech PlayersIn what could become another`inflection point to catalyse digital payments, the RBI has proposed to enable non-bank payments companies to take direct membership in central payments systems like NEFT and RTGS. This facility is expected to minimise settlement risk in the financial system and enhance the reach of digital financial services to all user segments.