Airtel Payments Bank has increased its day-end account balance limit for customers from Rs 1 lakh to Rs 2 lakh, becoming the first payments bank in the country to do so. According to a statement shared by Airtel, the move is in line with the guideline from the Reserve Bank of India (RBI). Airtel Payments Bank is now the first payments bank in the country to enable an amount of Rs 2 lakh of day-end account balance limit. With this step, customers having an account with the Airtel Payments Bank will be able to save more with the increased limit.
According to the statement, the bank deposits are insured under the Deposit Insurance and Credit Guarantee Corporation or DICGC, which is a wholly-owned subsidiary of the Reserve Bank of India. Airtel Payments Bank has as many as 55 million engaged users. The bank serves its customers through a retail-based distribution network and technology.
The payments bank has a network of more than 500,000 neighborhood banking points, which is bigger than the total number of bank branches and ATMs in the country. The neighborhood banking points take services closer to customers and have also reached the rural pockets. Many of these rural areas never had access to the banking services.
According to Anubrata Biswas, MD and CEO, Airtel Payments Bank, the central bank’s decision to increase the balance limit is an endorsement of the role payments banks have in strengthening digital and financial inclusion in the country.
In its first bi-monthly monetary policy review for the financial year 2021-22, RBI Governor Shaktikanta Das-led committee increased the day-end of payments bank from Rs 1 lakh to Rs 2 lakh, in order to encourage financial inclusion and to cater to the needs of the customers, including MSMEs, small traders, and merchants.