Fino Payments Bank on Wednesday announced growing its finish-of-the-day account balance limit to Rs 2 lakh for buyers like MSMEs, smaller traders, and retail buyers. The bank, which became lucrative in the fourth quarter of FY20, went live with the enhanced limit productive May 1, 2021. The move was in line with the Reserve Bank of India’s (RBI) announcement last month to enhance the maximum balance limit at the finish of the day for payments banks to Rs 2 lakh from Rs 1 lakh earlier in order to enhance monetary inclusion. “After reviewing the performance of payments banks and to encourage their efforts for financial inclusion it was decided to enhance the limit of maximum balance at end of the day from Rs 1 lakh to Rs 2 lakh per individual customer,” a notification by RBI on April 7 had stated.
“The increased deposit limit allows our customers to save more money in their account. Further, our existing sweep account mechanism continues with our partner bank wherein customers can save funds in excess of Rs 2 lakh,” stated Ashish Ahuja, COO, Fino Payments Bank. Up to Rs 2 lakh in the Fino account, the current savings interest price will be applicable whilst funds in the sweep account will get interest prices as set by its companion bank Suryoday Small Finance Bank.
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Fino Payments Bank’s micro ATM and AePS enabled monetary services distribution network like 410 branches and more than 25,000 banking points permit persons to open a new bank account, get debit cards, do deposit, withdrawal, or income transfer transactions, spend utility bills, loan EMIs, and obtain wellness, life and motor insurance coverage. Unlike common banks, payments banks are not permitted to lend income to their buyers, they can not open Fixed deposits or recurring deposits, and also can not permit a balance of more than Rs 1 lakh in any account. Currently there are 5 other RBI-authorized payments banks operating in the nation viz., Airtel Payments Bank, India Post Payments Bank, Paytm Payments Bank, Jio Payments Bank, and NSDL Payments Bank.