Fino Payments Bank goes live with enhanced deposit limit of ₹2 lakh

In line with RBI's revised guideline Fino Payments Bank has increased the end of the day account balance limit to ₹2 lakh for its customers. The bank, which became profitable in the fourth quarter of FY20, went live with the enhanced limit effective 1st May 2021.

As per the initial payments bank guidelines issued by RBI in 2014, the deposit limit was set at ₹1 lakh. A notification from RBI dated 7th April 2021 stated, "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 ₹1 lakh to ₹2 lakh per individual customer."

Announcing the roll out of the new deposit limit Mr. Ashish Ahuja, COO, Fino Payments Bank said, "Following RBI directive, we have updated our processes and systems and went live on 1st of May. 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 ₹2 lakh."

Up to ₹2 lakh in Fino account, existing savings interest rate will be applicable. Funds in sweep account will get interest rates as set by Suryoday Small Finance Bank, the partner bank. It may be noted that the Bank deposits are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) which is a wholly-owned subsidiary of the RBI.

"The raise in limit also enhances the cause of financial inclusion as more people will join the banking fold. MSMEs, small traders and merchants are expected to make use of this offering to save time and better financial planning," added Mr. Ahuja.

Fino Payments Bank's micro ATM and AePS enabled financial services distribution network brings banking closer to the masses. At these banking points, people can open a new bank account, get debit cards, do deposit, withdrawal or money transfer transactions, pay utility bills, loan EMIs, and buy health, life and motor insurance. All in the neighbourhood, completely paperless and Hamesha!

Source : Equity Bulls

Keywords