Published
Nov 23, 2016
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RBI doubles balance limit for e-wallets, transaction volumes likely to surge

Published
Nov 23, 2016

Reserve Bank of India (RBI) doubled the limit of balance for consumers of ewallet firms to Rs 20000 on Tuesday. With this move overall transactions volumes on e-wallet firms are likely to surge even further.
 

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The RBI's step will help push online payments restricting in the backdrop of cash curbs introduced by the Indian government two weeks back. The new guideline will be applicable till end of the year, as per a circular issued by the RBO.
 
"The doubling of limit will have an immensely beneficial impact for users and small merchants. Given the quantum jump in digital wallets usage in recent days, this increase in limits makes it easier for both users and merchants to shift more of their cash transactions to digital wallets. The progressive policies of the RBI and the government's prompt resolution of industry issues will go a long way in building a cash less India," said Govind Rajan, CEO, Freecharge told the Economic Times

Gurgaon-based Mobikwik too praised the move by central bank expected to bring more revenues for the firm.
 
A senior executive at a digital payments platform said Tuesday's announcement by RBI will allow larger size transactions and will not only help the users but merchants who can accept bigger payments.

The RBI has also allowed merchants to transfer up to Rs 50,000 a month from their wallets to their bank accounts.

Since the government's demonetisation drive was announced two weeks ago, leading wallet players like Paytm, Freecharge and Mobikwik have witnessed a perceptible spike in overall transaction volumes along with growth in new users and merchants.
 
 

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