Reserve Bank of India (RBI) has come up with a new statement about the amount limit on Digital Wallets. After the announcement of the ban of 500 and 1000 notes, people are using digital wallets to pay goods.
Now, RBI has released a notification mentioning that it has increased the balance limit on all digital wallets. Keeping the public issues in mind following the recent demonetisation from the Government. Reserve Bank of India has released the circular about increasing the amount limit on digital wallets.
According to the notification, RBI has doubled the balance limit on digital wallets to Rs 20000 per month. Earlier, the limit restricted to Rs 10000 per month only, and now it has doubled the limit. The changed will apply from 21 November 2016, to 30 December 2016.
People are using digital wallets such as Mobikwik, Paytm and Free Charge to pay goods for their daily usage. RBI in a notification said, “A special privilege has now been enabled for small merchants whereby PPIs issuers can issue PPIs to such merchants. While balance in such PPIs cannot exceed Rs 20000/- at any point in time, the merchants can hand over funds from such PPIs to their linked bank accounts up to Rs 50000 without any limit per transaction.
— Vijay Shekhar Sharma (@vijayshekhar) November 22, 2016
FreeCharge CEO Govind Rajan in a statement said, “We welcome RBI’s decision to increase the cash limits on wallets to Rs 20000 for users and Rs 50000 for merchant bank transfers. The latest statement on increasing amount limits on Digital Wallets will benefit the users and small merchants. In recent days, the digital wallets usage increased and the latest initiative is very helpful for both users and merchants.
Upasana Taku, Co-Founder, Mobikwik said that “RBI’s new statements will boost the adoption of mobile wallets in the country and ease the challenges which are being faced by the common man and local shopkeepers due to the cash crisis.”
#Digitalwallets like FreeCharge, Paytm, and Mobikwik users may increase. As e-wallet downloads are more in number after ban of Rs 500 ad Rs 1000 notes.