Fino Payments Bank reported on Wednesday that its end-of-day account balance cap for MSMEs, small traders, and retail customers has been increased to Rs 2 lakh. The bank, which turned a profit in the fourth quarter of FY20, established the increased cap on May 1, 2021. The move was in line with the Reserve Bank of India’s (RBI) announcement last month that it would raise the maximum balance limit for payments banks at the end of the day from Rs 1 lakh to Rs 2 lakh in order to enhance financial inclusion. According to a notification issued by the RBI on April 7, “after reviewing the performance of payments banks and to promote their efforts for financial inclusion, it was decided to increase the maximum balance at the end of the day from Rs 1 lakh to Rs 2 lakh per individual customer.”
“Our customers will be able to save more money in their accounts, thanks to the expanded deposit limit. Furthermore, our current sweep account process with our partner bank continues, allowing customers to save up to Rs 2 lakh,” said Ashish Ahuja, COO, Fino Payments Bank. The current savings interest rate will apply to funds in the Fino account up to Rs 2 lakh, while funds in the sweep account will receive interest rates as fixed by its partner bank Suryoday Small Finance Bank.
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 auto insurance through Fino Payments Bank’s micro ATM and AePS enabled financial services distribution network, which includes 410 branches and more than 25,000 banking points. Payment banks, unlike normal banks, are not permitted to lend money to their customers, to open fixed or revolving deposits, or to maintain a balance of more than Rs 1 lakh in any account. In addition to Airtel Payments Bank, India Post Payments Bank, and Paytm Payments Bank, Jio Payments Bank, and NSDL Payments Bank there are five other RBI-approved payments banks operating in the country.
