In the month of April 2021, the Reserve Bank of India (RBI) announced to increase themaximum end-of-day balance for payment banks to ____________.

Correct option is D

Correct Answer:D. ₹2 lakh

In April 2021, the Reserve Bank of India (RBI) announced that the maximum end-of-day balance for payment banks would be increased from ₹1 lakh to ₹2 lakh per customer. This decision was aimed at enhancing financial inclusion and enabling greater flexibility for customers using payment banks.

Payment banks are a special category of banks that can accept deposits, but are not allowed to lend.

• RBI Notification Date: 7 April 2021

• Earlier Limit: ₹1 lakh

• Revised Limit: ₹2 lakh (effective from 1 April 2021)

• Purpose of Payment Banks: To provide banking services to low-income households, small businesses, and migrant laborers

• Examples of payment banks:

  • Airtel Payments Bank

  • India Post Payments Bank

  • Paytm Payments Bank