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Payments Banks: End-of-day balance limit doubled to ₹2 lakh

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2021-22/20 · issued 08 Apr 2021 · ~1 min read

Quick answerRBI has doubled the maximum end-of-day balance per customer for Payments Banks from ₹1 lakh to ₹2 lakh, effective immediately. This gives PBs more flexibility to serve customers better while continuing their financial inclusion role.

What changed

The maximum balance per individual customer at end of day for Payments Banks has been increased from ₹1 lakh to ₹2 lakh. This change is effective from April 8, 2021, and all other terms of the 2014 Licensing Guidelines remain unchanged.

What it means for you

Payments Banks can now allow customers to hold higher balances, reducing the need for frequent transfers to other accounts. This enhances customer convenience and supports PBs in offering more competitive services. Banks should update their systems and customer communication to reflect the new limit.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Update internal systems and processes to allow end-of-day balances up to ₹2 lakh per customer.
Communicate the new limit to customers through channels like SMS, app notifications, and branch signage.
Review and adjust any product offerings or fee structures that were tied to the old ₹1 lakh limit.
Ensure compliance with all other unchanged terms of the 2014 Licensing Guidelines.

Who it affects

Payments Banks, Customers of Payments Banks, RBI supervision teams

❓ Common questions

Regulatory timeline

Stated effective date effective from April 8, 2021
Decoded by BankPulse 2026-06-18 08:17 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Why did RBI increase the balance limit for Payments Banks?

RBI noted the progress PBs have made in financial inclusion and wanted to give them more flexibility. The increase from ₹1 lakh to ₹2 lakh per customer at end of day was announced in the April 2021 developmental policy statement.

Does this change affect any other rules for Payments Banks?

No. All other terms and conditions of the 2014 Licensing Guidelines for Payments Banks remain unchanged. Only the end-of-day balance limit has been revised.

When does the new limit take effect?

The enhancement is effective immediately from April 8, 2021, the date of the circular.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #316: DoR.LIC.REC.5/16.13.218/2021-22 — "Enhancement of Limit of Maximum Balance Per Customer at End of the Day from Rs.1 Lakh to Rs.2 Lakh - Payments Banks (PBs)" d”

📜 Read the original circular — full text as issued by RBI

RBI/2021-22/20
 DoR.LIC.REC.5/16.13.218/2021-22
 April 8, 2021
 Chief Executive Officers of Payments Banks
 Dear Sir/Madam,
 Enhancement of limit of maximum balance per customer at end of the day from ₹1 lakh to ₹2 lakh – Payments Banks (PBs)
 Please refer to paragraph 3 of Statement on Developmental and Regulatory Policies dated April 7, 2021 on the above subject.
 2. In terms of paragraph 4(i) of the ‘ Guidelines for Licensing of Payments Banks’ (Licensing Guidelines) dated November 27, 2014 , PBs were restricted to hold a maximum balance of ₹1 lakh per individual customer at the end of the day. It was also indicated in the guidelines that after gauging the performance of the PBs, RBI may consider increasing the maximum balance limit.
 3. Considering the progress made by PBs in furthering financial inclusion and with the objective of giving more flexibility to the PBs, it has been decided to enhance the limit of maximum balance at the end of the day from ₹1 lakh to ₹2 lakh per individual customer of PBs with immediate effect.
 4. The other terms and conditions of the Licensing Guidelines remain unchanged.
 Yours faithfully
 (Prakash Baliarsingh)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/20 · issued 08 Apr 2021. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12074&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.