RBI Increases Bulk Deposit Limit to Rs3 Crore for SCBs, Introduces e-Mandate for Recurring Payments Like FASTag, NCMC, UPI Wallet
Moneylife Digital Team 07 June 2024
Reserve Bank of India (RBI), while revising upwards bulk deposit limits and rationalising export and import regulations, introduced new facilities within the e-mandate framework for recurring payments without fixed periodicity to streamline digital payments.
 
RBI increased to Rs3 crore from Rs2 crore the bulk deposit limits for scheduled commercial banks (SCBs), small finance banks (SFBs) and local area banks. Previously, bulk deposits were defined as single rupee term deposits of Rs2 crore and above for SCBs, excluding regional rural banks and SFBs. 
 
For local area banks, the bulk deposit limit is now set at Rs1 crore, aligning it with the limit for regional rural banks. The new RBI guidelines are expected to be issued shortly, allowing banks more flexibility in managing interest rates and asset-liability management.
 
In a move to further liberalise and simplify the operational procedures under the Foreign Exchange Management Act (FEMA), 1999, the RBI is planning to rationalise existing guidelines on the export and import of goods and services. This initiative aims to enhance operational flexibility for authorised dealer banks and promote ease of doing business in line with the evolving dynamics of global cross-border trade. Draft regulations will be published on the RBI website by the end of June 2024 for stakeholder feedback before finalisation, the central bank says.
 
To sustain public confidence in digital payment systems and minimise fraud risks, RBI announced the establishment of a digital payments intelligence platform. According to the central bank, this platform will harness advanced technologies for real-time data sharing and fraud mitigation across payment networks. A committee chaired by AP Hota, former managing director and chief executive officer (MD&CEO) of the National Payments Corporation of India (NPCI), has been constituted to examine various aspects of this initiative, with recommendations expected within two months.
 
The RBI has proposed enhancements to the e-mandate framework to include recurring payments without fixed periodicity, such as auto-replenishment of FASTag and national common mobility card (NCMC) balances. “This automatic replenishment will be triggered when balances fall below a customer-set threshold, ensuring seamless transactions without the need for pre-debit notifications. Necessary guidelines for these changes will be issued shortly,” RBI says.
 
To improve user experience with UPI Lite, the RBI plans to introduce an auto-replenishment facility under the e-mandate framework. This facility will automatically load UPI Lite wallet when the balance dips below a predefined threshold without requiring additional authentication or pre-debit notifications. 
 
Continuing its efforts to foster innovation, the RBI announced the third edition of its global hackathon, “HaRBInger 2024 – Innovation for Transformation.” This year’s themes are ‘Zero Financial Frauds’ and ‘Being Divyang Friendly,’ focusing on enhancing digital transaction security and promoting inclusivity for individuals with physical disabilities. 
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