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NEFT, RTGS extended beyond banks in boost for fintech sector

Maximum end of the day balance limit for payment firms doubled to Rs 2 lakh

digital-payment [File] Representative image

The Reserve Bank of India on Wednesday extended centralised payment systems such as the National Electronic Funds Transfer (NEFT) and real-time gross settlement (RTGS) beyond banks to digital payments intermediaries. Until now, only banks were allowed to use RTGS and NEFT payments facilities.

Further, the maximum end of the day balance limit for payment firms has been doubled to Rs 2 lakh. 

Maintaining status quo, the RBI on Wednesday kept the benchmark repo rate unchanged at 4 per cent and the reverse repo rate at 3.35 per cent. The central bank maintained an accommodative stance and retained the real GDP growth projection for 2021-22 at 10.5 per cent. 

The central bank also announced Rs 50,000 crore additional liquidity facility to NABARD, NHB and SIDBI for fresh lending during 2021-22. 

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