A recent press report said that the Reserve Bank of India on Wednesday relaxed norms by doubling the transaction cap on small money transfers in order to facilitate fund transfers to people, particularly migrants, who do not have bank accounts.
According to the new norms, the cash payout arrangements for amounts being transferred out of bank accounts to beneficiaries not having a bank account has been enhanced to Rs 10,000 from the current limit of Rs 5,000. The monthly cap on such transfer has been fixed as Rs 25,000 per beneficiary.
Also customers who do not have a bank account can now transfer funds to bank accounts of others, where the transaction limit is fixed as Rs. 5,000 and a monthly cap of Rs 25,000 per remitter. The Reserve Bank has also allowed transfer of funds among domestic debit/credit/pre-paid cards with the cap of Rs 5,000 per transaction and a monthly limit of Rs 25,000. The central bank has said that such fund transfers are to be effected on a real or near real time basis.
The RBI has recently hiked the key policy rates which have made it mandatory for banks to hike their lending rates. The hike in lending rates has made home loan and other retail loans dearer to the borrowers.