The Reserve Bank of India recently increased the e-wallet or mobile wallet spend limit from ₹10,000 to ₹ 20,000. This will be application on all semi-closed Prepaid Payment Instrument (PPI) from ₹ 10,000/- to ₹ 20,000/- . The limit for merchants has been increased to ₹50,000. The move has come in the wake of the demonetization drive in the country after the ban on ₹500 and ₹1000 old notes. The earlier limit was barring people from going cashless beyond a certain point.
Upasana Taku, Co-founder, MobiKwik, said “We have heard the challenges regarding wallet limit, first hand from our users, especially sellers, and some of those would exhaust their ₹10000 limit within a week and then struggle with the woes of dealing in cash in these times. We are certain that this move will lead to remarkable growth in usage and adoption of mobile wallets, which is the need of the hour as we have a mammoth task in hand, that is to support a cashless India and lead change from an urban city to a rural village. As an industry, we hope that the increased wallet limits are extended even after this year.”
As the country is facing severe cash deficit, the mobile wallets have proved a bit of relief to the people as it allows them to buy and sell goods without really requiring cash. The increased limit will further bolster the cashless economy, believe experts. Most of the wallet players have welcomed the move.
On RBI’s decision to increase the limits on wallets to ₹20,000 for users and to Rs 50,000 for merchant bank transfers Govind Rajan, CEO Freecharge said, “FreeCharge welcomes RBI’s decision to increase the limits on wallets to ₹20,000 for users and to ₹50,000 for merchant bank transfers. This doubling of limits will have an immensely beneficial impact for users and small merchants. Given the quantum jump in digital wallets usage in recent days, this increase in limits makes it easier for both users and merchants to shift more of their cash transactions to digital wallets.”
It is expected that the move will help digital wallet companies to further their reach in the country. However, the real impact would be seen in the days to come. In nutshell, the demonetization has changed the dynamics of economy. The decisions pertaining to cashless players have got a significant boost.