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RBI should go for 10-fold rise in deposit, advances caps for OTP-based accounts: Amitabh Kant

14 Sep 2017 Evaluate

NITI Ayog chief executive officer (CEO) Amitabh Kant has said that the Reserve Bank of India (RBI) should go for a ten-fold increase in the deposit and advances caps on accounts opened through OTP based e-KYC. He believes that such a liberalisation in the caps will help expand the digital payments journey. Besides, he said that the limit on savings account can be increased to around Rs 10 lakh from the existing Rs 1 lakh and that for loan accounts can be raised to Rs 6 lakh from the current limit of Rs 60,000.

Besides, the RBI had allowed for the one time password (OTP) based electronic know your customer (e-KYC) of accounts to bring customers on board faster as part of the financial inclusion agenda, but set certain caps on the transactions which go through such accounts. Identifying this as an obstacle in the growth of the cashless agenda, Kant said that more reforms are needed on this with priority and also suggested for the need to allow the OTP-based eKYC for credit cards as well.  He also urged the RBI to allow for digital signatures on loan documents, and stated that the central bank is yet to come up with an express notification on it despite the Government of India taking a decision to allow it. 

Apart from that, NITI Aayog CEO has pointed out that there is also the challenge of allowing digitally signed mandates for repayment of loans which needs to be looked into. He said that they have several areas of regulatory action and there is a need to push for reforms in a bigger way. Adding further, he said that the banks also need to great up to the changes and should look at disbursing loans within five minutes of an application being made through the use of the digital technologies and richer databases. He also pointed out that paperless loan applications also help reduce the bank's ongoing NPA issues. He added that there are 29 crore bank accounts opened under the Prine Minuster’s Jan Dhan Yoajana till August.

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