FreeCharge and MobiKwik welcomes RBI's expanding wallet limits to Rs 20,000

RBI's (Reserve Bank of India) initiative of increasing the limits on wallets to Rs 20,000 for users and to Rs 50,000 for merchant bank transfers has been welcomed by Freecharge and MobiKwik. 

The previous limit of Rs 10,000 restricted the option to use the wallet for higher value transactions, including travel bookings, utility payments and purchase of high value goods on e-commerce sites. With this increase, customers will now be able to use their wallets for both everyday transactions. Merchants too would benefit immensely as they can now transfer higher amounts to their bank accounts without worrying about hitting the monthly limits.

Commenting on this new initiative, Govind Rajan, CEO, FreeCharge said, “FreeCharge welcomes RBI's decision to increase the limits on wallets to Rs 20,000 for users and to Rs 50,000 for merchant bank transfers. This is a big move for unorganised merchants. It will give them a real alternative to using cash and will promote the digital payment habit"
 
In the last fortnight, Freecharge has seen an 8x surge in the wallet load transactions indicating towards a sharp consumer preference for digital transactions. 
 
“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. The progressive policies of the RBI and the government's prompt resolution of industry issues will go a long way in building a cashless India,” added Govind Rajan.
 
Commenting on the increase, Upasana Taku, co-founder, MobiKwik said, "RBI 's steps will accelerate the adoption of mobile wallets in the country and ease the challenges being faced by the common man and local shopkeepers due to cash crunch. We support RBI and the government in their endeavour to transform India into a clean economy, free from black money and corruption."

"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," added Taku.