FreeCharge welcomes RBI’s move by expanding the wallet limit to 20,000

by November 23, 2016 0 comments

FreeCharge, India’s digital payments platform, acted swiftly and increased the limits for all users to Rs 20,000 as allowed by RBI.

Additionally, merchants can also now transfer up to 50,000 rupees every month using FreeCharge. Given the fast increasing demand for digital payments from both users and merchants, FreeCharge has already updated the wallet to match these new guidelines.

Commenting on this new initiative, Govind Rajan, CEO of 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 organised merchants.  It will give them a real alternative to using cash and will promote the digital payment habit”

Since the demonetisation, India has witnessed a massive surge in the use of digital wallets. The percentage of the first time users of Freecharge has seen a massive 15X surge, which effectively makes every fourth consumer loading Freecharge wallet a first time consumer. 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.

The increase in wallet limits solves an immediate problem for users, who were faced with a choice of doing many smaller value transactions or some higher value ones. 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 as also other episodic usage. Merchants too would benefit immensely as they can now transfer higher amounts to their bank accounts without worrying about hitting the monthly limits.

Freecharge aims to accelerate the adoption of mobile wallets and elevate the digital transaction experience by inculcating a habit to fast track India into a cashless economy. This thrust is in line with Freecharge’s mission to make commerce seamless and frictionless for its consumers and merchants.

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