Friday 16 April 2021
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EconomyMobile wallet to turn into 'bank', e-wallet a/c limit now Rs 2...

Mobile wallet to turn into ‘bank’, e-wallet a/c limit now Rs 2 lakh

Mobile wallets and PPIs such as Google Pay, PhonePe, Paytm, PayU, Amazon Pay among other have to install an interoperation-boosting feature

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The Reserve Bank of India (RBI) has doubled the limit of maximum balance that an individual customer can hold with payments banks. Additionally, while your mobile wallets may soon turn into a bank as they will be allowed to transfer and get funds, just like you do with your bank account.

Henceforth, payments banks can hold a maximum balance of Rs 2 lakh per individual customers at the end of the day.

To promote optimal utilisation of payment instruments (like cards, wallets etc), and given the constraint of scarce acceptance infrastructure (like PoS devices, ATMs, QR codes, bill-payment touch points, etc.), Reserve Bank of India has been stressing on the benefits of interoperability amongst the issuing and acquiring entities alike, banks or non-banks.

“The Master Direction on Issuance and Operation of PPIs dated 11 October 2017 laid down a roadmap for a phased implementation of interoperability amongst PPIs issued by banks and non-banks. Thereafter, the guidelines issued in October 2018 enabled interoperability, albeit on a voluntary basis, insofar as the PPIs were full-KYC (they met all Know Your Customer requirements). Despite a passage of two years, migration towards full-KYC PPIs, and therefore interoperability, is not significant,” RBI said.

It is, therefore, proposed to make interoperability mandatory for full-KYC PPIs and for all acceptance infrastructure. To incentivise the migration of PPIs to full-KYC, it is proposed to increase the limit of outstanding balance in such PPIs from the current level of Rs 1 lakh to to Rs 2 lakh, an RBI statement said.

Mobile wallets and PPIs such as Google Pay, PhonePe, Paytm, PayU, Amazon Pay among other will have to install this feature that boosts interoperation between them

Besides, the mobile wallets and PPIs will act as a debit card. The RBI has allowed withdrawal facility to mobile wallets and PPIs users. With these initiatives that unveiled today, a user can transfer and withdraw money and through any white label ATMs.

Moreover, RTGS (Real-time Gross Settlement) and NEFT (National Electronic Funds Transfer) facility that only bank avails, will now be made available to mobile wallets, Fintech companies and PPIs too. The RBI, in its second such initiative to boost digital payments in India, has increased the ambit of RTGS and NEFT along interoperability feature.

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