Reserve Bank of India (RBI) has released new guidelines on how payments work within mobile wallets. To promoting digital transactions, RBI has laid out new norms which if the mobile wallet services implements will allow users to send or receive money from one wallet to another. Some of the popular mobile wallet services in the country are Paytm, Oxigen, MobiKwik and so on.
RBI Issues New Guidelines to Provide Payments Between Mobile Wallets
Interoperability of all KYC-compliant Prepaid Payment Instruments (PPIs) was to be enabled in three phases – interoperability of PPIs issued in the form of wallets through Unified Payments Interface (UPI), interoperability between wallets and bank accounts through UPI, and interoperability for PPIs issued in the form of cards through card networks.
RBI issued consolidated guidelines for enabling all phases “in order to prepare better for implementation of interoperability”. Interoperability is the technical compatibility that enables a payment system to be used in conjunction with other payment systems.
Interoperability allows PPI issuers, system providers and system participants in different systems to undertake, clear and settle payment transactions across systems without participating in multiple systems.
Paytm Welcomes the Move from RBI
Paytm COO Kiran Vasireddy said, It is a great step for the payments ecosystem in India. With these set of guidelines, the PPI ecosystem will become more stronger.