Interoperability will only be allowed for wallets which are KYC complaint and the RBI has laid out a set of strict rules to keep digital wallets safe and prevent fake wallet transactions.
In an attempt to promote interoperability in the usage of prepaid payment instruments (PPI) such as mobile wallets, the Reserve Bank of India (RBI) directed all financial companies to make KYC-compliant PPIs interoperable within the next six months.
Interoperability will only be allowed for wallets which are KYC complaint and the RBI has laid out a set of strict rules to keep digital wallets safe and prevent fake wallet transactions.In lieu of the RBI directives, here are all that would be implemented soon:
- In the first phase, KYC-compliant PPI's in the form of wallets will ensure that users can be transferred across different wallets using the United Payments Interface (UPI).
- Secondly, users will be able to transfer money from the mobile wallets to bank accounts using the UPI .
- Subsequently, interoperability for PPIs issued in the form of cards will also be implemented.
- A completely KYC-compliant wallet will have a maximum balance limit of Rs. 1,oo,000 from the earlier limit of Rs. 2,00,000.
- Additional factor authentication except Mass transit systems will be required for all PPI transactions.
- After December 31, 2017, prepaid meal vouchers will only be issued in an electronic form instead of paper vouchers.