According to the Reserve Bank of India’s (RBI) latest order aimed at simplifying digital banking in India, all mobile wallets in India, including PhonePe, Paytm, Google Pay, and Mobikwik, will have to allow interoperability from FY23, or April 1, 2022.
Beginning in April 2022, the rule will apply to all licenced prepaid payment instruments (PPIs) in the country. The decision was made following the April 2021 meeting of the Monetary Policy Committee.
What does interoperability mean?
In this case, mobile wallet interoperability will allow valid users with verified KYC to send and receive money from different mobile wallets. This means you’ll be able to transfer money from your PhonePe wallet to your Paytm or Mobikwik wallet, or vice versa. According to the RBI, digital wallets can facilitate interoperability via the UPI (Unified Payments Interface).
Is interoperability limited to mobile wallets?
According to the RBI, card-based PPIs can achieve interoperability through card network interoperability. Interoperability has been waived for PPI for Mass Transit Systems (PPI-MTS). According to the RBI, GIFT PPI issuers have the option of offering interoperability.
“Any PPI issuer that provides this service must have proper customer redressal mechanisms in place. Complaints in this regard will fall under the purview of the respective ombudsman schemes and instructions on limiting customer liability “The RBI stated in its circular.
What other changes are coming?
Customers will be able to use their mobile wallets for cash withdrawals of up to Rs 2,000, according to the RBI. The RBI has also increased the wallet limit from Rs 1 lakh to Rs 2 lakh. “PPI issuers shall implement appropriate cooling periods for cash withdrawals upon opening the PPIs or loading/re-loading of funds into PPIs to mitigate the risk of fraudulent use of PPIs,” the RBI stated.