Most of the mobile wallets to be interoperable from April 2022

The Reserve Bank of India has issued a circular asking all licensed prepaid payment instruments (PPIs) or mobile wallets such as PhonePe, Paytm, Google Pay and Mobikwik, to be interoperable from FY23. Hence, with the beginning April 2022, a mobile wallet user, who is fully vetted and has fulfilled all KYC norms, will be able to send and receive money from various mobile wallets.

The central bank added that for card-based PPIs, this can be accomplished through card network interoperability and for e-wallets via the UPI. The mobile wallet user, who is fully vetted and has fulfilled all KYC norms, will be able to send and receive money from various mobile wallets. Besides, the central bank stated that for card-based PPIs, this can be accomplished through card network interoperability and for e-wallets via the UPI (Unified Payments Interface).

PPI for Mass Transit Systems (PPI-MTS) will remain exempted from interoperability whereas GIFT PPI issuers have the option to offer interoperability. Furthermore, mobile wallets can also be used for cash withdrawals up to INR 2,000, the circular stated, adding that the wallet limit has also been expanded to move from INR 1 lakh to Rs.2 lakh.

Currently, cash withdrawal is permitted only for full-KYC PPIs issued by banks, such as debit and credit cards. However, under the new rules, a prepaid card or payment wallet can now be used to withdraw cash at ATMs, micro-ATMs, and eligible POS depots.

Presently, cash withdrawal is permitted only for full-KYC PPIs issued by banks, such as debit and credit cards. However, under the new rules, a prepaid card or payment wallet can now be used to withdraw cash at ATMs, micro-ATMs, and eligible PoS (Point of Sale) depots.