16 Oct 2017
The Reserve Bank of India (RBI) last week released a set of master directions for issuance and operation of Prepaid Payment Instruments (PPI), commonly known as wallets.
With the previous directions released back in 2009, the new norms encompass interoperability (allowing wallets to transact with each other) and stricter KYC (Know Your Customer) norms.
The RBI said one of the key purposes of releasing the new norms was – ‘To provide for harmonisation and interoperability of PPIs’, allowing them to transact with each other.
Some key takeaways of the norms:
Interoperability is expected to be enabled in phases, starting with KYC compliant wallets being allowed to transact with each other. In subsequent phases, transactions will be enabled between wallets and bank accounts through UPI (Unified Payments Interface).
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