RBI : If you use a digital wallet like Paytm, MobiKwik PhonePe, Amazon Pay, or Gpay then it is important news for you. The Reserve Bank has issued a new circular. In which it has been said that all prepaid payment instruments issued by the bank or non-bank i.e. PPIs will become interoperable from 31 March 2022.
Digital wallets will be interoperable, know what this means
This RBI order means that users with full KYC (Know-Your-Customer) will now be able to send and demand money from their wallet in the wallet of a different company. That is, it is not necessary to send money from Paytm to Paytm only, you can also send money to PhonePe wallet or ask for it.
Prepaid Card will be able to withdraw cash from Wallet
The circular issued by the RBI states that Wallet-based prepaid instruments i.e. PPIs will implement interoperability through UPI, while card-based prepaid payment instruments will implement it through the card network. This means that from March next year, payment wallets and prepaid cards can be used to withdraw cash from ATMs, micro ATMs. Also, you will be able to pay at the PoS terminal.
Will be able to withdraw cash in a month of 10,000
According to a circular issued by the RBI, users of non-bank PPIs with full KYC will be able to withdraw cash of Rs 2000 at a time and this limit will be Rs 10,000 in a month. According to the RBI circular, metro cards like PPIs (PPI-MTS), FASTag, etc., are excluded from interoperability for the mass transit system. While Gift PPIs will have the option of interoperability.
The RBI has increased the maximum outstanding limit from 1 lakh rupees to 2 lakh rupees when it is full KYC. With the step of the Reserve Bank, prepaid instruments will become almost like a payment bank, because PPI users can now withdraw cash from ATMs.
What is PPI
PPIs are cards or products that already have a lump sum amount, and in lieu of that, the cardholder can do many things including cash, purchase, and transfer of essential goods and services, sending money, and fund transfers. According to the RBI website, there are three types of PPI instruments. These include closed system PPI, semi-closed system PPI, and open system PPI. Paytm, MobiKwik, PayU come in semi-closed wallets in the country.