Make mobile wallets interoperable within 6 months: RBI to financial firms
MUMBAi The Reserve Bank of India (RBI) on Wednesday directed financial companies to make know-your-customer-compliant prepaid payment instruments (PPIs) such as mobile wallets interoperable within the next six months.
“In the first phase, PPI issuers (both bank and non-bank entities) shall make all KYC-compliant PPIs issued in the form of wallets interoperable amongst themselves through Unified Payments Interface (UPI) within six months from the date of issue of this direction,” RBI said.
UPI is a payments system launched by National Payments Corp. of India (NPCI) in August 2016 that facilitates instant fund transfer between two bank accounts on a mobile platform, without having any details of the beneficiary’s bank. KYC is a process through which financial institutions verify information about customers to ensure services are not misused.
“In subsequent phases, interoperability shall be enabled between wallets and bank accounts through UPI. Similarly, interoperability for PPIs issued in the form of cards shall also be enabled in due course,” said the directive issued by RBI.
According to RBI, the directive is effective from the date of issue and the existing PPI issuers shall ensure compliance with the revised requirements on or before 31 December. However, the operational guidelines on interoperability will be issued separately.
As carried in HT