{"id":6179,"date":"2021-06-16T08:47:51","date_gmt":"2021-06-16T08:47:51","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=6179"},"modified":"2021-06-16T08:49:28","modified_gmt":"2021-06-16T08:49:28","slug":"rbi-mandates-interoperability-of-ppis-prepaid-cards-wallets","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/rbi-mandates-interoperability-of-ppis-prepaid-cards-wallets\/","title":{"rendered":"RBI Mandates Interoperability of PPIs (Pre-paid Cards, Wallets)"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The\nReserve Bank of India ordered all prepaid payment instruments or wallets that\nare KYC (Know Your Customer) compliant to be made interoperable by March 2022.\nThe RBI issued a notification in this regard on 19<sup>th<\/sup> May 2021. In\nthis blog, we are going to discuss the details of the notification concerning\nthe interoperability of PPIs.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f60b9398ea\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f60b9398ea\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/rbi-mandates-interoperability-of-ppis-prepaid-cards-wallets\/#Interoperability_of_PPIs_Details_and_Background_of_the_Notification\" title=\"Interoperability\nof PPIs: Details and Background of the Notification\">Interoperability\nof PPIs: Details and Background of the Notification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/rbi-mandates-interoperability-of-ppis-prepaid-cards-wallets\/#What_is_the_Meaning_of_PPI\" title=\"What is\nthe Meaning of PPI?\">What is\nthe Meaning of PPI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/rbi-mandates-interoperability-of-ppis-prepaid-cards-wallets\/#What_is_the_meaning_of_Interoperability_of_PPIs\" title=\"What is\nthe meaning of Interoperability of PPIs?\">What is\nthe meaning of Interoperability of PPIs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/rbi-mandates-interoperability-of-ppis-prepaid-cards-wallets\/#Why_has_Reserve_Bank_ordered_for_Interoperability_of_PPIs\" title=\"Why has\nReserve Bank ordered for Interoperability of PPIs?\">Why has\nReserve Bank ordered for Interoperability of PPIs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/rbi-mandates-interoperability-of-ppis-prepaid-cards-wallets\/#What_are_the_Advantages_of_the_New_RBI_Order\" title=\"What\nare the Advantages of the New RBI Order?\">What\nare the Advantages of the New RBI Order?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/rbi-mandates-interoperability-of-ppis-prepaid-cards-wallets\/#Additional_Details_of_the_RBI_Notification\" title=\"Additional\nDetails of the RBI Notification\">Additional\nDetails of the RBI Notification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/rbi-mandates-interoperability-of-ppis-prepaid-cards-wallets\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interoperability_of_PPIs_Details_and_Background_of_the_Notification\"><\/span>Interoperability\nof PPIs: Details and Background of the Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nReserve Bank of India tells in the notification that pre-paid instrument\noperators to permit full interoperability of PPIs card and e-wallets for\nclients who have met the full KYC criteria. Payment entities must enable PPI\ninteroperability by 2022. <\/p>\n\n\n\n<p>In\nApril, the governor of the RBI, Shaktikanta Das, had announced that the limit\nfor complete KYC PPI accounts would be raised from Rs. one lakhs to Rs. two lakhs.\nIt means that a PPI e-wallet or PPI card user may double the amount they store\non the payment instrument. In view of the fact that the migration towards\ninteroperability has not been considerable, now interoperability has been made\ncompulsory for complete KYC compliant PPIs for the entire payment acceptance\ninfrastructure. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Meaning_of_PPI\"><\/span>What is\nthe Meaning of PPI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>PPI\nstands for Prepaid Payment Instruments are preloaded cards or digital wallets.\nFor example, Mobikwik, Paytm, Phonepe, etc., are payment apps that allow\nclients to add funds into the app to spend the funds via the app itself. Such\nare PPI e-wallets. Conventionally payment apps possess PPI licenses; however,\nwith the coming up of <strong><em>UPI (Unified Payment Interface)<\/em><\/strong>, the\nouccrences of loading the app with money have decreased significantly since the\nUPI is a flawless bank to bank payment system and based on which such apps deliver\na great client experience.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_meaning_of_Interoperability_of_PPIs\"><\/span>What is\nthe meaning of Interoperability of PPIs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Interoperability\nmeans that despite who issues the PPI card or the e-wallet, clients can use their\ne-wallet or PPI card at any payment acceptance point. Hence, it means under\ninteroperability, a PPI owner can swipe their card at any merchant channel\nhaving a card swiping instrument or machine. Similarly, while UPI is\ninteroperability, a client would be able to transfer their Payment wallet funds\nto a Mobikwik or a Phonepe wallet if they want.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_has_Reserve_Bank_ordered_for_Interoperability_of_PPIs\"><\/span>Why has\nReserve Bank ordered for Interoperability of PPIs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\norder to encourage utilisation of payment instruments like cards &amp; wallets\nand the given the restraint of insufficient payment acceptance infrastructure\nlike ATMs, Point of Sale devices, QR codes etc., the Reserve Bank of India has\nbeen stressing for interoperability amongst the acquiring &amp; issuing\nentities alike.<\/p>\n\n\n\n<p>It should be remembered that the <strong>Reserve Bank of India<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.rbi.org.in\/\"><strong>[1]<\/strong><\/a><\/sup>, in its notification, has exempted<strong> <\/strong><a href=\"https:\/\/swaritadvisors.com\/learning\/newsletter\/prepaid-payment-instruments\" class=\"text-primary\"><strong>Prepaid Payment Instruments<\/strong><\/a> for mass transit systems and gift Prepaid Payment Instruments from complying with their instruction. But, gift Prepaid Payment Instrument issuers may provide interoperability if they want.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Advantages_of_the_New_RBI_Order\"><\/span>What\nare the Advantages of the New RBI Order?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The new RBI order comes with the following benefits:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"602\" height=\"103\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/06\/image-15.png\" alt=\"Advantages of the New RBI Order\" class=\"wp-image-6181\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/06\/image-15.png 602w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/06\/image-15-300x51.png 300w\" sizes=\"(max-width: 602px) 100vw, 602px\" \/><\/figure><\/div>\n\n\n\n<ol><li><strong><em>Greater Online Payment Usage\nand Adoption<\/em><\/strong>: It may also direct to greater digital\npayment adoption and usage. It will additionally give the payment instrument\ngreat value and utility. It may add to India\u2019s rising mobile payment users.<\/li><li><strong><em>Merchants would be Competent to\nAccept More Wallets<\/em><\/strong>: At present, mobile wallet\nproviders are required to construct merchant networks to get clients to use\ntheir wallets, but with the new RBI order, providers do not have to worry about\nit as all UPI accepting merchants would be able to accept their wallets. This\ncan increase acceptance and cover the way for improved revenue and volume.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Additional_Details_of_the_RBI_Notification\"><\/span>Additional\nDetails of the RBI Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nnotification\/circular of the Reserve Bank of India also laid down the rules of\npermitting cash withdrawal from completely KYC Prepaid Payment Instruments\nissued by non-banks. There would be a maximum limit of Rs. 2000\/- per\ntransaction within the general limit of Rs. 10,000 per month per PPI (Prepaid\nPayment Instrument). All cash withdrawal transactions using a wallet or a card\nwill be certified by an extra aspect of authentication or PIN. Issuers\ndelivering withdrawals would put a particular cooling-off period for cash\nwithdrawals on opening the Prepaid Payment Instruments or loading\/reloading\nfunds into the Prepaid Payment Instrument to decrease the fraudulent use risk.<\/p>\n\n\n\n<p>The\ncash withdrawal limit from the points of sale terminals with debit cards &amp;\nopen system prepaid cards issued from banks has also been streamlined to Rs.\n2,000\/- per transactions within an overall monthly limit of Rs. 10,000\/- across\nall locations. Prior to this, withdrawals via this mode were capped at Rs.\n1000\/- for tier I and II centres and Rs. 2000\/- in case of other centres.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Different industry players pervious lauded such moves telling that interoperability of PPIs may help wallets in getting back the space that they lost to banks and other players with the arrival of UPI and the new KYC necessities. There could also be an opportunity that non-banks would be able to compete for micro-savings from the underbanked segments efficiently.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"620\" height=\"877\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/06\/download.png\" alt=\"RBI Mandates Interoperability of PPIs\" class=\"wp-image-6182\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/06\/download.png 620w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/06\/download-212x300.png 212w\" sizes=\"(max-width: 620px) 100vw, 620px\" \/><\/figure><\/div>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/types-of-prepaid-wallet-license\/\">Types of Prepaid Wallet License: A Guide on Different PPIs\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India ordered all prepaid payment instruments or wallets that are KYC (Know Your Customer) compliant to be made interoperable by March 2022. The RBI issued a notification in this regard on 19th May 2021. In this blog, we are going to discuss the details of the notification concerning the interoperability of [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":6186,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[62],"tags":[703],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6179"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=6179"}],"version-history":[{"count":15,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6179\/revisions"}],"predecessor-version":[{"id":6197,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6179\/revisions\/6197"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/6186"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=6179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=6179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=6179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}