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Mobile wallets could soon function like bank accounts. Check details

The RBI has announced that it is mandatory for all operating prepaid payment instruments such as mobile wallets and prepaid cards to be interoperable. This will help mobile wallets function like bank accounts. Here's how:

UPDATED: April 8, 2021 14:28 IST

The Reserve Bank of India (RBI) on Wednesday said it is mandatory for all prepaid payment instruments (PPIs) such as mobile wallets and prepaid cards to be interoperable. This indicates that mobiles wallets will soon be able to function like bank accounts as they will be allowed to transfer and receive funds.

This is beneficial for customers who use bank accounts and mobile wallets. With mandatory interoperability, a customer will be able to transfer money from a wallet to a bank account and also from one company’s wallet to another.

The central bank also announced yesterday that the outstanding balance amount in PPI can now be Rs 2 lakh instead of Rs 1 lakh.

The central bank has also extended centralised payment systems — real-time gross settlement (RTGS) and national electronic funds transfer (NEFT) — to Prepaid Payment Instrument (PPI) issuers, card networks, white-label ATM operators and Trade Receivables Discounting System (TReDS) platforms.

In addition, customers will also be able to use mobile wallets at Arms to withdraw cash and at point-of-sale terminals. This feature was only available to wallets issued by banks till now.

According to experts, all of these facilities will help in enhancing digital payment infrastructures. However, such facilities can only be availed by those who have completed a full KYC with the issues of the PPI.

Sourcehttps://www.indiatoday.in/business/story/mobile-wallets-could-soon-function-like-bank-accounts-check-details-1788569-2021-04-08

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