RBI Governor Shaktikanta Das has made several announcements for digital payment wallet (Paytm, PhonePe-Mobikwik and Amazon Pay) users. Let’s know everything …
Shaktikanta Das, Governor of Reserve Bank of India, has made several new announcements after the credit policy on Wednesday. Some of these announcements are also for digital payment wallet (Paytm, PhonePe-Mobikwik and Amazon Pay) users. Let’s know everything about it
You will soon be able to transfer money from one digital wallet to another without any hindrance. It will not have anything to do with the service provider. It is a different matter that through UPI, you can transfer money through a wallet linked to a bank account. It works like a wallet-to-bank or bank-to-wallet or bank-to-bank transfer. Once the interoperability proposal of RBI comes into force, you will be able to transfer money to different wallets. For example, users of Paytm will be able to transfer money to the user of PhonePe Wallet.
PPI instruments such as digital wallets facilitate the purchase of goods and services at store value. 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. In the country, Paytm, Mobikwik, Payu etc. come in semi-closed wallets. Cash withdrawal is allowed only with open system PPI. These include debit cards and credit cards.
You will soon be able to withdraw cash from digital wallets like Paytm, Mobikwik and prepaid cards of non-bank entities. He has said that he will allow cash to be withdrawn from non-bank entities. The condition is that the customer has completed the KYC process. At present, cash withdrawals are allowed only to KYC compliant PPIs (Credit / Debit Cards) issued from banks. PPI refers to a prepaid payment instrument. Forex cards, digital wallets, etc. are some examples of PPIs.
Soon other than banks, other financial institutions will also facilitate RTGS and National Electronic Funds Transfer (NEFT). The Reserve Bank of India (RBI) has announced this. To promote digital payments, non-banks like Fintech and Payment Bank can quickly offer RTGS and NEFT facility. Until now, this facility was available only in banks.