A day after the Reserve Bank of India (RBI) released master directions on issuance and operation of prepaid payment instruments (PPIs), existing non-bank wallet players expressed concerns over the guidelines on know your customer (KYC) requirements and the lowering of the cash loading limit to Rs 10,000 from Rs 20,000 earlier.
Sriram Jagannathan, vice president at Amazon India, said the KYC requirement laid down by the regulator is not proportionate to wallet usage trends. “A concern is that even the low-usage wallets with limited merchant transaction functionality are required to do a KYC beyond 12 months (of the wallet being issued). This adds friction to customers and costs to issuer,” Jagannathan said, adding, “In line with international guidelines, a framework of proportional KYC could have been adopted.”
Amazon India offers a payment gateway service called Amazon Pay.
The RBI’s decision to reduce the amount that can be loaded into a wallet to Rs 10,000 from Rs 20,000 has also left issuers unhappy. On November 22, the central bank had raised the monthly limit for cash holding and reloads into wallets to `20,000 from the then limit of Rs 10,000 in order to ease digital transactions during demonetisation. Bhavik Vasa, chief growth officer at remittances firm ItzCash Ebix, said the new cap might impede the drive to reduce the number of cash transactions. “As an industry, we would like to seek clarity with the regulator and understand better on reasons for a few downward revisions and limits, like minimum KYC PPI limit of `10,000 and also the limits on gift cards, which are non-cash out instruments, and cash loading of PPIs,” Vasa said.
Most industry players lauded the decision to enable interoperability through the Unified Payments Interface (UPI). Navin Surya, chairman of industry body Payments Council of India, said the move brings PPIs at par with the widely used debit and credit cards.
“This lays the foundation for PPIs to become interoperable with all existing payment instruments and at par with acceptance of debit/credit cards in a phased manner,” he said.