Soon you will be able to transfer money from your Paytm wallet to a MobiKwik wallet and even a PayZapp (assuming you just use the wallet and not the HDFC Bank account). And, according to guidelines issued by the Reserve Bank of India (RBI) on wallets Wednesday, in the second phase—-the timeline for which has not been specified–you will also be able to transfer money from Paytm or MobiKwik
directly to a bank account.
The RBI has paved the way for achieving interoperability between mobile wallets and bank accounts, stating that interoperability shall be enabled in phases for prepaid payment instruments (PPIs).
In its master directions on issuance and operation of PPIs, the central bank said that in the first phase, PPI issuers — both bank and non-bank entities — shall make all know your customer (KYC)-compliant PPIs issued in the form of wallets interoperable amongst themselves through Unified Payments Interface (UPI) within the next six months. “In subsequent phases, interoperability shall be enabled between wallets and bank accounts through UPI,” the directions said, adding, “Similarly, interoperability for PPIs issued in the form of cards shall also be enabled in due course. However, banks may continue to issue PPIs in association with authorized card networks, as hitherto.”
The right to issue open system PPIs continues to rest exclusively with banks. Non-bank entities can only issue semi-closed PPIs, which do not allow withdrawal of funds.PPI issuers will have to carry out KYC after collecting minimum details of a holder before issuing a PPI.
These include a mobile number verified with a one-time pin (OTP) and self-declaration of name and unique identification number of any of the ‘officially valid document’ defined under Rule 2(d) of the Prevention of Money Laundering (PML) Rules 2005.
The amount loaded in such PPIs during any month will be capped at `10,000 and the total amount loaded during a financial year shall not exceed `1 lakh. The amount outstanding at any point of time in such PPIs shall not exceed `10,000. The total amount debited from a PPI during a single month will also be capped at Rs 10,000.
PPI issuers will have to maintain a log of all the transactions undertaken using the PPIs for at least ten years. “This data shall be made available for scrutiny to RBI or any other agency/agencies as may be advised by RBI. The PPI issuers shall also file Suspicious Transaction Reports (STRs) to Financial Intelligence Unit-India (FIU-IND),” RBI said.
Overseas transactions using PPIs was also permitted in a limited form. PPIs will be allowed to enable the facility of cross-border outward transactions only on explicit request of the PPI holders.