Interoperability among PPIs allowed now
Making its displeasure on prepaid payments instruments (PPIs) issuers not adopting interoperability, the Reserve Bank on Wednesday said it will make it mandatory for such companies to make provisions for letting their customers transact with others after doing a full-KYC (know your customer).
image for illustrative purpose
Mumbai: Making its displeasure on prepaid payments instruments (PPIs) issuers not adopting interoperability, the Reserve Bank on Wednesday said it will make it mandatory for such companies to make provisions for letting their customers transact with others after doing a full-KYC (know your customer).
The central bank also doubled the maximum balance a single account in a payments bank can carry to Rs 2 lakh at the end of the day. Governor Shaktikanta Das on Wednesday said prepaid payments instruments (PPIs) were given the option to become interoperable, wherein customers of one company can send funds to customers of other PPIs or banks, in cases where a full KYC is done. "Despite the passage of two years, migration towards full-KYC PPIs, and therefore interoperability, is not significant. It is, therefore, proposed to make interoperability mandatory for full-KYC PPIs and for all acceptance infrastructures," Das said. To incentivise the migration of PPIs to full-KYC, it is proposed to increase the limit of outstanding balance in such PPIs from the current level of Rs 1 lakh to Rs 2 lakh, he added.
Das said the RBI has been stressing on interoperability to optimally utilize the payment instruments like cards and wallets and also given the constraint of scarce acceptance infrastructure like point of sale devices, ATMs, QR codes, bill-payment touch points.
