Attention Paytm, Google Pay, PhonePe Users: 3 Biggest Changes You Should Know (RBI Norms)
Changes In Mobile Wallets
Basically, it is a prepaid electronic account that comes under the category of Prepaid Payment Instruments (PPIs).
It can be used to pay for anything from shopping to bill payments to movie tickets, it can be used everywhere.
Moreover, these are payment instruments that facilitate the purchase of goods and services, including the transfer of funds, financial services, and remittances, against the value stored inside or on the instrument, as specified by the RBI under the Payment and Settlement Act, 2005.
Now RBI has made three major changes for these Prepaid Payment Instruments (PPIs) as listed below.
2. Increasing the Limit to Rs 2 lakh for Full-KYC PPIs
3. Cash Withdrawal allowed from Full-KYC PPIs of Non-Bank PPI Issuers
Mandating Wallet Interoperability
According to the RBI, a mobile wallet user who has been thoroughly screened and has met all KYC requirements now will be able to send and receive money from multiple mobile wallets from April 2022.
Further, the mobile wallet issuers must provide interoperability via authorized card networks and UPI for PPIs in the form of electronic wallets to full-KYC PPI holders.
In simple words, after implementation, the users will be able to send and receive money from a number of different mobile wallets.
It is noteworthy here that PPIs for Mass Transit Systems (PPI-MTS) will be excluded from interoperability until March 31, 2022.
For the Gift PPI issuers, they will have the option to provide interoperability.
Increase In Outstanding Amount
The second change is about increasing the maximum amount outstanding for full-KYC, it has been raised from Rs 1 lakh to Rs two lakh.
With this change, a user can hold a maximum amount upto Rs 2 Lakh in their wallet.
Cash Withdrawal Form Mobile Wallet
With this change, Per PPI, can withdraw cash up to Rs 2000 per transaction with a monthly limit of Rs 10,000.
For this implementation, they will be using an Additional Factor of Authentication (AFA) / PIN to authenticate all cash withdrawal transactions made by a card/wallet.
Cash withdrawal limit from Points of Sale (PoS)
This change is related to the cash withdrawal cap from Points of Sale (PoS) terminals in India.
Now using debit cards and open system prepaid cards issued by banks have been reduced to Rs 2,000 per transaction, with a monthly limit of Rs 10,000 across all locations.