A month after releasing stricter guidelines on the issuance and operation of Prepaid Payment Instruments (PPIs), the RBI has invited prominent bankers to deliberate over the impact the newly-instituted norms would have on the country’s digital payment sector.
In a move to introduce interoperability between PPIs, the Reserve Bank of India recently brought out a set of revised KYC guidelines to allow customers to move money between digital wallets of different companies and banks seamlessly through Unified Payments Interface (UPI).
As per the new norms, mobile wallets, which have been conforming to a minimum KYC format (such as simple verification of mobile number) are required to convert to full KYC wallet within 12 months of opening it. All existing wallet users will have to convert to the full KYC format by the end of this year.
The norms further dictate that minimum KYC wallets cannot have a balance of more than $153 (INR 10K) and this can be allowed only for the purchase of goods and services and not for remittances to other wallets or bank accounts. Meanwhile, full KYC wallets currently have a cap of $1,531(INR1 lakh) and are fully equipped with all facilities for fund transfer.
For a PPI licence, companies will henceforth need a positive net worth of $765K (INR 5 Cr) at the time of application as opposed to $306K (INR2 Cr) previously.
Commenting on the latest development, a banker in the know stated, “I think the regulator might consider pushing the deadline for bringing all wallets issued under the new rules for semi-KYC wallets, which they have set as December 31 of this year.”