Money lying idle in different mobile wallets? Here’s why RBI’s interoperability rule is the best thing for you
Mobile wallet interoperability will allow customers to send and receive money from various mobile wallets.
- The central bank is aiming to simplify digital banking with wallet interoperability.
- You will be able to send your money from one wallet to another one with ease.
- Cash withdrawal transaction using a mobile wallet will require authentication.
New Delhi: The Reserve Bank of India has ordered all major payment platforms such as PhonePe, Paytm, and Mobikwik, among others, to enable mobile wallet interoperability for their customers from FY23 i.e. from April 1, 2022.
With the decision, the central bank is aiming to simplify digital banking in the country. The rule will be applicable on all licensed prepaid payment instruments (PPIs), including mobile wallets and prepaid cards.
What does wallet interoperability mean?
Mobile wallet interoperability will allow customers to send and receive money from various mobile wallets. Using the facility, you will be able to send your money from one wallet to another with just a few clicks. However, only KYC verified users will be able to leverage the facility.
How wallet interoperability is the best thing you could have asked for?
Remember when you got Rs 20 cashback in your Paytm wallet for your mobile recharge, you had no other option but to spend the money for services offered by the Paytm app.
That is now going to end with mobile wallet interoperability, as you’ll be able to transfer money from say Paytm to PhonePe or from PhonePe to Mobikwik in a few taps. RBI said that digital wallets can facilitate interoperability via Unified Payments Interface (UPI).
The best part is that you can club all the money lying idle in a wallet for withdrawing cash from point-of-sale (PoS) machines. According to RBI’s rules, you can withdraw a maximum of Rs 2,000 per transaction up to Rs 10,000 per month per PPI.
The central bank has notified that all cash withdrawal transaction using a mobile wallet will require authentication via an additional factor of authentication (AFA) or PIN, as another layer of security.