Soon Transfer Money From One Wallet To Other Via UPI
After the RBI has come out with rules on interoperability of PPIs or prepaid payment instruments, you will soon be able to transfer money from one mobile wallet to other via UPI.
The phenomena of interoperability facilitate compatibility between payment systems and once it takes final shape users will be able to transfer funds between mobile wallets and from mobile wallet to bank accounts. Further, the central bank said that in cases where prepaid payment instruments are issued as wallets, transfers shall take place via a unified payments interface or UPI.
In the case where PPIs are issued as cards, the cards will be linked to the formal card networks. RBI added, “PPI issuers operating exclusively in specific segments like meal, gift and mass transport system may also implement interoperability”.
In October last year, the RBI came out with a directive on interoperability for banks and PPIs that was to be rolled out in a phased manner. Further, it informed that operational guidelines per se interoperability will be released separately. The RBI to this effect said, “In the first phase, PPI issuers (both bank and non-bank entities) shall make all KYC-compliant PPIs issued in the form of wallets interoperable among themselves through the UPI within six months from the date of issue of this direction”.
The RBI’s directive released last year in October said, “In subsequent phases, interoperability shall be enabled between wallets and bank accounts through UPI. Similarly, interoperability for PPIs issued in the form of cards shall also be enabled in due course”.
UPI is an NPCI-launched payments system that enables instantaneous fund transfers between bank accounts on the mobile platform and in its details of the beneficiary’s bank account are not to be provided.
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