PhonePe, Paytm and Google Pay Wallets offer interoperability


RBI announced in a circular that mobile wallet apps such as PhonePe and GPay will need to offer interoperability starting in fiscal year 2023.

In India Mobile wallets are playing key role between customer and vendors bringing a new revolution, be it Paytm, PhonePe, Google Pay or Mobikwik; All of them have been instrumental in reducing dependence on physical money by reducing the need to carry a lot of cash.

interoperability meaning

It seems the ability to transfer money to your digital wallet is about to get a lot easier after an announcement from the RBI. According to the Reserve Bank of India or RBI, all mobile wallets, whether it's a Google or Paytm offering, will need to allow interoperability starting in fiscal year 23 or April 1, 2022.

This announcement came on an order from the RBI, which aims to simplify digital banking in India, which has improved a lot over the past few years, but is still out of reach for the general population.

The new rule is applicable to all authorized prepaid payment instruments or PPIs in the country starting in April 2022 and the decision was made after the meeting of the Monetary Policy Committee in April 2021.

What is wallet interoperability meaning?

When it comes to digital wallets, interoperability refers to the ability to allow valid users who own KYC verified to send and receive money from different mobile wallets. This means if you're using more than one wallet of the above companies, will now be able to send your money from Paytm wallet to your Mobikwik wallet or vice versa.

According to RBI, digital wallets can facilitate this interoperability via UPI or the unified payment interface. 

He also added that card-based PPIs could achieve interoperability through card network interoperability. The only exception is the PPI for Mass Broadcast Systems (PPI-MTS) and RBI indicates that GIFT PPI broadcasters have the option to offer interoperability if they wish.

A statement in the circular issued by RBI states that any PPI issuer offering this specific facility must implement adequate customer appeal mechanisms. Complaints in relation to this will be included within the scope of the respective ombudsman systems, as well as in the instructions on limiting customer liability.

Additionally, RBI also stated that customers will be able to use their mobile wallets to withdraw, limited to Rs 2,000. 

Portfolio limits have also been extended from Rs 1 lakh to 2 lakh. It also noted that PPI users should be required to establish adequate cooling periods for cash withdrawals when opening PPIs or reloading funds into PPI to mitigate the risk of fraudulent use.

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