Wednesday, 17 October 2018

RBI issues e-wallet interoperability advice: How it will alter the industry

Enables money transfer between wallets in first phase, with banks in second and through cards in third; 4-5 wallet players already in a testing phase
Digital payment
Technology : The Reserve Bank of India (RBI), on Tuesday, issued guidelines for interoperability of e-wallets, which will allow transfer of money from one wallet to another.
While the RBI, in its master direction in December 2017, had said it would enable full interoperability, the industry was awaiting the final rules.
Bipin Preet Singh, chief executive officer (CEO) of e-wallet company Mobikwik, said, “Wallets have always been treated as second cousins in the payments ecosystem. 
Wallets were previously close-looped ecosystems. You will soon be able to transfer money from Mobikwik to any other wallet or bank. This basic interoperability has brought us on a par with banks,” he added.
He added the wallet company will consult with the RBI and start working towards meeting the interoperability requirements.
Wallet players said the final guidelines will propel the prepaid instruments (PPIs) or wallet industry further. Four to five wallet players are already in a technical testing phase to transfer money between each other, said sources.
Naveen Surya, chairman emeritus of industry body Payments Council of India, said the prepaid industry could easily grow by five times in two to three years due to interoperability.
National Payments Corporation of India’s (NPCI’s) Unified Payments Interface (UPI) is likely to get a further push with wallet interoperability. A P Hota, former managing director & CEO, NPCI, said, “Wallet interoperability is a much-awaited step in the right direction. A phased approach is necessary for regulated growth of the sector,” he added.

 Business Standard OR  BS 

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